The Intermediary – February 2025 - Flipbook - Page 49
S E C O N D C H A RG E
Opinion
Embracing digital
transformation in
secured lending
T
he secured loans
market is undergoing
a dynamic
transformation, driven
by the demand for
faster, more efficient,
and customer-centric processes. In an
industry where speed and precision
are critical, digital innovations like
e-signatures, automated affordability
assessments, and streamlined
document handling are no longer
optional – they are essential.
Faster turnarounds
Speed has become a key differentiator
in the secured lending space. Brokers
and customers alike are prioritising
lenders that can offer quick decisions
without compromising accuracy. The
traditional model, reliant on extensive
paperwork and manual checks, is
being rapidly replaced.
At Central Trust we’ve seen a
significant reduction in processing
times by streamlining the submission
and underwriting process. Cases
submied before 1pm oen receive
a same-day response, with some
applications even reaching binding
offer status within the same day.
Lenders are optimising internal
workflows, embracing automation,
and rethinking how applications are
managed to deliver quicker outcomes.
Transforming the journey
While e-signatures have been around
for years, their role in secured lending
has become pivotal. They’re not just
a convenience, they’re a catalyst
for efficiency. The ability to e-sign
mortgage deeds has eliminated postal
delays, reduced the risk of document
errors, and significantly shortened the
time to completion.
Since introducing e-signatures,
Central Trust has observed a
measurable improvement in
completion times. Mortgage deeds
that once took several days to process
can now be finalised in hours. This
isn’t just a win for lenders – it’s a
game-changer for brokers who face
tight deadlines, and for customers
who expect seamless, digital-first
experiences.
Customers are increasingly
comfortable with digital transactions,
and lenders that fail to meet these
expectations risk falling behind.
The industry’s growing confidence
in the security and legal validity of
e-signatures has paved the way for
widespread adoption.
Affordability assessments have
traditionally been a boleneck. The
need to collect detailed household
expenditure data, coupled with
manual verification, oen led to
delays and inconsistent outcomes.
Enter automated affordability
assessments – a trend reshaping the
market. Since its launch, Central
Trust’s fast-track affordability
model has seen 57% of eligible
applications pass this streamlined
process, dramatically reducing
processing times.
The system focuses on key
expenditure areas such as Council
Tax, childcare, and service
charges, eliminating the need
for comprehensive household
expenditure forms in many cases.
By relying on data-driven models,
lenders can make objective, compliant
affordability decisions quickly and
accurately. For brokers, this means
fewer information requests, faster
decisions, and more for relationships.
Strong partnerships
The importance of strong brokerlender relationships remains
unchanged. Brokers are the linchpin,
DEBBIE BURTON
is chief executive
at Central Trust
and the goal of digital transformation
should be to enhance this relationship,
not replace it.
At Central Trust, feedback from
broker partners has been instrumental
in shaping our digital strategy. A
collaborative approach ensures that
our digital innovations are not just
technologically advanced, but also
aligned with the real-world needs of
brokers and customers.
What’s next?
The market will likely continue
its trajectory towards greater
digitalisation. Emerging technologies
such as open banking, AI-driven credit
assessments, and even blockchain
for secure document handling are on
the horizon.
With rapid change comes the need
for continuous adaptation. Lenders
must remain agile. It’s not just about
adopting new tools, but embedding a
culture of innovation.
At the heart of these changes is
a simple truth: whether it’s faster
application processing, smoother
customer journeys, or more efficient
broker support, the ultimate goal is to
deliver beer outcomes. In 2025, that
means embracing technology not as a
buzzword, but a fundamental.
The secured lending market is at an
exciting crossroads. The convergence
of technology and customer demand
for efficiency is driving meaningful
change. Lenders that embrace this
transformation – investing in digital
tools, streamlining processes, and
strengthening broker relationships
– will not just keep pace with the
market; they’ll set the standard for
the future. ●
February 2025 | The Intermediary
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