Nearly 20% of Brits prefer classic calls over digital mortgage tools

By Gloria Methri

New research from finova reveals insights into homeowners’ dissatisfaction with digital mortgage tools. Despite the rise of innovative technology, 19% of homeowners find that the digital features offered by lenders fall short of their expectations.

Additionally, 42% still believe that phone conversations are the most effective way to address mortgage queries, reflecting a strong preference for traditional communication methods. The value of the ‘human touch’ is apparent when considering attitudes towards specific digital tools, too.

This research report ‘Homeownership in the digital age’ published by finova—the UK’s cloud-based mortgage and savings software provider—surveyed over 500 borrowers and 500 brokers to pinpoint opportunities for lenders to enhance their digital solutions and better meet evolving consumer demand.

Preference for traditional methods

The study highlights a notable reluctance towards newer digital tools: only 13% of borrowers find chatbots useful, and just 12% view virtual consultants with mortgage advisers as effective.

However, certain digital features are valued, with nearly a third (30%) of homeowners finding the online application process most beneficial and 23% appreciating digital document signing. These features are particularly popular among female homeowners and younger demographics, likely due to their convenience and efficiency.

Although artificial intelligence (AI) has become increasingly commonplace in the last two years, just 13% of borrowers enjoy using chatbots, and only 12% find that virtual consultants with mortgage advisers are productive.

Chris Little, Chief Revenue Officer at finova, said, “Our research highlights some significant gaps in the market, confirming that lenders’ tech still has some way to go before it completely aligns with borrowers’ expectations. While the sector has upped the ante in recent years and is increasingly adopting more digital solutions, there is still room for improvement.

“A considerable portion of borrowers still value personal interactions, and there’s no reason why they have to forgo the human element to reap the efficiency benefits that come with digital solutions. The popularity of tools like online applications and digital document signing demonstrates that there is a real appetite for technology when done right. Still, we need to take stock of how preferences vary across the board if we want to implement tech that is here to stay.”