Consumer Duty – an update

Key Consumer Duty developments and recent communications issued by both AMI and the FCA, with commentary on implications for mortgage intermediary firms…

AR regime – updated AMI Q&A and deadline reminder

Having heard back from the FCA, we have updated AMI’s Q&A documenton the AR regime. We also wanted to remind firms of the upcoming 30 November 2023 deadline…

FCA application window open for firms approving promotions for unauthorised persons

Firms that approve financial promotions for unauthorised persons have until 6th February 2024 to apply for approver permission from the FCA…

FSCS levy and compensation figures update

The FSCS has released an update on its levy and compensation figures for 2023/24, as well as anticipated levy figures for 2024/25…

AMI unveils The Perception Gap, the fourth annual Protection Viewpoint

This Viewpoint features hot topics facing the industry, including value of advice, building trust, consumer buying habits and generational views & attitudes…

Your October update from AMI Chief Executive Robert Sinclair

AMI Chief Executive Robert Sinclair gives his October update, focusing on AMI’s Protection Viewpoint, new build and Consumer Duty…

Edit Content

Log in here for full access to all our great content

 

Please log in below with your username (which is your email address), using all lower-case letters.

 

Forgotten your password?
No problem, simply tell us you have forgotten your password to receive instructions instantly via email.

Having problems logging in?
If you are a current member but are unable to login, please first make sure you are using all lower-case letters for your username/email address. If you still have difficulties, please contact us via email at info@a-m-i.org.uk so we can rectify your problem.

Not a member?
Learn more about the benefits of becoming a member or apply online and we will be in touch.

Several large broker firms have launched or are about to launch their own online offerings for consumers wishing to transact on their computer or by mobile. However, what has been noticeable about these offerings is the decisive move to offer a hybrid model that affords customers the best of both online and face-to-face advice. Largely this is delivered through a mixture of automated mobile interaction supplemented with tailored advice over the phone. Combining personal advice with the best of technology has always been the approach favoured by AMI as it reflects more accurately the needs of the borrower.

Simultaneously, newer entrants to this market which had been focused on delivering fully automated advice appear to be favouring this hybrid model as well, with a noticeable shift away from the so-called benefits of removing all human interaction in the mortgage advice process. Those that have not made this adjustment have been forced to abandon customer-facing propositions.

There is an additional advantage to delivering a hybrid model. Lenders have anecdotally noted a higher instance of potential fraud flags in cases submitted online without human touch points. Whether this is a failure of the technology to catch these applications or simply those trying to commit fraud exploiting this technology is unclear. However, it is a trend the industry must be mindful of: it is damaging to progress across the sector if technology is failing to deliver and, indeed, improve case quality.

Customers too have high expectations of the experience they are entitled to in the mortgage application process. The industry must continue to develop ways to meet these expectations, but without compromising the end result for the customer – that they exit the advice process with the most appropriate mortgage for what they need, not what they think they want.

Aileen Lees
Senior Policy Adviser

April 2018

X

Forgot Password?

Join Us