Increase business potential with the web

According to recently released data from Forrester Research around 28 million UK consumers shop online today and the figure is set to jump to 37 million by 2014, the equivalent of £56bn in value.

The research added that UK consumers are leading the online shopping trend, with spending reaching around £1,312 per person per year. By comparison, Germans spend £771 a year online and the French spend £693 annually.

Additional research conducted on behalf of financial outsourcer Opal suggested that the internet and electronic channels could take over from mortgage brokers as the preferred distribution channel of the future. However, as a technology specialist working within the mortgage arena we believe that this isn’t necessarily the case and only those brokers with a distinct lack of vision will be hampered by future technological evolution.

There is no doubting the increasing popularity of online shopping, researching and comparing and the sooner some antiquated brokers realise this, the better. Brokers must embrace the changes in the national psyche by marketing themselves to target the ever increasing number of consumers demanding to play a more active role in the mortgage and financial services sourcing process.

Firm’s operating in the residential and buy-to-let mortgage market must look at what is happening around them, realise how powerful a tool the internet really is and work with it not against it. There will always be a need for advice as house buying remains the biggest commitment there is but there is growing evidence that people are looking to up the ante in terms of being more proactive and sophisticated in their searching and comparison methods.

The fact that the mortgage market is so behind the rest of the financial service industry in the utilisation of this technology is nothing short of staggering. There is still time to make changes to firms outlooks and models but these must be done soon to really maximise the huge potential that the internet can add to broker’s offerings.

It is fair to say that this market has certainly not been helped by the current inadequacies in the standards of mortgage comparison sites. We, at Evaluate Technologies, believe that current mortgage related comparison systems are killing the online mortgage market. Consumers increasingly expect the internet to deliver the opportunity for them to feel more in control over what they are buying. Unfortunately, online mortgage propositions have typically failed to keep up with their expectations. As a consequence, broker’s lead conversions have declined sharply, which has killed the market for mortgage brokers. The market will only resume its previous growth trajectory when consumers and brokers are provided with a proposition that meets their needs.

As economic conditions show no sign of abating, consumer confidence in financial services has dipped to a worrying low. As growing sectors of the media probe the banking system and economy to heighten public awareness of the problems being faced it is time to raise standards in terms of comparison sites and lead generation for mortgage brokers.

It is quite clear that the old model is failing. Sites that are limited to a short form generating leads for the highest paying mortgage broker will not survive the current shake-out. Nor will brokers that continue to tie themselves to this business model, as they are already telling us.

It’s time for brokers and comparison sites to embrace a new way of working; one that enables consumers to take a more active role in the process. The first companies in both sectors to do so will gain a crucial advantage in the fight to redesign their businesses to be competitive in the market that exists post credit crunch.

Julie Speed
National Accounts Director at Evaluate Technologies. For more information,
Visit evaluatetechnologies.com
Tel: 0845 355 3370
Email: office@evaluatetechnologies.com