IntroductionIn such a competitive market, innovation is an important way in which UK lenders can differentiate themselves from others in order to gain custom.
What recent innovations in the UK and abroad can lenders use to their advantage? This briefing assesses such innovations and whether they could be relevant for lenders.ScopeDiscusses the key UK innovations by mortgage lenders over the past year.Assesses the new innovations from abroad and whether they could be implemented in the UK.Provides insight on what lenders should take into account to assess the implementation of innovation.HighlightsKent Reliance Building Society's intergenerational mortgage created a slew of debate when it was first released.
While many lenders have stated that they are not currently looking to offer such a product, if the product were to catch on with consumers, Datamonitor believes that more lenders would be willing to offer it.Canadian Imperial Bank of Commerce builds up loyalty by tying its mortgage to the well-known Aeroplan scheme.
Expanding the provision of loyalty schemes is a real possibility for lenders.
Indeed, UK lenders have not as yet tied a mortgage to any large, nationwide loyalty rewards scheme.Ultimately, innovation is only worthwhile if it adds value to potential customers.
Indeed, a lender's proposition albeit innovative must be competitive.
Lenders should assess whether an innovation is likely to see demand, that it is easy to understand, and whether it is easy to market and distribute such a product.Reasons to PurchaseGain a thorough understanding of new mortgage innovations currently being tested in the UK and abroad.Identify and evaluate the innovations that could be useful to grow your business.Understand where the opportunities lie for UK lenders.