Increasing regulatory and compliance demands top the list of challenges currently facing UK mortgage lenders, according to new research.
Regulation and compliance demands were cited by 70% of respondents to a poll from EDM Mortgage Support Services (MSS), a provider of information and business process management technology and services to the UK mortgage market.
Some 55% cited poor use of technology and or reliance on outdated technology, 50% said maintaining relationships with brokers, 46% the mortgage application and approval process and 38% a lack of transparency across the mortgage application and approval process.
The vast majority, some 89% of respondents, said they thought that technology will be significant in improving the transparency of the audit chain and the ability to clearly track actions across the complete mortgage application process and only 3% said it will be insignificant.
However, 73% believe that mortgage lenders face significant challenges in providing fully transparent and fully compliant data to key stakeholders such as regulators and 27% stated that they ‘absolutely’ believe this to be the case.
The poll also shows that 75% said that since the introduction of the Mortgage Market Review in 2014, effective data management has become ‘significantly’ more important in the mortgage application and approval process to meet regulatory requirements while 3% thought it has become insignificant.
‘Mortgage lenders and firms across the mortgage industry are facing a raft of challenges, not just from increasingly strident regulators but also new competitors, outdated technology systems, increasing levels of fraud and the need for process transparency,’ said Joe Pepper, managing director of EDM Mortgage Support Services.
‘It is more crucial than ever that lenders and other stakeholders implement the right technological solutions that can effectively and efficiently help them manage all these challenges at the same time,’ he added.
EDM Group expects the proportion of its revenue generated from the mortgage sector will significantly increase over the next few years because of the huge challenges facing lenders and intermediaries with regards to information management.
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Source: Property News Spain