Lenders investing in tech to boost direct

The chief executive of the Association of Mortgage Intermediaries has warned that banks are investing heavily in technology designed to engage with customers directly, something he said could spell a diminishing share of the mortgage market for brokers over the medium term.

He said: “Within 10 years we could see lenders use technology to entice customers which could swing the balance between intermediary-sourced mortgages and direct business back to a direct majority.”

Currently the intermediary share of the mortgage market is around 66% but Sinclair has said previously he believes this will rise to 70% within 12 months.

His comments came after NatWest and RBS confirmed they will offer customers access to Apple Pay when it launches in the UK. Coutts is also offering Apple Pay.

The lenders – part of the Royal Bank of Scotland group - said the introduction of Apple Pay is another way the bank is “making it easier and more secure for customers to do their banking on the move”.

RBS and NatWest recently integrated Touch ID, where customers can open the NatWest and RBS mobile iOS apps just using a fingerprint, and Get Cash, where customers can withdraw money from an ATM without a bank card by using a text code generated by their mobile banking app.

When you add a credit or debit card to Apple Pay, the actual card numbers are not stored on the device, nor on Apple servers.

Instead, a unique device account number is assigned, encrypted and securely stored in the secure element on your device.

Each transaction is authorised with a one-time unique dynamic security code, instead of using the security code from the back of your card.

Stuart Haire, managing director of direct bank for NatWest and RBS, said: “We want to be the best bank in the UK for customer service and we know that our customers value simple ways to pay that use the most relevant, secure and private technology.

“The introduction of Apple Pay allows us to do this. We are delighted to offer Apple Pay and are really excited to be among the first UK banks to offer it to our customers.”

In stores, Apple Pay works with iPhone 6, iPhone 6 Plus and Apple Watch. When paying for goods and services within apps, Apple Pay is compatible with iPhone 6, iPhone 6 Plus, iPad Air 2 and iPad mini 3.