Consumers still prefer face-to-face mortgage advice

Would you trust an app or a robot to give you mortgage advice? If not, you’re not alone. A new study has found that, while many customers believe ‘robo-advice’ will be faster and more convenient, most borrowers still prefer face-to-face advice from a human.

With a number of online-only mortgage advice services popping up, will technology ever take over from speaking to an adviser?

Two-thirds of consumers prefer to speak to a human about complicated financial products

A new study commissioned by the Council of Mortgage Lenders (CML) has revealed that the majority of consumers still prefer to speak to an adviser when considering complex financial products such as mortgages.

The study, Digital Change and Mortgage Borrowers, has seen the CML and consulting specialist Accenture team up to explore the impact of new technology on the home loan market.

It found that two-thirds of consumers would prefer to speak to an adviser about complex products, because it gives them the opportunity to ask questions and receive a personalised service. However, four in 10 customers believe robo-advice will be faster and more convenient than talking to an adviser.

The research also reveals that two in five customers want a blend of digital channels and others in which they can deal face-to-face with a member of staff.

The CML study found that the biggest opportunity presented by technology was the potential to improve customer experiences and relationships. The biggest challenges were presented by “legacy systems and thinking, and the need for greater collaboration externally.”

As well as considering the role of automated advice in the mortgage market, the report also analyses how evolving technology might be applied to mortgage markets, exploring such areas as digital property searches, customer hubs, automated decision-making, and analytics.

“Cautious attitude” towards technology in the mortgage market

The report comes after a recent study by HSBC revealed a more cautious attitude towards technology in the mortgage market. That study found that just one in give people (21%) would trust a robot to give them mortgage advice.

Mortgage expert Andrew Montlake, says he did not think brokers needed to be too concerned about robo-advice. He told Financial Adviser: “I think with all of these things, the truth lies somewhere in the middle. Yes, it could take a small percentage of the market, but the reality is most customers would want a blend. They will want an efficient way of doing things but still not want to lose the personal touch.”