About two in five (40%) customers believe that ‘robo advice’ will be faster and more convenient than talking to an adviser, Accenture has found.
‘Robo-advice’ and ‘robo-advisers’ are a growing field of online investment and savings platforms that replace advice with online, automated guidance and execution.
But many still want to deal face-face, as two-thirds of consumers would prefer to speak to an adviser about complex products.
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Chris Schutrups, managing director at The Mortgage Hut, said: “Last year saw significant innovation in the mortgage market, with emerging new technologies that are changing the way lenders communicate with their consumers.
“We’ve also seen a change in dialogue from the new robo advice firms, which the focus changing from a solely digital process, to a hybrid model, which has a more flexible approach with the involvement of human beings.
“Lenders and brokers have a huge opportunity to improve customer experiences and relationships, by updating their legacy systems.”
In the Netherlands, a similar mortgage ‘robo advice’ model was launched, with the option of speaking to an adviser during the process.
For every 20 people who went into the top of the funnel, only one made it all the way, without dropping out and speaking to a real person.
Schutrups added: “Open banking will improve the customer journey and lenders have the opportunity to use this to streamline processes and allow transactions to be underwritten quicker.
“If implemented effectively, open banking will unlock innovation that will transform and improve the customer banking experience.
“Consumers will be able to look for a mortgage more easily, banks match consumers to a new product and businesses share data with their accountants.
“This in turn, will improve efficiency and stimulate innovation. Instead of doing banking through one or two firms, consumers will have their current account with one provider, then bolt on other financial services like an insurance policy, ISA, mortgage and investment through other providers, all under the interface they choose.
He added: “Technology will not only improve the customer experience significantly, it will also improve efficiency and in turn reduce processing costs.
“It will be interesting to see how consumers adopt new technologies, as this is a key challenge which innovators face when trying to change buying habits.
“In 2018, lenders and brokers have a huge opportunity to improve customer experiences and relationships by updating legacy systems.”