Specialist sourcing systems "aren't up to scratch", argues panel
Speaking at Precise's MCD and Second Charge Lending conference yesterday, the panel discussed the growth of technology within the second charge market, with the Loans Engine's Ryan McGrath stating that many systems "aren't up to scratch".
"There's a good opportunity for new sourcing systems to come in and take market share, as others are too focused on first charge."
McGrath described current sourcing systems as "barriers to growth", but said that the complexity of second charge, in terms of underwriting and packaging, is partly to blame.
However Precise MD Alan Cleary said that many second charge systems are more sophisticated than their first charge counterparts.
He said that "there's a good opportunity for new sourcing systems to come in and take market share, as others are too focused on first charge".
Cleary added that advisers "do need help to choose the right product, so I'd encourage anything that makes that happen", urging networks and clubs to look at sourcing systems from a compliance angle.
Clearly concluded: "I think it's going in the right way. Clearly there's a lot more that can be done in the technology space, not just from sourcing sytems but from lenders themselves to make it an easier process."
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