The adoption of artificial intelligence (AI) is revolutionising financial services, including the mortgage market, by enabling smarter, faster, and more secure processes.
AI is particularly reshaping the borrower journey, from initial inquiries to loan servicing, as lenders and intermediaries implement solutions that streamline operations and improve efficiency.
Tools like virtual assistants and chatbots now play a crucial role, providing real-time responses and simplifying application processes. Meanwhile, AI-powered document recognition automates data extraction and verification, reducing manual effort while improving accuracy.
Already prevalent in the sector
Recent data from the Financial Conduct Authority (FCA) and the Bank of England shows that 75% of financial services firms already use AI, with another 10% planning adoption within the next three years.
This reflects a growing demand for technology that enhances efficiency, accuracy, and customer service. Notably, there has been a sharp rise in the use of third-party AI solutions, which now account for one-third of AI applications – up from 17% in 2022.
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This trend underscores an increasing reliance on external providers for advanced and cost-effective AI capabilities.
The top benefits of AI adoption, as identified in the survey, include improved data analysis, fraud detection, and cybersecurity. These capabilities translate into practical tools that can quickly process client data, detect and prevent fraudulent activity, and safeguard sensitive information. For intermediary firms, platforms with the scalability and adaptability to integrate AI effectively will enable seamless collaboration with lenders, speeding up approvals and offering more personalised client solutions.
By automating labour-intensive processes such as data entry and document review, intermediaries can focus on what they do best: offering expert tailored financial advice.
This eliminates the burden of overly onerous administrative tasks such as rekeying data and relying on outdated spreadsheets.
Using AI safely
Inevitably, cybersecurity remains a critical challenge, identified as the top systemic risk now and in the future. As digital platforms play an increasingly central role in mortgage operations, protecting data and systems from cyber threats must remain a top priority.
A further challenge lies in understanding AI systems. Notably, 46% of firms admitted to having only a partial grasp of their AI tools, especially when using external models. This highlights the importance of rigorous due diligence when selecting technology partners. Access to ongoing training and specialised support is equally essential to ensure firms maximise the full potential of these tools and the platforms that employ them. Trusted tech partners with deep expertise in the mortgage market can provide the accountability and transparency needed to deploy AI effectively and responsibly.
Looking ahead, the future of AI in the mortgage intermediary sector is promising.
Over the next three years, the industry anticipates significant improvements in operational efficiency, productivity, and cost savings through AI adoption. Automated decision-making, already present in 55% of AI applications, is expected to evolve further, striking the all-important balance between efficiency and human oversight for critical decisions.
As AI platforms and tools continue to advance, intermediaries and lenders must focus on building strong partnerships with tech specialists who understand the mortgage market’s unique requirements.
For example, OMS recently announced an exciting new partnership with Sikoia to further boost mortgage processing efficiency for brokers and lenders across the UK. This will allow users to reduce manual review queues and eliminate time-consuming tasks such as the analysis of bank statements, payslips, and tax returns.
Other key features include automated budget planning, income verification, and employer checks – just one example of the innovative partnerships emerging across the industry.
By adopting AI thoughtfully and strategically, firms can enhance their operations while future-proofing their businesses in today’s rapidly evolving, technology-driven landscape.
Don’t get left behind in the AI revolution – choose your partnerships wisely.
