The mortgage market is going through a transformative state which could see established players pushed out. However, there are benefits for those that are agile enough to capitalise on them.
Retail banks are facing strong competition in the mortgages market from new players who have identified a gap between customer expectations and reality which raises the question, can banks win the fight for home loan customers?
There are a number of advantages that can benefit large players in this environment, including the ability to continuously create more relevant products, low cost of funding and improved targeting capability from digital innovation and artificial intelligence.
We are now noticing that the mortgages market landscape is changing in favour of both established large lenders and their customers. Behind this shift is a blend of favourable regulation – specifically the Second Payment Services Directive (PSD2) and Open Banking – innovation and demographic trends.
We outline how changes in the mortgages market will accelerate its current ‘transformative state’ and how the larger players can capitalise on this acceleration.
You can read our full report: Buyer’s market. In the evolving UK mortgage market, customers could be the ultimate winners.