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The broking group has backed calls for the digital VOI to continue to form part of the lending process beyond the COVID-19 crisis.
Featuring in a panel discussion hosted by the Australian Securities and Investments Commission (ASIC) as part of its Regtech Responsible Lending Demonstration webinar, Loan Market’s chief compliance and regulation officer, David McQueen, highlighted the merits of digital verification of identify (VOI) in the lending process.
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Mr McQueen said digital VOI tools – which have been temporarily adopted in response to the COVID-19 crisis – align with evolving customer expectations and should become permanent fixtures in the loan application process.
The Loan Market executive added that the approval of digital VOI practices by the Australian Registrars’ National Electronic Conveyancing Council (ARNECC) would serve as a strong signal to the broader market.
“My hope would be that we don’t go back to what it (VOI) was before COVID-19,” Mr McQueen said.
“[Over the next five years] working within the mortgage space, the clients we are going to be dealing with are going to change. Clients are going to be far more comfortable with using digital tools.
“For a lot of larger institutions, we know it’s harder to make change happen. But it’s in their interests to speed up their ability to change. Especially when it’s the right thing to do for the institution and the consumer.”
This comes amid findings from a survey conducted by mortgage broking platform HashChing, which found that 91 per cent of broker respondents believe temporary changes to the mortgage application process in response to COVID-19 should be made permanent.
Managing director of the Finance Brokers Association of Australia (FBAA) Peter White also recently noted that the adoption of digital processes has been one of the only positive developments in recent months.
Mr McQueen also stressed that the financial services industry should focus on educating stakeholders on the broader benefits of technological innovation in the sector, particularly in light of the commencement of the open banking regime through the Consumer Data Right (CDR).
The Loan Market executive made reference to research from the United Kingdom, which found that 95 per cent of residents were unaware of the utility of the CDR.
Mr McQueen said consumer education would open new opportunities for the financial services sector.
[Related: Brokers calls for permanent adoption of digital mortgage process]
