More2life’s latest research has found that 36% of advisers think the later life lending market will choose technology over paper-based processes when the industry returns to more normal conditions.
This feeling was the strongest among advisers working at larger firms, with 67% of respondents who cited this answer working in firms with 31 advisers or more.
The use of technology has already begun to play a more important role in advisers’ day-to-day work. For example, the use of video conferencing platforms such as Zoom has increased exponentially among advisers over the last year due to various lockdowns and social distancing regulations. Indeed, more than four in five advisers (84%) have made greater use of video conferencing apps to communicate with clients, while a similar number (81%) have done the same to maintain rapport with colleagues.
Advisers have also been using lender services more during the Covid-19 crisis. Over the last 12 months, 36% have increasingly used lender portals to support them with equity release business, marking an uptick compared to the 19% of advisers who said the same at the start of the pandemic.
45% of advisers have been engaging with lender support teams – either those that are telephony or online based – for the same purpose, while 30% say their use of sourcing systems has increased during the crisis.
Reliance on social media platforms has also increased as advisers cope with remote working practices. 23% of advisers say they have used professional channels such as LinkedIn more often during the last 12 months, while 20% say their use of personal platforms like Facebook has gone up over the same period.
When asked what would be most beneficial to their equity release business over the next 12 months, nearly a fifth of advisers (17%) cited the use of technology, while only 10% saw the adoption of digital tools as their biggest challenge in the next year.
By contrast, nearly one in three advisers (29%) said that being unable to provide face-to-face advice would be their biggest challenge. Again, this highlights the role that technology could play in facilitating communication between advisers and clients, particularly if social distancing restrictions remain in some parts of the UK.
Dave Harris, CEO at more2life, said: “Technology has clearly proven itself to be a key asset to advisers’ business during the Covid-19 crisis. It has been really encouraging to see the majority of advisers using digital tools like video conferencing platforms and lender portals to support their clients and ensure high levels of customer service, particularly during a very challenging period. Maintaining this momentum will become even more crucial as we emerge from the crisis and identify where we can improve processes for lenders, advisers, and customers alike.
“Now is the time for equity release lenders and advisers to consider the technology they can implement that can further strengthen their business over the long-term. Digital-first processes are set to be the landmark of the later life lending market post-Covid, but only if lenders, advisers and other key players take the necessary steps to put these in place and drive change across the industry.”