A few weeks ago, we extended our exclusive rapid re-mortgage conveyancing proposition with Openwork to the broader market. The results have been impressive. At the time of writing, the service had delivered over 200 cases with instructions often being completion-ready in less than 3 hours. To date, the average ‘full completion’ is taking as little as 10 working days and since the roll out in mid-May the service is handling 25 cases per day.
Beyond the immediate headlines though, these figures tell us two things. One is that the product concept, which is available as part of our DigitalMove platform, has been a huge success with those brokers using it for client reasons and commercial reasons. The process quickly triages cases for possible exemptions (such as short leases and second charges cases) and qualifying clients receive their DigitalMove Rapid Remortgage Pack. Once fully completed and returned the case is made ready for completion by the end of the following working day. Quicker transactions mean improved cashflow and less idle money throughout the entire value chain which is supported by some heavyweight firms; O’Neill Patient, PLS and Gorvins.
The second part of this is a broader narrative that digital solutions have come of age. This success story underlines the fact that there is a window for digital solutions to establish a real foothold in our ‘social distancing’ times. The business of property law is no different to many other industries. Everywhere we look digital innovations are being born and welcomed into the world. In many instances, this need to fulfil efficiency and carbon reduction goals has meant the solutions have been in place for some time but many more will come. For others, necessity has once again been the mother of invention. The current lockdown has arguably brought the adoption of digital solutions forward by as much as 5 years.
Tech usage, on almost every measure, has gone through the roof. “Digital transformation” has been on boardroom agenda for what feels like an eternity. Indeed, even now, lenders of all shapes and sizes are edging ever closer to adoption albeit often driven by the pressures of thinning margins and consequent need for operational efficiencies. It turns out that for many of us who have been espousing the benefits of digitisation and digitalisation, the current situation has galvanised firms to rethink how they go about their business.
The earnings statements of many tech companies are enjoying the benefit of this change of heart. Satya Nadella, Microsoft’s chief executive officer, probably summed it up best when he explained that social distancing rules, have meant we now need “a remote everything”.
This impact in many walks of life is likely to be significant and long lasting. After all, the main drivers for adoption are all fired up in response to the pandemic. Consumer behaviour, political and regulatory policy and business processes are all finding good reason to deliver more digital change. Supply side or demand side, the runes are in favour of this continuing.
How companies do this themselves and how many outsource will depend on many things. Vision, resources, culture, size are a few pieces that dictate how and when digitalisation is embraced. But law is a different beast to other areas of financial services. It is regulated separately and is complex. No Financial Services company I know has the appetite to take on another set of regulators and do their own conveyancing!
Partnering then is the way forward. But there is a key risk here that needs addressing. It is important to partner with a firm that has established solutions that are working in the real market at volume. ULS technology has developed DigitalMove and delivered it to market out of working capital. With over 10,000 cases under its belt, it is already a market leading platform and by making it available to all our eConveyancer brokers and lenders, we are delivering DigitalMove’s ground-breaking functionality to any firm that chooses to use it. Next up is the broader value chain.
This is not to say our old ways of doing things will not make a return. They will but where there is no benefit to doing so they will not. Automation will embed itself where it is useful and profitable to do so.
The property industry is on the path to change digitally. The movement has begun and cannot be underestimated to stay resistant to technological innovation for long. From funding and transactions to building to management of property and tenant operations, there are few areas left for disruption.
What has been missing has been the demand side driver. Broad societal change is the result of seismic events and the Covid-19 crisis is no exception. The change is happening before our very eyes.
