Artificial intelligence surge just another step in industry’s evolution, says broker
Artificial intelligence (AI) may be transforming industries and revolutionizing day-to-day work for countless Canadians, but it’s not likely to replace mortgage brokers anytime soon.
That’s according to Pinsky Mortgages owner Eitan Pinsky (pictured), a Vancouver-based broker who told Canadian Mortgage Professional many clients are always likely to value the experience of consulting with a human advisor – even if AI offers the right options for other borrower types.
Many brokerages, he said, are often “higher touch” physically than mortgage giants and rate discounters, meaning they and their customers communicate via phone calls and Zoom meetings more than others who have a straightforward mortgage need.
“I think for clients who want to be completely hand-held and made to feel comfortable in the process, it’s very difficult to make yourself feel comfortable without a reassuring voice: ‘Mr. and Mrs. Client, I want you to let you know that your file is awesome. There are no problems with it. We’re going to get you an approval in two days,’” he said.
“It’s about the feeling, and you can’t really automate human interaction. I think there’s going to be a certain proportion of people – it could be 50%, it could be 75% – who really want to speak to a human and who want to have that connection with them to be able to feel comfortable in the process.”
Certain customers will always rely on brokers
That’s not to say all consumers won’t gravitate towards new technology and digital solutions. “There are obviously those who don’t care as much and just want things to be [quick],” Pinsky said. “They want it to be done online and they don’t need that comfort.
“Maybe they’re doing it for the second time or the third time. Maybe they’re in the industry or don’t need to have their hand held. But for a certain portion, there’s definitely going to be a lot of reliance on human input.”
The sudden surge in prominence of AI since the launch of ChatGPT by OpenAI in late 2022 sparked existential questions about the future of many industries and professions, and led many to wonder whether automation was set to turn the mortgage industry upside down.
Pinsky, though, believes it’ll help the industry continue to evolve without fully upending brokers’ careers. The profession has been here before, he pointed out, with online solutions and digital advancements having failed to shake brokers before.
“Just like any technology, I don’t think any of it is going to be negative per se,” he said. “I think it’s how you use it. So will it be positive? Yes, we’re going to be more efficient. We’re going to be able to provide more people with advice.
“We’re going to lose, in some cases, some of the human interaction. But not everybody would want that.”
Just another step in the mortgage industry’s evolution
The onset of the COVID-19 pandemic in March 2020 heralded a work-from-home revolution in Canada, with scores of mortgage brokerages across the country shuttering their offices and instead seeing their agents and brokers set up stall in their own kitchens and living rooms.
That meant a fundamental change in many aspects of the mortgage process as buyers connected with their advisors over Zoom calls and Teams meetings instead of in person.
It also brought about an evolution in the way borrowers put their name to mortgage documents, with digital solutions becoming the de facto arrangement over ink-and-paper signings.
Pinsky offered that as an example of a development that’s ultimately been positive for the industry, even if some brokers and borrowers were initially unsure.
“Even after COVID, we still do everything online because it’s more efficient and because a lot of people don’t want to come to an office to sign mortgage documents. They’d rather sign them over Zoom, Docusign and SignNow,” he said. “So every technology has a place. It’s just how you use it.”
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