This month’s highlights include updates on the booming UK housing market and digital adoption. Here are some of the headlines that the Banking team at PEN have been discussing.
- In May it was reported that the UK saw its biggest net increase in mortgage lending, rising by £11.8bn in March
- This has led to a number of lenders reporting a boom in mortgage lending, with HSBC recording their highest amount of mortgage completions in 40 years and TSB seeing a 60% increase on the last 12 months,
- The high demand, driven by the stamp duty holiday and greater confidence in the market, is resulting in lenders increasing mortgage products and lowering rates closer to pre-pandemic levels, which in turn is driving UK House prices up
- With the stamp duty holiday threshold due to reduce in June and ending in September we expect the market to cool off somewhat, but mortgage lending products should remain consistent
- Digital Transformation has been pushed up the priority list for CFOs as a result of the pandemic, according to a global survey
- The pandemic has accelerated what was already high on the agenda for many organisations, not least because of greater customer adoption
- However, consumers have to be confident adopting new digital services, and with organisations hit with issues this month (see Santander and Klarna) it acts as a reminder of the impact if things go wrong
- A significant aspect of the move to digital is the customer experience it provides, with customers usually more willing to pay more for a great customer experience – something we mentioned in a recent blog
- Failure to provide a great service, and leaving customers unable to access funds securely, will only delay the transition to digital
And in case you missed it…
- The FCA has extended the Strong Customer Authentication deadline by another 6 months to 14th March 2022
- The Bank of England is reportedly considering launching a digital currency called "Britcoin"
- Another digital bank account is on the horizon, with JP Morgan set to launch their new current account in Autumn
Each month we send out a regular email summary of the latest headlines from across the Banking sector that have caught our eye. If this sounds like something that interests you, please sign up to our monthly Banking Headlines here.