Fignum has launched a new research report arguing that UK mortgage lenders now see inaction on technology as a greater risk than pursuing change.
The inaugural Mortgage Tech Pulse 2026 is based on qualitative interviews with more than 40 lenders, spanning high street banks, building societies and specialist lenders, and examines how firms are using technology, data and operational strategy across origination, servicing and risk management.
The report suggests lenders are under growing pressure to modernise as they contend with regulatory change, tighter margins and changing borrower expectations. According to Fignum, technology is no longer being treated as an optional improvement, but as a core part of maintaining capacity, controlling risk and delivering acceptable customer outcomes.
Among its main findings, the report says lenders are continuing to invest in large-scale transformation programmes, particularly in origination and servicing, although progress is often slowed by legacy platforms and supplier limitations. It says many firms now regard preserving the status quo as carrying greater risk than change itself.
AUTOMATED UNDERWRITING LIMITATIONS
On data and decision-making, the report points to broader use of third-party data, automated valuation models and enhanced management information to support quicker and more consistent decisions. Even so, it says automated underwriting is still relatively limited, with human judgement remaining central because of case complexity and regulatory expectations.
Fignum also identifies operational efficiency as a key area of focus. While the idea of a single source of truth is widely shared, the report says fragmented systems, uneven integration and questions over data ownership continue to hold lenders back. It adds that technology investment is more often being used to redeploy headcount than reduce it.
Regulation remains one of the main drivers of technology spending, according to the research. Firms are increasingly using technology to evidence customer outcomes under Consumer Duty, although reporting automation varies considerably between lender types.
The report also finds that artificial intelligence is beginning to play a larger role in areas such as fraud detection, document processing and operational support. However, adoption is still cautious, with most lenders described as fast followers rather than early movers, placing greater emphasis on explainability and risk control than full automation.
Steve Carruthers, growth director at Fignum, said: “This report reflects a market that understands the direction of travel but is still grappling with how best to execute. Technology is now fundamental to everything lenders do, from customer experience through to risk management.
“The challenge is no longer whether to change, but how to do so without destabilising core operations. Agility will define success in the years ahead.”
Lisa Neary, vice president, new business development, UK BFSI at Firstsource, added: “What this research makes clear is that technology strategy is rarely the problem. Execution is. Lenders are trying to run transformation alongside business as usual in an increasingly complex environment.
“The cost of standing still now exceeds the cost of change, but poorly sequenced change introduces real operational and regulatory risk.”
Charles Roe, director of mortgages at UK Finance, which is hosting the launch webinar, said: “The Mortgage Tech Pulse highlights just how quickly the operating environment for lenders is evolving. Technology, data and execution capability are now central to delivering good outcomes for borrowers and supporting a resilient mortgage market.
“We are pleased to host the launch discussion and bring these insights to a wider industry audience.”
Fignum is launching the report through a live webinar hosted by UK Finance, where senior industry figures are due to discuss the findings and what they may mean for lenders, brokers and technology providers.
