LONDON--(BUSINESS WIRE)--On Tuesday 1 December, Nomis Solutions, a pricing and profitability software solutions provider for the banking industry, and Berkeley Research Group (BRG), a leading global advisory and expert consulting firm, will present their key findings on the major challenges facing the UK mortgage market during a morning webinar broadcast.
Industry experts Tony Moroney of BRG, Damian Young of Nomis Solutions and Roger Miles of BRG will be answering the below questions from 8:00 a.m. GMT, offering their views on the struggle that banks are facing in their attempts to retain existing mortgage customers.
An accompanying white paper will be made available to all attendees while the webinar itself will offer a chance to explore personal variations of insight and assessment of the findings. The discussion will cover:
• What are the key challenges facing UK lenders in today’s mortgage market?
• What are the key trends that will determine the scale of these key challenges in the future for mortgage lenders?
• Focusing on the increased predominance of regulations in the market, what risks must banks consider in their business models today to prevent them falling foul of the law?
• Is the mortgage market sustainable in its current form over the next five years?
The difficult truth revealed by this research is that modern UK mortgage books are blighted by deep-set inefficiencies. In 2007, at the mortgage lending peak, to grow total net lending by £100 required lenders to advance £350. In 2014, to achieve the same net lending growth required £800 of new lending. With base rates remaining low and loan to values falling as a result of rising property prices, the start of a new era in the UK mortgage market is about to happen.
Damian Young, managing director of Nomis Solutions EMEA, stated, “We are seeing some acute challenges in the UK mortgage market—retention, margin reduction, regulation, interest rate environment, just to name a few. Increasing pressure on pricing is squeezing banks’ margins, causing a 'race to the bottom'. There is a rush to grow volumes that is instigating competition in the market. Teaming with BRG puts us in a position to help banks address these challenges and tackle the regulators’ scrutiny to improve customer offerings responsibly and fairly”.
The major providers are, in essence, overlooking a cliff edge where base rates rise and remortgaging increases, leaving their customers free to peruse the attractive rates offered by the market’s new challenger banks. Regulators, keen to facilitate these developments in competitiveness, will be looking to encourage this in order to promote fair pricing as well as promote timely availability of relevant information.
BRG and Nomis Solutions Ltd are collaborating to support lenders though these emerging challenges by providing deep understanding of consumer behaviours and conduct risk, and by applying data modelling and predictive analytics to help lenders optimise their mortgage retention strategies, stimulate margins and simultaneously provide fairer and more transparent pricing for their customers. This webinar will provide an opportunity to explore some of the emerging trends in the UK mortgage market, discuss the key challenges for banks and highlight the approaches to generate solutions for 2016.
Information and registration for the upcoming webinar can be found here.
The white paper, referenced above, can be found here.