1.
Lack of Identity
I have made this point before, but despite the sea of
negativity it has received, Veyo continues to be promoted without a clear and recognisable
identity. On one hand it says it is a
case management system, but on the other, depending on the audience it is addressing,
it says it is not. Despite recent announcements nobody, as far as I can see, is
any the wiser as to what role Veyo will play in the conveyancing market when it
is released.
2.
Lack of USP
On the back of
a lack of indemnity is the absence of a USP.
There is talk of a ‘Deal Room’ and of how this will promote
collaboration between parties as well as a ‘Chain View’ allowing those involved
in a chain to keep updated on progress of all of those involved in the chain of
transactions. A valid and brave
objective, but how can it be sure that this will remain unique even if it
proves practicable? I know there are a
number of well-established case management suppliers working hard at the moment
to introduce similar features. Once
these become universal where will this leave the Veyo business model? Moreover,
for this to prove to be a commercially successful USP, Veyo will need to see
the vast majority of the 4,500 firms who undertake conveyancing to sign up to
their promise of their conveyancing revolution.
Is that really going to happen? It will only take one party in the chain
not to ‘buy in’ into the USP for the whole stack of cards to come crumbling
down.
3.
Pricing
Why announce
pricing before the product is available for viewing? A £20 per transaction price tag seems on the
face of it to be reasonable, but until we know what we will be getting for it,
how can this be objectively judged. Furthermore, if this is going to be the
price for both small and large providers, do Veyo really believe that the main
players in the market are going to pay for a service over and above their
existing services, which is unlikely in reality to add anything of real
benefit? The top five national conveyancers
completed in January on around 7284 purchase/re-mortgage transactions (Land
Registry Data). On top of this they would have also completed on around 3500
sale transactions. So take as a monthly
figure of transactions of 10,000, and apply to this the £20 transaction fee
this would give a yearly financial commitment to Veyo if there were all to sign
up, of a staggering £2400000.00! How can
this make commercial sense when for this money they could quite easily invest
in similar enhancements to their existing systems! The reality is that it will perhaps only be
those who are doing a moderate amount of conveyancing work that may be
persuaded to pay the fee. The question
is whether this type of take up would be enough to satisfy Veyo’s shareholders.
Only the accumulation of critical mass will be its saviour.
4.
Not making the system free of charge
This ties in
with three above, but represents a massive commercial mistake on the part of
Veyo. By making the system free, at
least for a trial period, would have given practitioners the opportunity to evaluate
the benefits of the system, and to be persuaded or otherwise by its
features. This would at least encourage
those with curiosity to take a look.
Veyo could by making it free to join look to make money on the resale
within the platform of third party services, by allowing for example search
providers to offer the platform as an added value product.
5.
Lack of reality on the success of engagement with existing case
management providers
Reality will dictate
that existing case management suppliers will not sit back and allow Veyo to
step in and eat into their market shares without a fight. Why should they? Until Veyo announces and clarifies the
benefits of integration and offers to underwrite the cost of this, so that the
practitioner has to pay for it, why would a CMS wish to hook up with the system
of a competitor? Unless I am missing something
fundamental I just do not see how and why Veyo believes practitioners will be
knocking the door down of their CMS providers to integrate.
6.
Underestimating the level of desire for
practitioners to engage with forward looking technology.
If Veyo
delivers what it says it will, is there a critical mass of conveyancers out
there who will be prepared to change the way in which they work to encompass
the vision of online collaboration and online engagement with clients and
estate agents? I doubt it. Conveyancers are in the main traditionalists who,
even if there was no charge for accessing the system, would still hesitate to
sign up to a method of work which remains for a vast number, alien. There needs to be major shift in outlook of
use of technology, which I do not
consider currently exists within the profession.
7.
Focusing too much on the consumer and not the
practitioner
Much of the PR
surround Veyo has focused on a campaign aimed at the consumer. Veyo appear to be of the view that if they
can present a picture to the consumer that Veyo will provide the answer to the dissatisfaction
many consumers have about delay when selling and buying a property, this will
force the consumer only to use a conveyancer who uses Veyo. The logic behind this vision is that consumer
demand will then leave conveyancers with no option but to buy into Veyo. I believe this to be a misplaced vision because
it is clear that although consumers would like to see transactions moving more
quickly most home movers are more interested in factors like price, locality of
the conveyancer and reputation. I really
can’t see a home mover turning down a quote from a competent conveyancer just because
that conveyancer is not a customer of Veyo.
The Law Society should know from past campaigns involving its beloved
CQS that there still remains an overwhelming proportion of home movers who have
no idea what CQS stands for, let alone the benefits of engaging a firm who has the
credential.
8.
Lack of clarity about mandating
Veyo continues
to play its cards close to its chest on mandating and on the role it will adopt
in the future in the delivery of the CQS accreditation. There
is one thing in life which has the effect of turning practitioners off and that
is the thought of having to be forced to do something which they do not believe
to be is in their best interests, or that of their clients. Look at what happened to the mandating of
home information packs and how the conveyancing industry rebelled against it. No professional body should allow itself to
make decisions about the affairs of their members which are commercially
motivated. Veyo has already said there
will be no mandating but there remains scepticism and for as long as this
remains there will clearly be a number of firms who will be holding back at
this stage.
9.
Underestimating
the future viability of Lender Exchange
Some may forget
that we already have an established system used by the main lenders as a means
of verifying panel members and for facilitating communication. Veyo has said it is likely lenders will
mandate Veyo. By saying this they are
blatantly ignoring the presence and success of the Lender Exchange and the fact
that the lenders using it are probably tied into the system for a number of
years in any event. Unless Veyo can acquire
critical mass in a very short time frame I really cannot see lenders
contemplating the mandating of the system.
10. Arrogance
Practitioners need engagement to feel that they are part of something and have helped develop it. Despite claims to the contrary Veyo has developed a product without meaningful recourse to the profession and the suppliers of CMS. This has created a huge amount of resentment and negativity, and even though Veyo has started to open up and engage it may be the case that this has happened far too late in the day for the damage to be repaired. Nobody likes arrogance and it will take some time this perception of Veyo’s approach to fade. The golden question is that does Veyo have enough money in the bank to ride out the storm of negativity which continues to brew and blow strong.
Morgan Jones and Pett are solicitors who provide legal advice and services to clients based in England and Wales and who can be contacted on 01603877000 or via email at davidpett@m-j-p.co.uk
