Digital Transformation of mortgage approval process to be driven by lenders, research finds

30 Sep 2016

Digital Transformation of mortgage approval process to be driven
by lenders, research finds

30th September 2016

New research[1] commissioned by EDM Mortgage Support Services (MSS) has highlighted that stakeholders such as valuers and surveyors will look to mortgage lenders to spearhead the digital transformation of the mortgage approvals process.

EDM MSS’ latest industry survey, which was primarily completed by valuers, focused on the relationship between valuers and lenders and the differentiating factors that lenders look for when selecting partners to fulfil their property valuation requirements – including the role of digital technologies.

The research found that the main areas respondents perceive lenders focus on when selecting valuation partners are: responsiveness (cited by 74%); accuracy of reporting (70%); and capacity (54%). Use of technology (6%); information management (6%) and use of data (12%) are seen as the least significant. In addition, the top three differentiators between valuation firms are price (63%); speed of turnaround (55%); and relationships (51%). In contrast, use of technology, information management and use of data were ranked down the list.

Asked specifically about what they want to see from technology solutions, the top outputs respondents would most value are: cost reduction (55%); enhanced back office processing (47%); improved auditability (45%); and management information/ business control (38%). The least important was marketability (5%).

Joe Pepper, Managing Director, EDM MSS, commented: “We believe that the research highlights two key points. Firstly, the significant opportunity for the adoption of technology and digital technologies. The reality is that technology and a focus on digital solutions – to digitally transform the mortgage approvals process – can address many requirements such as speed of turnaround, better cost management, reporting accuracy, capacity issues, process efficiency and scalability.

“Secondly, that the impetus for technological change and the adoption of digital solutions that can deliver the required levels of speed, responsiveness and accuracy is something that market participants will look to come from lenders. The overarching role that lenders play end-to-end in the mortgage process puts on the onus on them to spearhead the adoption of new technology.”

1 Online survey conducted in August 2016 among 50 respondents (54% of the base were valuers, 8% panel managers, 12% both valuer and panel manager, 12% from lenders; and 14% as other)


About EDM Group: Headquartered in London, EDM Group employs over 1,400 people across the UK and US. For the financial year 2014/2015, the firm reported an annual turnover of £70 million. In September 2015, EDM Group was ranked 43rd in the annual Sunday Times Hiscox Tech Track 100 league table, up from 57th in 2014 – a reflection of the fast-growth success of the firm and its position as a leading, global information management and digital transformation specialist. In June 2016 EDM Group was ranked number 1 in the annual Sunday Times HSBC International Track 200.

EDM Group combines best-practice consulting and technical experience to develop bespoke outsourced solutions for a range of clients across the private and public sectors. The success of the firm has been built on its powerful Digital Mailroom document scanning and storage capability, which continues to be a core, in-demand product offering. EDM Group’s growing client base spans sectors including financial services, automotive, professional services, private healthcare, and the public sector (central and local government, and NHS). Specific clients include HMRC, Legal & General, Friends Life, Bupa, Avis Budget EMEA Ltd, Nationwide Building Society, Barclays, Santander, Companies House, Lloyds Banking Group, Grant Thornton and healthcare providers including NHS Trusts and BMI hospitals. EDM Group is accredited to ISO standards for Information Management Systems (ISO27001), Environmental Management (ISO14001) and Quality Management (ISO9001).

About EDM Mortgage Support Services: EDM MSS offers a range of technology products to help clients manage the various stages of the mortgage process.  It enables lenders to receive and exchange data with third parties such as surveyors, solicitors, brokers and asset managers securely and cost effectively. The platforms, including PRISM (Portal for Risk Information Sharing in Mortgages), Residential and Commercial Valuation Exchange and LPA Exchange support key transactions within mortgage lending.  EDM MSS’ customers include Nationwide, Santander, Bank of Ireland, Barclays, One Savings Bank, Virgin Money and Lloyds Banking Group.

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