Copy article

With news of Koodoo creating a tool that can pass a CEMAP, question is will AI replace brokers?

Journalist: Nick Cheek, Mortgage Solutions/Your Money

ended 18. August 2023

  1. How much of a danger to brokers is AI?
  2. How can brokers work with AI to create a better experience?
  3. Will clients accept AI?
  4. Is AI even compliant with Consumer Duty?

7 responses from the Newspage community

Copy all

Copy

Editor
Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
AI, if developed well can revolutionise the mortgage industry. Coherent front-end conversations can help brokers with marketing to improve the quality of applicants, weeding out the people who cannot be helped and linking them to alternative suitable options. In a world that is fast moving towards the benefits of AI, and consumers increasingly engaged with their devices, AI certainly has a place. Sourcing may well develop, and if lending criteria can be harnessed and understood by AI, our virtual buddies could help us place cases with great accuracy.

AI will likely fail on the emotional side. That is why it will never replace us, mere humans. Customers want discussions, options, a range of possibilities, understanding, rapport, opportunities, planning and most of all trust. The machines will fail to deliver this. Working with AI is an exciting opportunity for the industry to evolve, delivering faster, more accurate and better outcomes for consumers. Let's work with it, not against it.
Copy

Editor
Stephen Perkins
Managing Director at Yellow Brick Mortgages
Programme it with enough past-paper questions and textbooks and any AI can pass any exam. The key thing here is that the CeMAP qualifications and equivalent are not fit for purpose for the main skills and attributes that make a great broker. So many clients fall between the cracks in lender criteria and experience and skill and lender relationships are key to success. AI and technology tools have a place in the future of the industry as a tool for brokers to save time and streamline processes but I cannot ever see them replacing the knowledge, experience and relationship-building qualities of human brokers.
Copy

Joe Stallard
Director and Advisor at House and Holiday Home Mortgages
As a broker community, I think we'd be naive to think that AI won't have an impact on the way mortgage advice will be provided. I do believe however that it will work alongside how advice is delivered, with technology predominantly aiding the client journey, rather than replacing the advisor.

Most clients work with us because they value the comfort of getting advice that's bespoke to them from an impartial, industry expert - someone they can talk to and bounce ideas off. They're all intelligent enough to go to lenders directly, however, they value the expertise and support given throughout the process and I don't see that changing. Mortgages tend to be the biggest financial decision in people's lives and having the help of an expert won't be undervalued anytime soon.
Copy

Scott Taylor-Barr
Principal Adviser at Barnsdale Financial Management
Advisers have to sit their CeMAP examination in test conditions without access to the internet and other resources, so if the AI does have access to these resources as part of its functionality, can it be said it passed the test? I am however really pleased to read how Koodoo sees their AI as a support for human interaction between client and professional adviser and they are not pushing it as a replacement for that relationship. The AI-supported professional feels like the right way forward, in almost all areas where AI is being developed, as AI has real value in assessing and migrating information; imagine a day when you load the client's ID, payslips and bank statements into your system and the bulk of the factfind is compelted? Leaving you the time to talk about rates and the client's plans. Then that same AI can move the fact find data seamlessly into the chosen lender application, rather than the broker spending another hour rekeying it all.
Copy

David White
Chief Operations Officer at Simply Lending
ChatGPT-4 passed the bar exam with a score of 297 so the fact it’s passed CeMAP shouldn’t be coming as a surprise to anyone.

Does AI present a danger to brokers? In the immediate future no, but we are at a crossroads.

There are so many variables involved in a Mortgage application at which point if AI can help a broker identify potential issues and filter available options with the click of a button then that can only make the whole process more efficient and robust.

Client acceptance is earned over time and is often generational. Walk into your local bank or building society today and you will witness how technology has already changed the industry. Gone are the days of walking into a busy banking hall with members of staff filling up all cashier positions as this style of service has largely been replaced by online banking and zero human interaction.

How this all falls within Consumer Duty is the million dollar question as if AI gets it wrong who is responsible?
Copy

Christopher Hall
Director at Mortgage Guardian
Whilst AI is getting a lot of column inches at the moment for obvious reasons, it is a tool that potentially will be revolutionary to the mortgage industry if used correctly. Just like fire can cook food, it can also burn your house down.
Algorithms are being created to detect misuse (just ask ChatGPT) and it will not be long before AI is put firmly in its place. So far human advice has not been replaceable and whilst it seems a step closer I can't see it being mainstream, especially as mortgage circumstances are rarely straightforward.

It is always going to be a case of 'Watch this Space' to see where AI goes.

Damn, I just realised I could have asked ChatGPT to write this response. Too late now!
Copy

Rhys Schofield
Brand Director at Peak Mortgages and Protection
Until an AI can deal with a downval, get an out-of-policy case agreed by underwriting or deal with a client being slow with documents I don't think we have anything to worry about. As any broker will tell you, passing a CeMAP exam teaches you diddly squat about how to actually do the job.