A pair of recent surveys asked brokers about how confident they were about their business growing in 2018, with positive results.
In January 2017, 31% of brokers were confident about their business. By the beginning of 2018, this had changed to 68% of brokers having confidence in their business growth, according to an mtf survey.
There is concern about the effect that Brexit will have on the economy and some brokers fear that increased regulations could negatively affect them. However, despite these reservations, most brokers are confident that specialist lenders in the bridging and commercial mortgage sectors will have a good 2018. In fact, a Shawbrook survey shows that over 80% of brokers expect significant growth in the bridging finance market.
Open banking was introduced on January 13 and this means that financial information from the nine leading high street banks about borrowers can be accessed by lenders. This could improve the speed and efficiency of loan applications, as open banking provides lenders with more data on which to base their loan decisions. Lenders will be able to see the transaction history of loan applicants, which will help them assess a borrower’s ability to keep up with loan payments.
Open banking is to be extended with more financial organisations sharing financial data on individuals and businesses, and this could further benefit the loan application process.
Open banking may also revolutionize financial advice. The Competition and Markets Authority (CMA) behind the introduction of open banking said that it will provide:
“…reliable, personalised financial advice, precisely tailored to your particular circumstances delivered securely and confidentially.”