Almost a fifth of UK brokers have been held as ‘data prisoners’, according to a recent survey from mortgage platform Smartr365.
A concerning 17.5% of respondents to the survey reported being held to CRM platforms by complicated methods and/or extortionate fees in order to retrieve data.
Of those who reported being held as a ‘data prisoner’, over a quarter were charged over £1,000 for the return of their data, with one in twenty charged at least £10,000, and one in fifty charged over £20,000.
Thora Kehoe, chief product officer at Smartr365, said: “Wrongful data handling is not only holding brokers to outdated and ill-fitting tech platforms, but also limiting the growth of the mortgage industry.
“This is a scandalous practice that deserves much more attention.”
Despite these shocking statistics, just under nine in ten respondents (86%) agreed that a mortgage application journey led by tech is still safer than its paper-based equivalent.
This confidence in turn reaffirms belief in the mortgage tech sector despite obvious failings around data handling in some instances.
In addition to their survey, Smartr365 called for greater transparency, claiming that a lack of data transparency in the mortgage industry is hindering its growth.
Kehoe added: “We call on all tech platforms to be transparent – in terms of their pricing, offering, and data handling.
“That almost a fifth of brokers have been unfairly penalised indicates that the problem is widespread, so it’s vital we don’t let this become a chronic issue which stymies the progress of our industry.
“Let’s stamp out these murky tactics to build a clearer and brighter future for all.”
