The growth of equity release relies on technology innovation

09 February 2018

2018 is likely to be the year that the equity release market moves to its next phase of growth. Technology is going to play a growing role not only in driving equity release but also the later life lending market as a whole.

Existing firms are growing and others are entering the market either as new lenders or by utilising new funding lines now available. Technology also has a major part to play in the infrastructure of existing players in processing and servicing their lending.

Technology will be of increasing importance. The profile of borrowers is changing and will continue to do so in the future. Borrowers qualifying for equity release and other later life lending products that will be launched in the future, will be increasingly tech savvy, much more so than the same demographic were ten years ago.

They will therefore expect the level of interaction from their equity release lender that they have got used to in the rest of their ‘online’ lives. This will mean greater requirements for areas such as self-service where borrowers can view their balance, their statement or request drawdowns etc.

It may also mean not only self-service functionality but instant, system generated, answers to their questions – also enabling these enquiries to happen out of hours.

Artificial Intelligence will increasingly be a part of this and will become a requirement to help with the ‘always on’ society. Most lenders are still coming to grips with both delivering it and what it can really provide but undoubtedly providers of mortgage systems should be considering this in their overall product strategies.

Consistency of brand in equity release remains very important, especially for life and pensions companies now operating in this space. Culture and service will ideally be as close as possible across the organisation so that the customer has as similar user experience as is possible – no matter what product area of the company they deal with.  Technology can also play a big part in this important area.

All in all, things are positive with a huge potential for adding real value, not only to the mortgage market but also our economy and society as a whole. With new lenders and funders continuing to come to market, everything leads to continued growth and a market where everyone wins if the right steps are put in place now for the future.

Media contact

Debbie Staveley
Director and Owner,
bClear Communications

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+44 (0)1275 542 511

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