CHAPTER 1: SOURCING SYSTEMS
Sourcing systems are at the core of a mortgage broker’s toolkit. There are three providers covered in this report, with several offering more than one platform. Despite this, advisers will often use other systems for specialist sourcing.
Iress did not contribute to this edition, despite supplying data for the previous report. Last year’s entries are included for reference.
1.01 ADVISER RESEARCH
The data shows 87% of advisers use one or two sourcing systems, down from 98% in 2020. The fact that brokers use more than one system suggest they use a secondary system for sourcing of specialist products (e.g. second charges, equity release) as and when they receive such an enquiry.
Figure 1.01: How many sourcing systems do you use?
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19% of advisers use an alternative sourcing system at least once a month, which would bolster the idea that they are using them for infrequent, specialist product searches.
Figure 1.02: How often do you use an alternative sourcing system?
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This year’s results are largely the same as those from 2020. The only significant change is that ‘criteria functionally’ moved from third to second most important factor. This reiterates how important criteria platforms have become in a relatively short period of time.
Several advisers stated that speed of use (without unnecessary data entry) was an important factor to them.
Figure 1.03: What are the top two most important factors when reviewing a sourcing system?
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The vast majority (92%) of advisers have been using their current sourcing system for at least two years. This is an increase of nine percentage points on last year’s survey.
This suggests that advisers are either happy with their chosen system or unable to change their sourcing platform due to their network’s requirements.
Figure 1.04: How long have you used your current primary sourcing system?
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The proportion of mortgage brokers who never review their sourcing requirements is down from last year’s survey (38% to 46% in 2020).
While other figures were broadly the same as before, there was a six-percentage point rise in the number of advisers who review every six months.
Figure 1.05: How often do you review your sourcing system requirements?
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44% of advisers surveyed last year said they may switch to a different sourcing system over the 12 months.
However, only 4% of those surveyed said that have been using their current system for 12 months or less which would suggest the advisers in question did not make a shift despite contemplating it.
With all of the disruption caused by the coronavirus, it would not be a surprise to find that brokers did not prioritise technology platform changes amid all the upheaval.
Figure 1.06: How likely are you to switch your sourcing system over the next 12 months?
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“Knowledge Bank has been the biggest game changer in the industry. When this is integrated with product sourcing it will be great” – adviser comment
42% of brokers say it is of some degree of importance that they can source bridging loans, second charges and/or later life lending products via their main sourcing system.
Figure 1.07: How important is it for your system to offer integrated sourcing for bridging loans/second charges/equity release?
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58% of respondents said that the sourcing system they currently use cannot source bridging loans/second charges/equity release. This is down by 10-percentage points on 2020. Half of the systems can actually source products in all these specialist sectors (see Figure 1.09).
Figure 1.08: Can your current system source bridging loans/second charges/equity release?
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Figure 1.09: Product areas a user can access
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* 2020 survey entry
All of the three systems featured can compare costs of remortgage products to second charges, but 42% of advisers say their sourcing platform cannot do this. The next iteration of this report will look into this anomaly.
35% of mortgage brokers do not believe it is important to be able to compares remortgages with seconds.
Figure 1.10: Can users compare remortgages to second charges?
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* 2020 survey entry
Figure 1.11: Do advisers say their current system can compare remortgages to second charges?
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Figure 1.12: How important is it to advisers to be able compare remortgages to second charges within a sourcing system?
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88% of brokers believe that a truly end-to-end platform, where all searches and aspects of the customer journey are managed, is important. (Advisers were not asked this question last year.) However, just 50% of brokers think that any single system will ever be able to effectively source all types of specialist lending product.
Figure 1.13: How important is the idea of a truly ‘end-to-end’ mortgage platform?
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Figure 1.14: Do you think any single system will ever be able to effectively source all types of specialist lending product?
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The majority of advisers surveyed (62%) do not think that sourcing on a mobile phone is important. This would suggest that desktop or laptop sourcing is the norm and is preferred by brokers.
Figure 1.15: How important is it to be able to access a sourcing platform on a mobile phone?
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Two-thirds (69%) of advisers who took part in the research for this report are Directly Authorised. Of those who are Appointed Representatives, 67% say they would use a different sourcing system if they could.
That said, only 13% of advisers say they have actually switched network because of the system they were compelled to use.
Figure 1.16: Are you Directly Authorised or an Appointed Representative?
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Figure 1.17: Would you use a different sourcing system if your network allowed it?
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Figure 1.18: Have you ever switched network because of the sourcing technology you were required to use?
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This data was collated in January 2021. Trek Publishing Limited accepts no liability for loss or damage to material submitted for publication.
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