Don't lose meaning in rush for tech

by Adam Smith07 May 2012

An industry analyst has warned brokers to ensure the rush to provide faster, more efficient service does not eclipse the need to properly educate clients.

Industry consultant and Futurology principal Kym Dalton has told the National Mortgage Brokers conference in Hamilton Island that the introduction of new technology in mortgage broking could have potential downsides.

Dalton said while services such as electronic lodgements and the ability to order online valuations have made brokers faster and more efficient, this speed could detract from the broker/client relationship.

“I’m wondering if there’s a negative impact in there as well. In the rush to raise the level of technology in an attempt to better service our customers, I’d like to raise the warning flag to watch that meaning isn’t lost in the whole race for speed and adoption of new technologies,” he said.

Dalton urged brokers to ensure that clients are properly educated about the complexity of mortgage products. He suggested that many consumers are ill-informed about home loan products, and that brokers must take the time to fully educate their clients.

“Whilst we’re in a great quest for speed in adopting this technology, mortgages are reasonably complex things and you want to make sure your customer actually understands the nature of their obligations when you embrace this technology,” Dalton said.

Such education goes beyond NCCP disclosure obligations, Dalton indicated. He argued that brokers have a duty to inform their customers beyond the mere letter of NCCP regulations.

“Disclosure and comprehension are not synonyms,” he said.

While Dalton argued that the ubiquity of technology in the mortgage sector could have some negative impacts, he rubbished the idea that technology could see brokers driven from the industry.

“Is technology going to make brokers obsolete? No,” he said.

COMMENTS

  • by Broking/Planning 7/05/2012 11:54:08 AM

    There is no issue in this office with the education of our Clients and the respective mortgage products and financial services we offer and quite frankly I'm dismayed, disappointed and peeved at the suggestion that Mr Dalton has raised.

    I'd suggest he talk to those who are running/working Broking or Financial Services Practices. If Mr Dalton chooses to take a look at the turn around times that result from the present offering of dodgy software, he'll soon see the use of the word "speed" is a misnomer when used in the above context.

    We're not after pie in the sky technology, we just want software that Works Consistently Every time we use it. The latest offering from PLAN Australia with Podium is Still Pathetic, despite Podium being tweaked, caressed or bullied with now countless updates.

    My suggestion is a simple one, if the Aggregators, Tech people, Futurologists and Analysts take care of their World, the Brokers and Planners of this industry will take care of ours. Our Clients and the maintenance of our relationships with them is our responsibility.