A new combined solution for mortgages and loans from Temenos and IRESS allows lenders to offer a fast, flexible service to customers without the disruption of a major platform replacement, write Paul Cole and Des Noctor.
The last big innovation in mortgages was probably Virgin's One account. Launched in 1997, it was the UK's first offset mortgage where interest was calculated daily taking into account a customer's balances across Virgin's portfolio of products including mortgage, current account and savings. That's 20 years ago and technology, culture and customer expectations have changed – it's time lenders changed too.
In today's I-want-it-now culture, waiting two weeks for a mortgage approval is just not cutting it and yet, according to the latest IRESS Mortgage Efficiency Survey, less than half of offers (44%) are made within this time. Many mainstream lenders, still feeling the effects of the MMR, have been slow to invest in this area, put off by the apparently high cost and massive disruption. Meanwhile, challenger banks are making the most of 'new kid on the block' agility and are making inroads.
To help lenders meet the challenges of today's market, Temenos and IRESS have joined forces to provide a new solution combining IRESS' MSO with Temenos' powerful digital back office. Streamlining the entire mortgage journey from end to end, the combined benefits of IRESS and Temenos bring significant efficiency savings, along with improved compliance processes and oversight.
The solution brings all the benefits associated with a full platform replacement, yet with much greater flexibility due to its modular deployment. Lenders can adopt whatever they need when they need it and won't face an expensive and disruptive rip out and rebuild for future enhancements through the joint offering. What is more, it can be hosted in the cloud and charged appropriately, bringing the technology within the reach of smaller as well as larger lenders. So where smaller lenders might have balked at the cost of upgrading their legacy systems, the Temenos / IRESS solution offers a cost-effective option to make this step forward.
Single source of data
As we all know, accurate and reliable data is an absolute requirement for businesses today. To this end, once captured, the combined solution ensures a single source of customer data, delivering a seamless process to complete an application and manage an account.
This enables significant efficiency saving and reduces the cost of originating a mortgage. For providers big or small, that can add up to huge savings. Plus, as an added bonus, the digitisation of the process also cuts down on printing and postage costs.
The single source of customer data across the integrated solution also provides lenders with the client's full financial picture – including all loans, savings and spending – allowing more personalised and better targeted communications using the Temenos real time marketing engine. This full picture can be further extended to include balances from other institutions as the Temenos solution is fully PSD2 compliant.
Another benefit is that IRESS' new architecture is event driven, so successive processes can be triggered as events are achieved. This makes tracking easier and automatic, keeping all parties and listening systems informed throughout the application process, and when combined with IRESS connectivity can significantly cut the number of case enquiry calls from brokers.
The complete package
The high level of integration gives lenders an out-of-the-box solution for mortgages from sales and origination to servicing such as assessing arrears, calculating interest and giving balances in real time. It also means that users quickly get the full benefit of any new features developed by one or the other.
IRESS' MSO provides APIs allowing lenders to quickly and easily develop their own new services that differentiate them from their rivals in a cost effective way.
IRESS' MSO is the market leading mortgage sales and originations product in the UK while Temenos is the number one core banking and internet banking provider worldwide with more than 30 clients in the UK & Ireland. Our clients know that they are part of a huge innovative community that is driving banking and financial services into the 21st century.
The combined Temenos/IRESS mortgage and lending solution allows lenders big and small to provide a fast, modern service to their customers in an affordable way. It's what they've been waiting for.
Des Noctor is Regional Director for UK and Ireland at Temenos; Paul Cole is head of business development at IRESS.
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