Finance: Mortgage and Insurance Policy Sourcing
Acre adopts Luthers platform for Deep Process Automation at scale to automate the complex mortgage and protection sourcing process.
Buying a new home is one of the most significant decisions a person can make. Yet, the mortgage sourcing process remains slow, opaque and fragmented. For this reason, over 70% of people choose to rely on a broker to source and apply for their mortgage. However, the sourcing process remains a complex one which currently takes several months to complete and the customer experience increasingly falls short of expectations. Acre Software is on a mission to simplify the way we buy houses. They are reimagining the end-to-end mortgage sourcing process by combining their deep industry knowledge with modern technology, to provide an informed and satisfying consumer experience. Acre is working with one of their customers, Sesame Bankhall Group (SBG), a subsidiary of Aviva plc., to provide its product to a large network of brokers with over 10,000 financial advisors in the UK and facilitate 42B in 1 mortgages annually.
Each of these participants plays a speciﬁc role in the end-to-end mortgage process which can be seen as a series of logical tasks and business rules. The participants continue to use their local systems (e.g. Lender system, Equifax’s credit check tool, etc…) which are connected to the common network via APIs and Oracles. While every participant remains free to shape their respective operations internally and to decide how to best perform their duties, the Acre product ensures that all participants share a common script (smart contract) running on a network of blockchain peers for critical interdependent process steps. These scripts act as guardrails for operations while leaving a transparent & tamper-proof trail for auditability.
The Acre product utilises Luther's compliance by design capability, which provides its users with execution certainty and the systemic assurance that the process is executed as per custom compliance rules. In the case of Acre, the compliance rules developed were bespoke to the Mortgage Advisory industry. For example, the FCA publishes and maintains a set of regulatory guidelines for UK brokers to adhere to. Some of these regulations readily translate into objective instructions (e.g. IF this THEN that) whereas others leave room for interpretation. Working with SBG and subject matter experts, the Acre and Luther team followed a rigorous process to turn somewhat subjective guidelines into objective executable programs:
- The regulatory guidelines were studied with Acre and SBG industry experts to extract a pool of both subjective and objectives guidelines
- All guidelines were then turned to logical instructions that leave no room for interpretation and approved by industry experts
- These logical instructions were ﬁnally developed as programmable scripts (smart contract) for the Acre product to execute
The new services provided by Acre and enabled by Luther System’s technology have seen astounding success so far. The overall workload has signiﬁcantly reduced for both the independent brokers using the platform and the compliance teams where manual checks have been virtually eliminated. As a result independent brokers who switched to the Acre product have been able to handle 33% more cases per month. Due to the integration with Acre’s CRM system, they have also continuously generated cross-sell opportunities, encouraging sales of insurance products to end consumers. Compliance teams no longer rely on periodic random sampling & instead achieve compliance coverage, reducing non-compliance risks and their operating cost reductions.
The simpliﬁed delivery of compliance services to their mortgage network is estimated to save £6.6m a year. More recently, Acre has also started working with Directly Authorised (DA) brokers, delivering the same kind of outcomes to their internal compliance teams who no longer need to interpret regulatory guidelines. With Luther’s reliable tech powering its product, Acre is set to accomplish its mission of simplifying home buying. Please ﬁnd a demo of the solution here demoing a user journey for a broker creating and completing a mortgage application (case) on Acre’s platform. A demo of the full Acre product is also available here.