Operational transformation, not AI adoption, is the metric that matters in specialist finance, says Crystal SF’s operations director
The mortgage industry’s enthusiasm for artificial intelligence is well documented. Bank of England and FCA research found that 75% of financial services firms are already using AI, with a further 10% planning adoption within three years.
Among lenders, UK Finance data published this year shows 48% are actively investing in AI to optimise operations, 75% believe it will enhance customer engagement, and 68% expect improvements in data analysis and decision-making.
But Kris Corns (pictured top), operations director at Crystal Specialist Finance, argues that the more important question is not how widely AI is being adopted — it is what it actually improves.
“There is no shortage of conversation about AI in financial services,” Corns said. “The more important conversation is what it actually improves.”
The distinction matters because adoption figures tell only part of the story. Some 40% of mortgage lenders surveyed identified transaction length as their single biggest frustration — a finding that suggests the industry’s challenge is not a lack of technology, but an inability to translate technology into meaningful operational change.
In specialist finance, the stakes are particularly high. Cases routinely involve multiple properties, unusual income structures, corporate arrangements, refurbishment plans and substantial volumes of supporting documentation. Manual duplication, disconnected systems and unnecessary process steps compound friction at every stage.
Corns is clear that the opportunity extends well beyond AI. Better APIs can eliminate rekeying. Automated document classification can accelerate initial case assessment. Smarter criteria tools can help brokers identify viable options earlier in the process. Workflow automation can surface stalled cases before anyone has to go looking for them. Better management information can show businesses where transactions are slowing, rather than simply recording completion volumes.
AI, in this framing, sits on top of these foundations — capable of interrogating information, summarising documents, identifying gaps and supporting faster, better-informed decisions. But only where the underlying process is already sound.
“Technology should support judgement, not disguise poor process,” Corns stressed. “Automating an inefficient process simply allows you to be inefficient faster.”
That principle shapes how Corns believes transformation programmes should be designed. “Operational transformation should begin with the customer and work backwards,” he said. “Where does the journey slow down? Where are brokers repeatedly chasing? What information do underwriters regularly have to request? Where are people performing low-value administration instead of using their expertise? Solve those questions first and then determine where technology can help.”
Governance adds a further dimension. The FCA’s Mills Review identified operational transformation as one of four major shifts AI could drive within retail financial services, but flagged accompanying concerns around governance, cyber risk, consumer outcomes and accountability. Corns argues that responsible adoption cannot therefore be measured simply by the number of tools a firm deploys.
The metrics that matter, in his view, are operational: minutes removed from processes, fewer case touches, reduced rekeying, faster response times, fewer errors and better outcomes for brokers and their clients.
“The winners in specialist finance won’t necessarily be the businesses with the most technology,” Corns said. “They will be those which combine technology with experienced people, good data and well-designed processes to make complicated transactions feel considerably simpler.”
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