The Power of Coming Together: A Recap of NivoCon

Nivo Updates
May 12, 2023
minutes read

Just over a week ago, we held our first ever NivoCon. This event brought together an incredible network of individuals from across the second charge industry - including lenders, brokers, solicitors, tech providers, consultants, and the industry press - to discuss the growing value of second charge and its impact on the economy.

The day exceeded all expectations with a packed schedule of insightful sessions and lively panel discussions. Many thanks to all who attended.

My primary takeaway from NivoCon was the immense value in uniting as a second charge industry. It was fantastic to see so many familiar faces engaging and discussing specific areas of interest relevant to their businesses. Everyone I spoke with during and after the event emphasised how much they appreciated this opportunity.

The Second Charge "Organisation"

NivoCon demonstrated that the second charge sector functions almost like an organisation in its own right. Each participant relies on others to perform critical roles in the overall customer proposition. Whilst competition exists, the prevailing sentiment was that a much larger opportunity lies in growing and expanding the market together. The real competition for this bigger prize comes from other forms of finance. One of the significant challenges we face in the second charge industry, as discussed extensively at the event, is the friction within the end-to-end process. This friction results in considerable time, effort, and cost, constraining the market's potential.

Growth and Collaboration

To realise this opportunity, we must collaborate more and more. At Nivo, we believe we have a role in this market expansion. We can be a driving force for greater digitisation, reducing much of the friction. We have already done this with numerous brokers and lenders individually. The Pepper rollout, which eliminated email for submissions, now showcases the power of digitising interactions between various parties. A fully digitised second charge market does not seem far away, but it will require a concerted effort from everyone present at the event to seize this opportunity.

New Technologies

Another prominent aspect of NivoCon was the rapid emergence of new technologies. Opinions varied on which technologies could have an impact and how. Many attendees expressed frustration that Open Banking wasn't used more, but it became clear that significant challenges existed in operationalising it effectively based on current industry practices. Some saw Artificial Intelligence as incredibly powerful, whilst others were sceptical about its ability to provide the necessary accuracy and quality in a heavily regulated and high-risk market like second charge. However, there was unanimous agreement that technologies like digital identification, e-signing (especially for deeds), and secure instant messaging offered clear benefits that should be adopted as quickly as possible.

Discussions didn't stop there, as participants also talked about fraud prevention technologies that could further mitigate rising fraud and data services that could enable quicker, more accurate, and better-informed customer analysis.

The key question surrounding these technologies is how the market can adopt them collectively. The value of any technology is limited if the partners of second charge lenders and brokers don't embrace that technology as well.

Risk Control

In addition to growth, attendees were also concerned about fraud, a growing problem. Technology presents both a threat and an opportunity. Many participants were clearly concerned about how fraudsters could use new technologies to bypass controls that have long been effective. On the other hand, a wealth of technologies for detecting and preventing fraud offer the potential for greater security than ever, making the second charge market safer than other target markets for fraudsters.

At Nivo, we're proud to have pioneered the use of digital identification within the second charge market alongside several of our clients. Today, the second charge market is further ahead than many larger markets in embracing this technology. This success again proves the market can be much more effective in managing risk collectively, rather than unilaterally implementing various controls. It also highlights the unique potential of the second charge industry to adopt technologies that many larger and less connected markets would struggle to embrace.

Our Request

We ask that you keep us in the conversation. As discussed at the event, we will be:

  • Scheduling workshops on an organisation-by-organisation basis to understand your specific digitisation needs and opportunities.
  • Creating a NivoCon website featuring videos and information from the day.
  • Organising a roundtable for interested parties to discuss how AI technology can best be utilised in the second charge market.
  • Running a webinar on the use of digital identity for brokers, addressing the issue that many people don't know how to access this feature via Nivo.
  • Continuing to arrange events within the sector on a regional basis to maintain the momentum of industry conversations on important topics.

Did you attend? Share Your Thoughts

We would also appreciate ongoing feedback about the event. If you were in attendance at NivoCon, please take a couple of minutes to complete this form and share your thoughts with us.

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The second charge market holds vast potential, and technology is the key to unlocking even more opportunities. The energy and enthusiasm at the event were palpable, and I believe we can build on that momentum to achieve even greater things!

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Written by

Michael Common
CEO & Co-Founder, Nivo