peekpublishersTLDR:
- Efficiency and open banking are key trends in the lending industry for 2024.
- Lenders are focusing on cutting costs, improving the customer experience, and streamlining the mortgage application process.
- Open banking data is expected to become more accessible to mortgage brokers, leading to improved customer experiences and increased efficiency.
- Changes in regulations, including a ban on screen scraping, highlight the importance of trust and security in the lending process.
- Lenders, aggregators, and brokers should embrace change, prioritize efficiency, and invest in education to navigate the complex landscape.
Efficiency and open banking are emerging as key trends in the lending industry for 2024. Lenders are prioritizing efficiency to cut down costs and enhance the mortgage application process. They are aiming to provide a superior customer experience, reduce reworks, and expedite approval times. Technology leadership is also becoming crucial, with early adoption giving lenders a strategic advantage.
Open banking data is expected to play a significant role in the lending industry in 2024 and beyond. Over the past three years, there have been substantial investments in open banking, which has led to improved customer experiences, reduced fraud, and increased efficiency. In 2024, there is expected to be an acceleration in the accessibility of open banking data to more mortgage brokers. The largest lender in Australia, CBA, has already enabled open banking, and several other lenders are expected to follow suit in the first and second quarters of next year. The use of open banking data upfront can boost application quality and enhance the overall application process.
Change management and education are identified as essential factors for industry adaptation. Regulatory changes, including the eventual ban on screen scraping, highlight the paramount importance of trust and security in the lending process. Consumer Data Rights (CDR) and screen scraping have undergone changes to ensure the trustworthiness and security of data collected from consumers. Open banking data is positioned as a superior alternative, as it allows lenders to verify the authenticity and currency of data, thus enhancing trust in the information provided by applicants.
In this complex landscape, brokers, lenders, and aggregators face challenges such as fast turnaround times, cost-cutting, and heightened competition. It is crucial for industry players to embrace change and prioritize efficiency. Trust, security, and precision are key factors, and investment in education and understanding of the open banking process is essential. Brokers, recognized as Trusted Advisors, have a strategic advantage as regulators enable consumers to share data with them. By leveraging this trust and utilizing open banking data, brokers can enhance their services, improve customer experiences, and drive efficiency.
