The mini-boom in the property market over the summer, fuelled in part by the stamp duty holiday, has come as a very welcome boost. The sector was particularly hard hit by lockdown, and even now the latest official figures show that we are some way off the volumes being achieved in the early part of the year.
Regrettably, we are now seeing a fresh spike in coronavirus cases, and the government has reacted by imposing new restrictions. If these are not enough to ‘flatten the curve’ again, we all need to factor in the possibility of a further lockdown. Until an effective vaccine is readily available, we could all be dealing with different levels of restrictions for some time to come, as the Government seeks to manage the spread of the disease.
Clearly, most estate agents can’t afford just to shut up shop for the duration: they need to keep things ticking over to survive. If completing deals is difficult or impossible with restrictions in place, that makes it all the more important to manage the pipeline business and progress that as much as possible, to be in a position to take maximum advantage at times when restrictions are eased.
The industry has made excellent progress in adopting technological solutions such as desktop valuations and video walk-throughs, and this will undoubtedly help if firms find themselves dealing with another lockdown situation. But continuing to onboard new clients is also vital, and far too many agents are still reliant on face-to-face ‘manual’ processes for this.
For some reason, having a client hand over hard copies of their passport, and documents such as bank statements and utility bills, is often seen as the gold standard for identity verification. Under the sort of full lockdown we saw earlier in the year, this was not possible. The more recent requirement for face-coverings to be worn in branches also clearly presents practical difficulties for this approach. But even if this were not the case, if someone is looking to disguise their identity, it is very easy these days to produce highly sophisticated forgeries that would get past all but the most skilled fraud detectors.
Fortunately, as the techniques employed by fraudsters have become more sophisticated, so too has the technology available to combat this. There is nothing to prevent a full customer onboarding process – including all the necessary Know Your Customer (KYC) and Anti-Money-Laundering (AML) checks – being conducted 100% remotely and securely.
The latest technology can combine credit reference data, biometric facial recognition, and digital fraud checks. Triangulating these different sources of information produces a unique ‘composite digital identity’ that is practically impossible to fake. All this can be done online, with no need for in-person meetings, face-coverings or hard copies of documents.
Leaving aside lockdown or any other restrictions, this is clearly much more convenient to clients than requiring them to present their documents in person. Increasingly, the younger generation of first- and second-time buyers expects to be able to do almost everything online or on their mobile, and there’s no reason why this can’t extend to the process around buying and selling a home.
There is still clearly a role for physical valuations and viewings but carrying on using manual processes for customer onboarding and AML checks makes no sense in a digital age, still less with the ongoing threat from covid-19.
John Dobson is the CEO of SmartSearch.
I totally agree with John Dobson CEO of SmartSearch, terrible though it is, Covid-19 has allowed all to re-imagine agency and its functions. Especially the repetitive processes such as AML and KYC, and the day to day business, with AR and VR taking front stage. A realisation is hitting companies that technology is a partnership, an enabler, rather than a hindrance. Software as a service – is what we at Proptech-PR deal with a huge amount of the time, and that word service has more than one implication.
We are seeing a bit of a divide opening up for many businesses, yes there has been more than 20,000 new sales agreed to this point year on year, but the real winners are the agencies pivoting their offering and embracing digital into their business or even more digital transformation as they have already started this journey prior to lockdown.
Having met a really great sales professional on Sunday, whilst out looking for a new property, there is certainly a time and a place for a knowledgeable and friendly face, but many of the processes that take place in real estate are ‘groundhog’ processes, better suited to a coded solution. 2021 will see an even bigger expansion into the digital world, my advice start exploring now to get ahead of the game and de-risk your business, remember Woolworths was a cutting edge buying experience once, but things move on, especially the reach of technology which doubles every year, time to keep up.
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I recommend reading HMRC guidance for estate agents (July 2020) section 4 (particularly 4.101).
https://www.gov.uk/government/publications/money-laundering-regulations-2007-supervision-of-estate-agency-businesses/estate-agency-guidance-for-money-laundering-supervision#customer-due-diligence
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