From standards to tech: what international markets can learn from UK equity release and what can they adopt or adapt to serve their own customers better? Hear more from Warren Bleechmore Principal Consultant at finova.
In recent years, the UK has emerged as a leader in the equity release market, setting standards and pioneering innovations that have reshaped how these products are offered. With a focus on customer-centric approaches, transparency and advanced technology, the UK market has developed solutions that meet the evolving needs of borrowers. Now, international markets are looking to the UK for guidance to elevate their own equity release offerings.
But what can international equity release providers learn from the UK market? What can they adopt or adapt to serve their own customers better?
Building trust through robust standards and a customer-centric approach
One of the UK’s biggest achievements has been changing the perception of equity release from a stigmatised product to a trusted financial solution. A key player in this transformation is the Equity Release Council (ERC), setting standards that protect consumers while promoting transparency and flexibility. Through these standards, UK providers have elevated the credibility of equity release products, fostering trust among borrowers.
International markets can take inspiration from this by focusing on outcome-driven standards that prioritise customer needs. Ensuring clear communication, reasonable fees and robust consumer protections are crucial for any market looking to reshape its equity release landscape. By adopting best practices that emphasise positive customer outcomes, international providers can position themselves as trustworthy partners for individuals looking to release the value tied up in their homes.
Working with Government and regulatory bodies
A key feature of the UK’s equity release sector is its close collaboration with regulatory bodies, such as Parliament and the Financial Conduct Authority (FCA). These partnerships not only provide consumers with added layers of protection but also help reinforce the legitimacy and stability of the industry. The FCA, for example, plays a vital role in monitoring standards and supporting practices that protect consumers while encouraging innovation.
International markets can learn from the UK’s regulatory framework by establishing similar partnerships with their own government agencies and financial regulators. Close collaboration with these entities can increase consumer trust, improve market stability and create a supportive environment for equity release products to thrive.
Expanding product portfolios to meet diverse customer needs
In the UK, providers have diversified their product offerings to meet the varied needs of different customer demographics. From flexible lifetime mortgages to solutions that allow partial repayments, UK providers have designed products that offer customers a high degree of flexibility. Many international markets are still in the early stages of developing their equity release offerings, with products tending to be more foundational in design and not yet offering the same level of flexibility found in the UK.
By studying the UK’s product range, international providers can explore new ways to bring flexibility into their offerings. For instance, many UK products allow borrowers to make partial interest payments, reducing the compounding effect and preserving the customer’s equity in the property. Additionally, products designed for younger retirees or those still working offer tailored solutions that meet unique needs, such as optional payment structures that reduce interest accrual. Expanding product portfolios in this way enables international providers to offer customers better control over their financial future.
Fostering collaboration across key market stakeholders
A key factor in the UK’s success has been the collaborative approach among market participants – from solicitors to brokers, to technology providers and funders. By working together, these stakeholders help create a seamless, streamlined experience for borrowers. Technology plays a crucial role here, allowing providers to connect different parts of the equity release process—from initial application to loan servicing—under one unified system.
For international markets, fostering similar collaboration is key. Creating channels for open communication and cooperative partnerships among stakeholders not only benefits customers but also strengthens the industry as a whole. By bringing together key players in the equity release process, providers can improve service quality, speed up processing times and ensure customers are better supported throughout their journey.
Leveraging technology to drive operational efficiency and customer experience
Technology is a critical driver behind the UK’s equity release advancements, enabling providers to offer faster, more efficient and more flexible products, manage the application process more efficiently, and deliver better servicing throughout the loan lifecycle. UK providers have invested heavily in digital tools such as automated underwriting, real-time tracking, and integrated management platforms, which streamline internal processes and reduce administrative burdens. These advancements enable lenders to operate with greater speed and flexibility, ultimately enhancing the borrower’s experience through improved service and support.
International providers can leverage similar technologies to boost operational efficiency and improve the broker and lender experience, which in turn improves outcomes for borrowers. For instance, intuitive digital portals provide brokers and lenders with real-time access to application statuses, payment tracking, and interest monitoring, enabling them to respond more quickly to borrower needs. Automated underwriting tools further streamline the application process, reducing processing times and simplifying workflows. By embracing these technologies, international providers can enhance both service quality and adaptability, positioning themselves for future growth in an evolving market.
Paving the way for a flexible, customer-first equity release market
The UK’s journey in transforming the equity release market serves as a valuable blueprint for international markets eager to follow suit. As global demand for flexible and secure equity release products grows, the opportunity for international providers to innovate and build trust is ripe. By looking to the UK as a model and applying these best practices, equity release providers worldwide can make meaningful strides towards a more robust, flexible and customer-friendly future.
The views of contributors are not necessarily those of the Council.
