But human oversight remains indispensable, broker says
The adoption of artificial intelligence (AI) in the mortgage broking sector is gathering pace, with brokers increasingly exploring its potential to streamline processes and enhance client service.
“The use of AI among mortgage brokers is certainly a growing trend, and one that has potential to help us save time, find more customers, and guide them through the mortgage process faster,” said Lee Trett (pictured top), director and co-founder of brokerage Echo Finance. “Its potential as a marketing tool is also huge in our sector.”
AI’s most common application to date has been the automation of routine tasks, particularly the analysis of lending criteria and the rapid identification of suitable products for clients. “Some brokers are using AI to crawl lending criteria from across the market and present their client with a bespoke list of possible lenders and products very quickly,” Trett said. “There is genuine time-saving potential here, but I’ve heard a few advisers raise questions around accuracy.”
Some industry professionals remain cautious about the limitations of current technologies and the enduring need for human oversight. Trett emphasised that AI is not yet able to operate independently in the advice process. “We’re not at a point where we can be confident that AI will correctly match a customer with their ideal solution” he said. “It still, and will always need, a human adviser at the centre of the process to cross-check what AI is presenting to the customer, and to maintain empathy and trust.”
The evolving role of brokers in an AI-enabled environment is also prompting new expectations from clients. “It’s a powerful new toolset that all mortgage brokers need to know how to master, even if their brokerage hasn’t adopted it yet and is proving resistant,” Trett told Mortgage Introducer. “AI is evolving so quickly and becoming integrated into so many types of software and services that brokers will need to be savvy with it. We might even start to get clients quizzing advisers on AI and to what extent it will be used during their application.”
He noted that brokers must be prepared to explain the use of AI to clients and justify its application on a case-by-case basis.
“I had a conversation recently about the use of AI for later life mortgages and equity release, and there are some concerns that older borrowers might be more resistant to AI being used to help with their applications,” Trett related. “Many from the older age bracket will be less familiar and perhaps sceptical of AI if the alternative is having a human adviser carry out every part of the process manually. We may reach a point where advisers choose whether to access support from AI on a case-by-case basis, depending on the client’s attitude towards it.”
Looking to the future, Trett expects AI adoption to accelerate, with improvements in accuracy and efficiency. “There are gains to be made here, as I see brokers having more capacity to serve extra customers due to automating things they are currently doing manually,” he said.
However, like many in the mortgage broking industry, Trett does not foresee AI replacing human advisers. “For me, there is no credible threat to jobs in the mortgage industry from AI,” he stated.
“Although more and more tasks are becoming automated, this might mean firms have to recruit more advisers, as there will always need to be a person at the centre of mortgage advice to provide trust and empathy; these things will always be pillars of our industry.
“Having said that, I can see some roles in this business being forced to evolve. For example, administrators might end up spending a lot of their time working with AI systems and entering chat prompts, rather than providing manual support to advisers.”
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