Even before the pandemic, the digital eco-system in mortgage lending was the subject of much conjecture. Some of it well-founded, other parts not so much. But the pandemic period, with its sudden focus on the need to work remotely, design new products, fund and write business securely from just about anywhere, has meant we now know a lot more than we ever did about what lenders stand to gain by adopting new working practices, cultures and the technologies that support them. During the pandemic, cloud operating systems saved many businesses and enabled other nimble ones to quickly evolve. These solutions are not only here to stay but are central to delivering business strategy going forward.

We see, like many lenders do, a future of cloud-based interoperable solutions that enable lenders to benefit from multiple APIs and other technology that enhance the user experience and allow for new propositions to be brought to market swiftly and safely. That these benefits are eminently affordable too is key. It is a real break with past practices. This way a new more transparent banking ecosystem will enable different participants to provide brokers and their borrowers with the services (financial and non-financial) that they value.

Succeeding in a new digital banking ecosystem will require a new set of capabilities, which are more common in other industries such as manufacturing than in today’s vertically integrated finance sector. Banks will need partnership teams to manage relationships with third parties; investment in data management layers and APIs to seamlessly transfer data with third parties; dynamic pricing capabilities; and a more integrated approach to channel management.

Banks, specialist lenders and building societies are, unsurprisingly in light of the recent lessons learned, investing heavily in their digital experience for consumers and for brokers. But this goes beyond the front-end. Over and above the intuitive user experience, omnichannel services, modular architecture, and the latest security features, leaders in this field are investing heavily in revising their core banking platforms – their systems of record – meaning the front and back ends can be truly ‘joined up’. This means that product propositions that might once have been strangled at birth by legacy technology are now possible. Changes to process such as lending rules, or interest calculations, can now be undertaken with minimal risk and feed straight through to other parts of that digital eco-system.

The stakes are high if lenders choose to do nothing. As more entrants come to market, newer customer-focussed entrants might lead to client attrition and margin pressure on some of the highest-margin products. Product and proposition people may well need to be more familiar with the latest tech offerings to support their work going forwards. The good news is that all of this is far more readily available than it used to be. The means are there, the question is how do you make the most of what’s available to you? We may have the answer for you.