Whilst certain parts of the financial industry, such as payments, seem to provide plenty of scope for innovation and change, other areas such as mortgages, don’t appear to provide much room to change.
However,Â UK tech startupÂ habitoÂ has jumped on the latest fintech bandwagon, artificial intelligence (AI), and has launched what it reckons is the worldâ€™s first AIÂ Digital Mortgage Adviser (DMA) allowing consumers to discuss their mortgage needs from any connected device, 24/7, without requiring a human broker.
Built using AI technology and habitoâ€™s algorithm, the DMA marries all the elements of a customerâ€™s financial life (e.g. employment, salary and personal life plans) with real-time market mortgage rates to calculate an indicative monthly payment. The DMA explains the impact consumersâ€™ decisions will have on each mortgage configuration as a traditional mortgage broker would, but in a fraction of the time (average 10 minutes). Habito has the ability to search hundreds of products (versus a handful), so once the advice is complete consumers can be sure theyâ€™re on the best mortgage for them, which they claim couldÂ result in savings of thousands of pounds per year.
In designing the new system, habito apparently analysed hundreds of advice interviews in order to understand what consumers needed and what formed the basis of informative advice. As a result, the DMAâ€™s chat-like interface provides what it says is an unbiased, conversational experience, without the need for lengthy in-person queues, waiting on hold or paying a premium for advice.
â€œFinding the right mortgage product in the UK is like finding a needle in a haystack. Britons are crying out for some innovation and clarity in an outdated and overwhelming mortgage market,â€ said Daniel Hegarty, CEO and Founder, habito. â€œOur digital mortgage adviser is a huge step forward in making mortgage advice accessible for consumers in the way they need it most: unbiased, always available and most importantly free.â€
Habitoâ€™s digital mortgage adviser is a direct response to the FCAâ€™s Financial Advice Market Review Report calling for greater, more accessible financial services advice for British consumers. Habito plans to roll out additional interactive features later this year, such as remortgage alerts, that will continue to optimise the mortgage application process for consumers across the country.
So, would you take advice from what is essentially a computer programme, or do you prefer to speak to a real person when making such important decisions? Let us know your feelings in the comments below.