Data Security A Priority For Mortgage Brokers And Consumers
As cyber fraud threats rise, consumers increasingly want to feel confident about the security of their personal data when applying for home loans. According to the Equifax Mortgage Broker Pulse Survey 2024, 59% of consumer respondents feel unclear about how brokers and lenders manage their data, with half believing their data is only ‘somewhat safe’.
Brokers are making headway in addressing these data security concerns, with the survey reporting that 87% of broker respondents have completed fraud awareness training in the past 12 months. Over 60% include fraud awareness in their onboarding processes and over 90% rate their ability to protect customer data as ‘good’ or ‘excellent’.
These efforts are crucial, especially with 63% of consumer respondents having experienced fraud or scams in the past year or knowing someone who has. Just over a quarter of brokers also reported their business or clients being affected by fraud or scams in the last 12 months.
Communication and education for greater consumer confidence
Despite these efforts, a communication gap persists. Only 9% of consumer respondents feel their data is ‘super safe’ with brokers and lenders. Much of this apprehension comes from a lack of awareness, with 74% of consumer respondents wanting more communication from brokers and lenders about how their data is safeguarded, and 54% seeking education on how to manage their data securely.
Similarly, 68% of brokers believe better communication from lenders about data handling would improve confidence. Over half also wanted more education from lenders on data security.
Both brokers and consumers acknowledge that data protection is a shared responsibility, with 70% of brokers, and 76% of consumer respondents, agreeing that everyone plays a role in keeping data secure.
“With brokers and consumers aligned on the need to keep data safe, active collaboration is vital if brokers are to remain trusted advisors to their customers,” said Mr Moses Samaha, Executive General Manager, Equifax.
External support to minimise fraud risk
To enhance data security, many brokers turn to external third-party providers, with 60% relying on their aggregator, lender or IT service providers for fraud protection.
“Brokers juggle multiple responsibilities and are aware of how rapidly fraud threats evolve. Many are seeking external support to minimise fraud and security risk by outsourcing this important task to professionals,” said Samaha.
Uptick in digital tools
Brokers are increasingly adopting new technologies to boost security, streamline operations and improve customer experience. 40% plan to adopt new digital solutions like ID verification in the coming 12 months, up from 17% from the previous year’s Mortgage Broker Survey. Addressing admin pressures is also a key driver - cited in the top four issues for brokers this year - with digital tools helping brokers make faster, smarter decisions about borrowing capacity.
Affordability restrictions have become a growing cause of loan processing delays, with 21% of brokers in 2024 citing this as a factor, compared to 11% in 2023. Additionally, half of brokers expect loan refinancing to be a focus over the next year, doubling from the 2023 figure.
Digital and AI-led tools like affordability assessments will prove critical as brokers nominate interest rates, inflationary pressures and housing prices as key factors expected to impact lending assessments. Rising interest rates remain a significant obstacle, with 42% of brokers reporting them as the primary cause of application delays in 2024, up from 38% the year prior.
Interested in finding out what else the Equifax Mortgage Broker Pulse Survey 2024 discovered? View the full survey results.
Partnering with Equifax enables brokers to achieve better predictive outcomes, make faster decisions, deliver seamless user experiences, mitigate risks and protect against fraud and ID theft across the user journey.
