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Fintech launches with 22-minute home loan

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Australian Broker | 11 Jul 2017, 09:00 AM Agree 0
The industry newcomer is pushing the idea of an ‘instant’ home loan approval process without the need for a mortgage broker
  • Tim | 11 Jul 2017, 09:15 AM Agree 1
    Interested to hear ASIC's thoughts on a 22 minute home loan and how it fits in with the responsible lending framework. A home loan is the largest financial commitment someone will have and should justify the investment of more time to ensure they understand what they are entering into. I'm a broker and cannot believe these storeys about 22 minute home loans, especially in the current environment.
  • Gary | 11 Jul 2017, 09:22 AM Agree 0
    I too am interested how a Major Lender can allocate such a quick process when as a Broker we are subjected to un realistic time frames for a decision even when all supporting documents provided. If all this does is provide an AIP then where is the benefit?
  • PF | 11 Jul 2017, 09:25 AM Agree 0
    Sounds exactly like cherry picking to me.
  • Tanya | 11 Jul 2017, 09:25 AM Agree 0
    If this is the case and it takes 22 minutes why doesn't a broker who is using Adelaide and Bendigo bank get the same service levels. As a broker l wait up to 48-72 hours for a conditional approval. Something doesn't seem right here??
  • Buderim Broker | 11 Jul 2017, 09:26 AM Agree 0
    What an absolute joke, how could you even know what your clients needs are in less than 22 minutes, there is no system that can answer all those questions and provide an adequate answer ensuring 'a positive client outcome' in that amount of time.
    To make things worse they are just an agent of one lender who's rates are general not competitive in the current market.
  • Cubeman | 11 Jul 2017, 09:29 AM Agree 0
    Of course, until someone comes along with 21 minute approvals or for those that remember Something About Mary = "6 minute abs!"

  • Julio | 11 Jul 2017, 09:38 AM Agree 0
    This tech is available and I agree it is about time. If a customer meets the criteria, why should the decision not be made electronically and instantly. It is not hard to see that there will be strict criteria and not everyone will be eligible for the fast answer, but a lot will. brokers who do not get on board with the revolution will be left behind in a big way.
    There will always be the need for the face to face element in some instances even if it is for the broker to step a client through the online process.
    • OzBoy | 11 Jul 2017, 10:17 AM Agree 0
      "why should the decision not be made electronically and instantly", hi Julio, well I think there are a couple of reasons why but probably the most important is that it doesn't comply with NCCP and KYC. "brokers who do not get on board with the revolution will be left behind in a big way" ah this is not for brokers it's for the consumer so nothing here for us. "even if it is for the broker to step a client through the online process" ah again I don't think you understand what a broker does we would never step a person through an online application that is something a support person would do, we actually offer advice and structure loans. Thanks for your input and I hope the above helps.
  • Concerned | 11 Jul 2017, 09:46 AM Agree 0
    I ran a scenario, only gave me one choice of a loan that was fixed, (Which they recommend) no warnings of break fees. Rough estimate of expenses. Fail
    • Fixed! | 11 Jul 2017, 11:01 PM Agree 0
      Fixed reduces clawback risk. Should ASIC comment on clawbacks?
  • Jiv | 11 Jul 2017, 10:16 AM Agree 0
    So I am guessing that Adelaide and Bendigo Banks are going to streamline the process for broker's too? Interesting to see how ASIC will regulate the double standards with online platforms vs. manual proper broker vetted application. Vanilla deal or not, it should be assessed the same way!
  • Albert | 11 Jul 2017, 10:18 AM Agree 0
    So they should be able to roll this out to brokers who are actually sitting with the client and can verify the validity of the information, RIGHT.
    Or is this just an attempt to cut the brokers out?
  • Brian | 11 Jul 2017, 10:34 AM Agree 0
    No way any bank in Australia could validate and approve a deal in 22 minutes. If banks can offer this platform directly there is know way tic toc can. Is this another company pretending to be the next uber and not actually being the next uber.
  • EL | 11 Jul 2017, 11:05 AM Agree 0
    It seems we're focusing on the wrong 'value add' technology should bring to credit advisers. The problem is not time. The proble is tripplcate data entry and client info and assets not flowing onto a document that is meaningful and différenciate me from everyone else.
    We need:
    - user friendly "one-off" data entry
    - data to flow through every aspect of the advice creation process technology, reducing errors, therefore truely time efficient
    - a TRUE and advance comparison tool for credit and income policies, that help triage all lending providers
    - technology that allows all client data to merge into a client facing credit advice report = that IS meaningful to my clients. Telling them a succinct story about the strategy and solutions. Allowing me to customize it to reflect our IP, strategies, and our practice value add service. Not a vanilla spitting fin tech software. Not hard. No one is focussing on the need and real time consuming issues.
  • LFH | 11 Jul 2017, 03:07 PM Agree 0
    What a clever idea by Tic Toc. Imagine the amount of people who are 'referred' and have to have their enquiry managed by a traditional Tic Toc branded 'Mortgage Broker'. A brilliant lead generation tool. Wish I had thought of it.
  • Amused | 11 Jul 2017, 06:22 PM Agree 0
    So are Tic Toc a brokerage? If so wouldnt they need more than just one lender on their panel? Please correct me if I am wrong however the NCCP states that brokers need a minimum of at least 6 lenders to be classified as a broker. These guys are just a glorified mobile lender for ABL
  • LCRaider | 11 Jul 2017, 07:00 PM Agree 0
    So basically they are just a retail arm of Bendigo & Adelaide Bank. How does that add any competition and why are they a fintech if all they do is sell an online home loan.....aren't they an online broker......not much fintech here if it only for the benefit of one source.....
  • RTrishL | 12 Jul 2017, 10:27 AM Agree 0
    Very interesting regarding the NCCP Responsible Lending obligations. How can a 'robot' know what my needs and requirements are if I'm just typing stuff in. Never mind, my property in the capital city can't be refinanced according to this robot. Bombed out from the beginning...what tha? Give me a fair dinkum person to talk to anytime.
  • gsaros | 15 Jul 2017, 11:08 AM Agree 0
    What if a full valuation is required? Even if referred, no way it can be done in 22 minutes plus the additional 15 minutes for a manual assessment. The valuer will need at least a day to conduct a site visit and return a valuation report.
  • | 15 Jul 2017, 02:44 PM Agree 0
    Disgraceful, considering HEM issues at the moment. I take the computer audits bank statements for livinig expenses? Great fact finding for loan purposes. How did they get a licence?
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