Nearly five out of 10 brokers (49%) see ‘robo-advice’ and technology as the biggest threat to their business, according to research from Legal & General Mortgage Club.
Legal & General examined broker’s stance on the future of the mortgage market at its recent Mortgage Club Live Conference. This latest figure shows an 11% jump since Legal & General asked brokers the same question at the same event last year, and 14% since 18 months ago.
Customer behaviour is the biggest challenge to their business, 22% of brokers believed, while 20% claimed non-industry disruptors are the main factor. Meanwhile, the lenders were considered a minor challenge to business, one in ten brokers said.
Jeremy Duncombe, director of Legal & General, said: “Instead of viewing technology as a threat, advisers should see it as an opportunity and an enabler to help them meet the changing needs of the market.”
“For many borrowers, the advice of a human broker remains central to their process of securing a mortgage, but advisers cannot ignore the implication of a rising generation of future homeowners who expect the incorporation of technology in all their financial transactions and communications, and in many cases a holistic offering.”
Despite this, Legal & General found that 83% of brokers desired to diversify their business in the next year by adding new services, products or technology to their offering. Only 17% of intermediaries did not have the same expectations for the next 12 months.
Duncombe added: “As an industry we must encourage the rest to not shy away from technology, but instead use it to futureproof their businesses and make their propositions even more appropriate to the next wave of younger borrowers.”