One of Australia’s biggest real estate names, REA Group, is to partner up with Open Banking fintech Frollo to roll out a new Financial Passport that could see the home buying process significantly sped up.
The new passport will utilise Open Banking tech to empower customers through the home buying process, giving them the chance to see up-to-date financial information while searching for properties on realestate.com.au’s huge database.
“Streamlining the mortgage lending experience is one of the biggest, immediate opportunities for Open Banking,” said Gareth Gumbley, CEO of Frollo, whose software will power the process.
“The secure use of real time, accurate financial data can make a mortgage application a breeze for consumers, while reducing risk and cost for lenders and brokers.”
“What we’ve launched with REA Group today is a first step to making home buying more accessible for consumers, using the Frollo Financial Passport.”
“Millions of home buyers on the REA platform can now instantly generate an Open Banking-powered income & expense report, helping them decide their budget early on in the home buying process.”
“In this Proof of Concept we don’t share data with REA Group directly, but the consumer can upload the information to their REA account. This has removed the need for REA to get accredited and has reduced their time to market to less than 6 weeks.”
“A major Australian consumer platform like REA Group launching an Open Banking powered product is a big milestone for the Consumer Data Right, and we’re excited to be a part of this.”
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For brokers, this can offer great assistance in managing customer expectations regarding the sort of loan they can get, and what that loan might be able to buy on the current market.
“Brokers can expect the conversations they have with customers about financial capacity to be more informed on both sides,” said Gumbley.
“The broker will get an accurate overview of their customers’ income, expenses, assets and liabilities, powered by the Consumer Data Right.”
“And the customer gets an easy to read PDF to help them better understand their financial situation. Both parties are looking at the same overview of finances enabling the customer to get to financially fit faster!”
“When brokers work with Frollo directly, they can integrate the Financial Passport straight into their workflow. They just send their customers a link and Frollo takes care of the rest. Within minutes the broker will receive a Financial Passport in the format they want. Brokers can also decide to automatically share a PDF version of the Financial Passport with their customers.”