The COVID-19 pandemic has been a wake-up call to the finance industry to become more accessible and useful for the average customers, starting a cascade of technological innovations that continue post-pandemic.
This is driven by a huge demand from consumers seeking efficiency as staff shortages mean fewer people must do more work and speed to allow for more time for value-added work. Another factor driving the adoption of fintech is the normalisation of working from home.
“Customers and referral partners are looking for choice, and lenders that provide an easy, seamless experience along with great customer service and a strong and varied product suite will set themselves apart in an extremely competitive environment,” said Nick McGrath, Moneytech chief executive.
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While these options make life significantly easier for end users, brokers are reaping benefits from the developments too.
Innovations save brokers from duplicating work and allow them to easily place a range of options before the customer. They can then use the time saved to increase their footwork in the market and generate the next lead.
By using more tech, brokers can also boost accuracy, which means fewer loan applications returning to them due to missing or mistaken paperwork.
Another plus is the speed of turnaround. This holds true even when a loan is declined, as it is faster to submit a modified application, or to seek an alternative lending channel.
“The element of speed can make a significant contribution to profit margins and bottom-line results,” said Cameron Poolman, OnDeck chief executive. “Brokers can now help their small business clients seize opportunities for growth when they arise.”
Personal loans ar another area seeing significant benefit, presenting brokers with an opportunity to expand their services.
“Fintechs are changing the game for personal loans and finance, with a host of innovative solutions that brokers can leverage to solve tricky lending scenarios,” said Kylie Waldock, MoneyPlace CEO.
“Brokers have a unique opportunity with personal loans to be able to provide customers with an ongoing relationship,” says Waldock. “A personal loan may only be the start of a broker’s financial relationship with their customers and can often lead to increased opportunities to help the customer with things such as mortgages, car finance, asset purchases and so much more.”
Tech is also essential to post-pandemic working norms, with both customers and brokers embracing WFH.
More than 95% of applicants for broking jobs now require an average of two days a week working remotely, recruiters in the mortgage broking space reported. Also, many loans are now processed entirely remotely without the need for face-to-face meetings between client, broker, and lender.
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