Most of us use technology to manage finances, purchase goods and services, keep in touch with loved ones, and even for hobbies.

The influence of tech has grown in the intermediary mortgage market, where advisers regularly use online applications and e-signatures for their day-to-day work.

However, while the mainstream market has been receptive to digitisation, the later-life lending sector has historically been slower.

This may be changing. In the past few weeks alone, the impact of the Covid-19 outbreak has helped push the equity release market towards a more technologically driven approach. This has led some in the industry to ask whether the pandemic may prompt the market to improve its use and development of technology.

Breaking away from the paper-based processes in the equity release sector has been sluggish for a number of reasons, such as the need for face-to-face independent legal advice and the requirement for human input in property valuations and conveyancing.

However, since the UK started to feel the full effects of the pandemic, we have seen a significant shift in that approach.

Although the extent of the disruption is yet to be known, the impact on the equity release sector has in some ways driven the market forwards. Social distancing guidelines have led to a substantial shake-up in processes along the equity release journey.

‘Remote only’ framework

Innovation from providers – in conjunction with the Equity Release Council – has helped the industry overcome some of the challenges associated with face-to-face advice, valuations and in-person document signing. The sector has successfully established a ‘remote only’ framework, which is enabling customers to continue to access the funds they need.

One by one, lenders and service providers have overcome the various difficulties that the crisis has presented, with many finding innovative ways to keep business going.

At more2life, we have brought in a package of measures to support our staff, advisers and customers, and have introduced semi-automated valuations to help advisers continue processing client applications.

Furthermore, we are at a stage where we can generate and progress key facts illustrations through to completion without a physical paper trail or the need for wet signatures.

More to do

Although the industry’s ability to adapt so quickly in the face of adversity is impressive, there’s still more work to do. The measures taken so far have been largely focused on ensuring the industry can keep moving in the short term. However, we must consider how we can use our new remote way of working as an opportunity to better support advisers and consumers in the long run.

Face-to-face advice will remain the gold standard – at least for the short to medium term – but the remote approach brings some benefits.

For advisers, a digital-first process enables them to reach out more quickly and easily to a greater number of potential clients outside their local community.

Others are learning the power of telephone- or video-based advice, how to keep clients updated using targeted marketing, and how to improve the search engine optimisation of their websites.

For consumers, this new way of working means being able to access advice through a wider range of channels at a time that suits them.

Advisers and lenders need to consider how the enforced changes to their way of working can be better embedded in the long term and improve business processes.

The challenging circumstances we face today have forced us to examine our existing approaches. By co-operating, we can lay solid foundations to help the industry emerge stronger on the other side.

Stuart Wilson, corporate marketing director, more2life