Mortgage lenders expect APIs to have biggest impact

More than half of lenders expect application programming interfaces (APIs) to provide the most transformative efficiency gains over the next three to five years, Iress research has revealed.

While the short-term focus is on API development and connectivity, lenders believe AI and machine learning will become a greater priority in the medium to long term.

Steven Carruthers, principal mortgage consultant at Iress, said: “Our 2019 Mortgage Efficiency Survey finds that blending human expertise with the use of technology like APIs, drives efficiency and is central to lenders’ efforts to speed up execution and improve service for intermediaries and consumers.

“We’re continuing to see mortgage hub connectivity, open banking and APIs shift the market away from stand-alone systems to a more connected mortgage ecosystem.

“Better integration – with intermediary software, sourcing services and other third-parties – are still a priority for lenders looking to invest strategically to improve efficiency, reduce risk and provide better customer outcomes.

“Those who ignore or fail to harness new and improved technologies in the mortgage market risk being left behind.”

More than a third of lenders are considering or actively reviewing artificial intelligence and machine learning technology to support their propositions, with just under a fifth likely to implement or have implemented this technology.

More than three-quarters of firms have already implemented or are considering the implementation of open banking.