M
ortgages are a key area of competition for UK banks and building
societies, but they're becoming less and less profitable. Technology could
hold the answer.
Retail banks are facing significant challenges maintaining margins, due to compliance/
regulation costs, low interest rates and emerging competition from new players who
have identified a gap between customer mortgage expectations and reality.
So far, many banks have been unable to deliver convenient borrower experiences
due to complex processes and fragmented systems. The only options available to
preserve market share has been offering bundled discounts and cutting interest
rates, further reducing margins.
The rise of open banking provides a chance for banks to correct some of the historic
issues that have plagued mortgage lending including:
• High cost
• Manual processes
• Lack of tailoring
• Profitability
• Slow processes
• Fraud
In this report, we examine how open banking is creating new opportunities for
mortgage lending, resulting in more profitable, efficient and value-driven lending.
Open Banking
& Mortgages:
The next revolution in
lending
