We can all learn from the brand and technology approach of Equity Release

02 June 2017

So, the “bank of mum and dad” is assisting siblings onto the property ladder to the tune of over £5 billion per year nationally. These “subsidies” will obviously not only affect parents’ saving provisions, but are also potentially being funded through pension pot withdrawals and by the use of equity release mortgages.


The equity release market still relies on a mainly intermediated distribution channel and from an intermediary perspective this is a sale that generates good procuration fees. However, this is well-earned as the amount of face to face contact both with the borrower and relatives is often more labour intensive when dealing with equity release than it is with a traditional house purchase or remortgage. As equity release becomes more mainstream, undoubtedly there will be more intermediaries looking to sell the product to an aging population which is living longer.


The market continues to see investment by equity release lenders in intermediary point of sale technologies meaning point of sale activities are getting more efficient, allowing ease of access to documentation, online applications and case tracking, etc. Looking forward, further technology investment will also cater for more direct interaction with the borrowers themselves, with applicants being able to source product information and to make online enquiries more easily directly to the lender.

What is clear is the borrower experience is extremely important in the equity release sector. When life and pensions providers undertake equity release lending, they provide a continuity of brand, while the online service offering is kept in line, as far as is possible, with existing products that customers may already have an online experience of, such as life assurance or pensions.

In such instances, technology suppliers are sometimes requested to integrate with existing, in-house or third party built, online or digital solutions to ensure this brand continuity is achieved. This works very well as long as a supplier can efficiently integrate with these solutions via web services.

This approach will also probably become more of a consideration when banks and building societies are looking at changing systems.  It will allow for those who wish to, to procure a true best of breed solution via potentially more than one supplier as part of an overall transformation programme.

As integration becomes more efficient through new technologies this “best of breed” approach will undoubtedly become more mainstream, but there is an undoubted leap of faith required in some instances to go down this route.


Media contact

Debbie Staveley
Director and Owner,
bClear Communications

+44 (0)1275 542 511


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