Atom Bank Ups Its Mortgage Game

8 de Noviembre, 2018

Tiempo estimado de lectura: 2 minutos

Atom has initially introduced 2- and 5-year buy-to-let remortgage products for landlords that have four to 25 properties.

Users will have to pay a 1% loan fee, and the maximum loan term is 25 years. For now, it is testing the products in an exclusive pilot, which will allow it to make improvements before committing to a full roll out. In the future, it also wants to offer fixed-rate products and other solutions.

Atom has also partnered with Newcastle University in the UK to help it gauge consumer trust in technology and build better products, including mortgages. The two parties are working together on a project called FinTrust, which has been funded by a £1.2 million ($1.57 million) grant from the Engineering and Physical Sciences Research Council. One of the first applications of the research will be developing a blockchain to build better mortgages, a project that will draw on blockchain expertise from Newcastle University’s Computer Science department and crypto-statisticians at the Durham University’s Department of Mathematical Sciences, according to Edward Twiddy, chief innovation officer at Atom Bank, cited by Finextra. As such, with time, we will likely see Atom rolling out even more mortgage products.

Ensuring that it is building suitable products will likely help Atom to remain successful. Only 9% of consumers would use a mobile app to apply for a mortgage, compared with 29% who would visit a branch to do so. As such, it seems that consumers don’t trust technology to handle such high-value financial services yet. Atom is wise to look into how it can build more credible solutions in the future, which will help it to compete against other neobanks and incumbents operating in the country.

Fuente: Business Insider

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