Life needs to be simpler. I don’t think any of us would argue with that statement, but if that simplification comes at a cost, is it worth the price?

In recent years, the routes for securing a mortgage to buy a new home or remortgaging an existing one have increased dramatically. As a result, customers have more choice, which should be a good thing, but an array of options can only truly empower customers if the person making the decision is fully aware of what it is they are choosing.

The role of technology

The rise of technology within our sector has been met with a mixed reaction. Whilst most advisers would champion the speed and efficiency of CRM systems to manage their client database and are grateful for lenders’ online platforms reducing the time to offer, when it comes to technology providing advice, there’s a real fear about automated systems replacing humans.

Whilst technology can definitely streamline processes, the bigger fear is the risk of blurring the boundaries between automation and tailored advice. With other online options available, if a customer inputs all their data online and receives an offer via email, do they fully understand if they have received ‘advice’ or not? Whilst there is definitely a place for execution-only for some customers, there has to be more communication made to ensure customers know exactly which route they are taking, what that offers them and more importantly, what it doesn’t.

The value of advice

There is no doubt that the majority of people making big financial decisions would prefer guidance and advice to ensure the contract they are entering into is the right one. Seeking advice from a professional not only ensures the client’s current situation is considered, but future plans are also factored into decisions and the chosen product is fit-for purpose for its entire term.

Demonstrating the value of advice is something I feel very strongly about. The impact of a broker applying their knowledge and expertise to a case so a client can secure their home is priceless and the best in the business know that too. Nurturing strong relationships, delivering positive journeys and establishing a reputation for great customer outcomes are all among the most popular topics covered in our Growth Series to help brokers build their business and reinforce the importance of advice.

How that advice is given is up for debate. I think we can all accept that physical meetings are getting more difficult to prioritise and I know plenty of brokers who successfully use video calling to deliver the same personal touch in an easier way. But do we need to see the customer at all? Telephone advice is well-established, so why can’t this be translated to web-chat advice?

The channels we use to communicate in all aspects of life are changing, so it’s natural that the way we offer advice should also adapt – after all, delivering what the customer wants is what a broker is all about.

Digital brokers like Habito, Trussle and Mojo use technology to collect and verify customer information, suggest products and allow the tracking and visibility of a mortgage application at any time.But sitting behind that are brokers, talking to customers on the phone or online, offering advice and helping them to make the final decision.

So, it doesn’t matter how the advice is given, the customer will decide what’s best for them, but I am concerned about the number of opportunities for customers to go through a mortgage process with the impression they are being ‘advised’ when they are not. Price comparison websites can prompt the applicant with relevant questions, but this does not constitute ‘advice’.

Knowing the risks

Choosing the wrong mortgage can be costly. Even the slightest change to personal circumstances could impact the ability to meet monthly payments and if a client needs to move house mid-term, there can be costly fees to release them from the agreed deal.

Whilst seeking advice from a mortgage broker cannot stop anything unexpected happening, it is the adviser’s responsibility to ask the right questions, assess whether the client has considered the full implications and discuss what options they might have.

Protecting choice

In order for a customer to have choice, as an industry we need to work together to ensure people understand the options they have and which will be the best route for them. This transparency protects everyone and ensures each channel can co-exist and provide the right solution for the right customer.

We have a combined responsibility to protect anyone entering into a financial contract of this nature, so let’s accept that how we give advice is changing, but that advice itself has not changed. You either give it or you don’t: and a customer needs to be clear whether they have asked for it and received it, or agreed to proceed without, with their eyes wide open.