I visited Mortgage Expo last week which was an interesting, if somewhat exhausting day out! One thing I found fascinating was the number of Point of Sale systems now available to mortgage brokers. Crystal, arguably the leading mortgage point of sale package over the last few years, has enhanced their solution providing a more complete front and back office capability by adding improved case management and workflow capability to produce a competitive market offering. However, these enhancements, , were clearly needed to keep the new range of suppliers at bay. Focus launched their solution, ‘360’, earlier in this month, while 1st Software launched theirs the night before the Expo. Both of these companies have formidable track records in providing sales solutions to IFAs and mortgage brokers which mean their new offerings need to be taken seriously. Companies like N4 and Distribution Technology are also increasingly active in this market with their ability to deliver large corporate POS systems.
The leading sourcing systems of MBL and Trigold have expanded their offerings with the acquisitions of The Key and Dashboard respectively, both are seeking to provide cost effective alternatives for those who can’t afford the higher price points of some of the traditional suppliers. Companies traditionally more associated with the IFA marketplace also continue to have success in the provision of back office systems to the mortgage market, with the likes of Bluecoat, Plum, IntelliFlo, True Potential and Quay all having credible offerings to the mortgage market. While mortgage specialist back office suppliers like Mortgage Stream, Mortgage Keeper and Casepro are not only defending market share but continuing to grow. Add to this newer entrants like Solution4, who have expanded their back office capability to move into the front office and you have an increasingly crowded market. The high level of supply has been driven by an active market that is increasingly responding to regulatory pressure and the need to set and control standards with technology. However, this level of supply is surely neither sustainable nor desirable. Who will survive? Well, having now met most of the existing and new suppliers in the last couple of months, I think winners and losers can begin to be identified already. Some will survive in a niche with a small cost base, others will invest heavily to gain market share. However those in the middle, and there are quite a few, will struggle unless they quickly get critical market share through a few big deals, or look to consolidate.
