Challenger bank writes $41bn in resi loans

by Miklos Bolza20 Mar 2017
ING brought in $47.8bn worth of loans in 2016, increasing the total amount by 10% in a strong set of financial results.

The amount of residential loans rose by just over 7% from $38.7bn in 2015 to $41.4bn a year later. Owner-occupier mortgages increased by 12% while investor loans declined by mid-single digits, ING CEO Uday Sareen told Australian Broker.

This remains a sizeable increase for the bank since owner-occupier loans make up 77% of its total retail mortgage portfolio. Brokers have been crucial for ING’s financial success with 90% of all loans originated through the third party channel in 2016.

“Buying a home is such an important decision for people and very relevant to ING developing the main financial relationship with customers,” Sareen said.

One of ING’s biggest investments of 2016 was Lendfast, an end-to-end processing system for mortgages. The system is all about efficiencies in the origination process for both brokers and customers.

“Lendfast has great capabilities, which we expect to see shining through in the coming months as we bed in the system – including cutting turnaround times by one third, providing live updates, and empowering brokers to do more, underpinned by our brokers sales and support network.”

In fact, the platform has resulted in a 50% reduction in processing time per loan with customers able to upload documents digitally from anywhere while being reminded of vital milestones and forgotten tasks through automated notifications.

The bank’s strong customer growth has been invigorated by these advanced digital offerings, Sareen said.

“People are increasingly looking for a seamless digital experience from their service providers and the onus is on banks to provide that experience. For us by far the majority of our customer interactions are via the mobile app.”

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