More than two-thirds of mortgage lenders are uncertain about their capacity to implement emerging technology, according to new research unveiled at the Future of Mortgage Servicing conference at the Belfry.

The survey, conducted by Target Group and Phoebus Software, asked 100 C-suite executives how confident they were in their organisation’s ability to deploy new technology successfully. Only 31% said they were confident they had the necessary skills and strategies in place.

Almost a quarter of respondents, at 23%, said they were attempting to build capacity, while a further 44% admitted they lacked both the resources and expertise required. A final 3% were unsure.

INDUSTRY PRESSURES GROW

Pete O’Connor, chief executive of Target Group, said the findings reflect the accelerating shift in consumer expectations. He said: “Over the past few years, we’ve witnessed significant shifts in the mortgage landscape including the rise of digital-first borrowers.

“Today’s mortgage customer expects more than just a transactional relationship: they’re digitally savvy – they want transparency, speed and personalised experiences.

“This has driven a wave of digital innovation across the industry. As a servicing provider, Target Group has seen how these changes are reshaping the way we engage with customers and deliver value.

“Servicing platforms are having to become smarter, more intuitive, and increasingly integrated with data analytics to anticipate borrower needs and behaviours.

“In the future, we’ll see a continued convergence of technology and customer-centricity. AI, open banking, and digital-first platforms will drive efficiency and personalisation.

“The challenge – and the opportunity – is to ensure technology enhances, rather than replaces, the human touch.”

IMPLEMENTATION STILL A MAJOR HURDLE

Adam Oldfield, chief executive at Phoebus Software, said many firms remain unsure how best to approach rapidly evolving technology. He said: “As a software provider, we recognise that technology is an important enabler of growth for businesses.

“However, rapid advances in AI and the proliferation of systems available has left many in the mortgage industry lacking confidence in their ability to implement the right technology successfully.

“Our message to those companies is not to implement tech for tech’s sake. It’s tempting to invest in the latest shiny new platform, but technology should always solve an existing problem or make a process more efficient.

“Once you’ve got a solid use case that supports your existing strategies, and identified the right partner, then the implementation should be a lot easier.”