Digital Mortgages – Thematic Research
Despite the ‘size of the prize’, the mortgage space has largely been untouched by both digitization and disruption. The basic product and its 20+ year term has remained unchanged for over 100 years. In other areas of customers’ lives, products and services have evolved to fit modern lifestyles. People stream music and entertainment content. They make payments, access advice, and apply for products, all from their mobile devices. Yet mortgages – the anchor of the customer relationship, and the primary driver of Net Interest Margin (NIM) – remains an antiquated experience organized around outdated bank processes and regulation, not customer needs. But that’s now changing.
Already in the US the largest originator of mortgages is a non-bank, Quicken Loans, which overtook Wells Fargo in the fourth quarter of 2017. Its digital upstart, Rocket Mortgage, has forever reset consumer expectations with a mobile-first application process, funding more than $5bn of mortgages in its first nine months. In Europe, digital mortgage brokers such as Trussle and Habito are intermediating more sales. Price comparison sites, credit bureaus, and niche fintechs are partnering. Property search sites such as Zillow and Redfin – which sit ahead of banks in the value chain – now offer loan fulfilment. The UK, Europe’s largest mortgage market, now has its first digital-first mortgage lender, Molo.
Gross advances in the UK mortgage market are expected to record a compound annual growth rate (CAGR) of 4.2%, reaching £338bn by the end of 2022 against a historic five-year CACR of 7.6% from 2013 to 2017.
In the UK, 70% of first-time buyers are millennials, most of whom are very comfortable using digital channels. Yet 37% of millennials still indicate they would opt to speak with a bank representative in-branch, testament to just how enduring banks’ reputation as a trusted advisor is after centuries of helping families through big financial decisions.
Digitization drives disaggregation of the mortgage market, with highly specialized new entrants, free from legacy issues, and often able to bypass bank regulation, biting off specific pieces of the purchase process. As these players combine to amass scale and/or plug gaps a variety of new customer journeys and business models become possible.
Reasons to Buy
Understand market size and growth forecasts for key mortgage markets
Identify technology, regulatory and consumer trends driving digitization in the mortgage market
Receive detailed insights regarding new entrants and their business models, and specially, how incumbent banks can protect themselves from disintermediation by those ahead of them in the value chain
Learn how incumbent banks can move beyond core products to build deeper engagement with customers (before and after the mortgage) and identify new revenue opportunities
Table of Contents
Market size and growth forecasts
Mergers & acquisitions
BUILDING DIGITAL MORTGAGE ENGAGEMENT
Focus on broader life journeys
Put mortgage readiness at the heat of digital money management
Embed into non-proprietary bank channels
Optimize for partnerships
Digital mortgage brokers
Digital mortgage lenders and marketplaces
New digital banks
APPENDIX: OUR THEMATIC RESEARCH METHODOLOGY
Get in touch to find out about our multi-purchase discounts
Tel +44 (0) 20 7947 2960
Every customer’s requirement is unique. We understand that and can customize the report basis your exact research requirements pertaining to market insights, innovation insights, strategy and planning, and competitive intelligence. You can also avail the option of purchasing stand-alone sections of the report or request for a country specific report.
Still undecided about purchasing this report?
“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.
GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”
“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”
Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.
Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.