Most loans to be sourced digitally ‘within 10 years’, says fintech
A web-based brokerage has predicted that “within five to 10 years” most home loans will be sourced through digital platforms.
Re-iterating what he told The Adviser in May, the founder and CEO of online brokerage uno. has predicted that there is “huge potential” for digital broking in the future, despite digital mortgage origination currently representing less than 3 per cent of the mortgage market.
Vincent Turner highlighted research undertaken by financial services firm Deloitte in 2016 for the Mortgage and Finance Association of Australia, which found that 27 per cent of broker customers and 34 per cent of direct-to-lender customers would consider making digital mortgage applications, as testament to this potential.
He commented: “Busy professionals love this high-touch digital service. They don’t have time for the traditional methods. Higher availability of service teamed with quality advice isn’t being provided anywhere else and is an expectation from consumers in a digital economy. And the chances are, that if consumers are not using a digital service to find a mortgage, then they’re probably paying too much.”
Last month, Mr Turner told The Adviser that every year the industry gets closer to a point “where technology can make the entire lending decision”, but noted that artificial intelligence would not spell the end of brokers in the next decade.
He said at the time: “Each year, we get closer to where technology can make the entire lending decision. As long as you give it all the data and the documents, and you can assume that any documents you give it, it’ll be smart enough to pull the data off those documents, populate it into a data file, then the lenders who can make decisions just based on uploading all of the documents you need for a particular person, they will win.
“And, if there’s still the concept for brokers, it’ll be a platform that has access to all of those lending algorithms.”
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Source: Most loans to be sourced digitally ‘within 10 years’, says fintech – The Adviser
