As sluggish market conditions continued, and the number of mortgages approved for new house purchases dropped by 4.3% on the year last month, the Financial Conduct Authority (FCA) has called for innovation to help consumers find the best mortgage deal.

Intelenet Global Service director of corporate services Nitin Sahni has argued that digitising the home-buying process is “needed for traditional players to compete with non-traditional players disrupting the market”.

Currently, the UK mortgage application system remains largely phone and paper-based, which slows down the application cycle. Intelenet Global Service revealed that updating these “underperforming and costly” core-banking systems are a strategic priority for traditional mortgage providers as they compete against fintech and challenger banks.

Sahni commented: “Consumers are constantly searching for the best deals to enable them to invest in their dream home as quickly as possible. The last thing a customer wants is for this landmark time in their life to be tainted by long waits and arduous processes to get things moving.

“Revamping the core banking system seem daunting for banks who recognise there is a need to change their system but are deterred from the exorbitant implementation costs. Totally replacing the core business systems which largely underpin all banking operations is not feasible. Firms are looking for solutions to cut costs and processing times which fit alongside these systems.”

The director of corporate services concluded that speeding up processes will help traditional mortgage providers “retain and expand market share while delivering the best possible customer experience”.

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