Australian borrowers are giving brokers a resounding vote of confidence, with close to 75 per cent of all home loans now sourced through the broker community. To put in perspective, this is an increase from less than 50 per cent 10 years ago.
In turn, the partnership between banks and brokers has never been more important and at the core of our partnership is the loan application process. It’s the key point at which we come together to deliver a great experience for our clients, establishing trust and laying the ground for beneficial long-term relationships.
Through the development of our new application process with Simpology, we’re using technology and pioneering innovation to transform our end-to-end experience for brokers and their clients.
1. Multisystem integration
An API – application programming interface – first technology approach enables seamless integration with third-party services and existing systems through the application process, such as MSA National’s legal platform. This ensures smooth data flow, enhancing connectivity and operational efficiency.
By allowing real-time access to borrower data, APIs also facilitate more rapid lending decisions based on objective criteria, reducing manual reviews and approval times. Additionally, they provide flexibility and scalability, enabling the platform to adapt to changing business needs and integrate new services easily.
2. Automated underwriting systems
Automated underwriting systems can quickly assess loan applications and determine eligibility based on predefined criteria. This reduces the need for manual reviews and speeds up the decision-making process, allowing brokers to receive faster approvals for clients. By analysing borrower data in real time even before the application is submitted, these systems enable lenders to make rapid lending decisions based on objective criteria such as credit scores, income and expense verification, and debt-to-income ratios.
The automation of these processes not only reduces human error, but also ensures consistency and fairness in lending decisions. Additionally, automated systems can flag potential issues early in the process, allowing brokers to address them promptly before they submit the application and avoid delays.
3. Digitised document management
Digital document management systems streamline the collection and verification of required documents, minimising delays and ensuring that all necessary information is readily available. This reduces the administrative burden for brokers, accelerates the approval process, and, importantly, avoids duplicate request from customers from brokers and banks. By managing the loan cycle online, lenders can transform lending processes from prospecting and origination to underwriting, disbursement, and servicing through the latest technologies.
Modern loan processes include fully digitised identification processes, upfront verification of credit-critical data prior to submission, and instant feedback on application data to allow real-time decisions.
This, combined with straight-through processing capability and simplified business rules, enables market-leading approval times and gives brokers more confidence in the application’s outcome from the outset. Furthermore, digital document management systems enhance security by reducing the risk of document loss or tampering.
4. Customer relationship management (CRM)
A sophisticated CRM platform allows brokers to track the progress of loan applications in real time, enabling instant updates on the status of clients’ applications and allowing brokers to keep clients informed and address any issues promptly. This transparency and real-time visibility significantly reduce the follow-up and time the broker needs to spend on the deal post-submission and enhances the overall customer experience.
CRM platforms also facilitate better communication between brokers and lenders, ensuring that any queries or concerns are addressed quickly. Additionally, CRM systems can store and analyse client data, helping brokers better understand their clients’ needs and preferences and tailor their services accordingly.
5. Omni workflows and task management
A single unifying dashboard to configure workflows, tasks, teams, and responsibilities from lodgement through to fulfilment. This centralised approach ensures that all stakeholders are on the same page and that tasks are completed in a timely and efficient manner.
By automating routine tasks and providing clear visibility into what needs to be reviewed and status of each application, omni workflows and task management systems help eliminate bottlenecks and reduce the time to loan approval. Furthermore, these systems can be customised to meet the specific needs of different lenders and brokers, ensuring that they are both flexible and scalable.
6. Journey building
A multi-journey, any-device ecosystem to engage with clients in the most convenient and targeted way. Journey builder tools allow lenders to create personalised and seamless experiences for their clients, guiding them through the loan application process step by step.
By providing clients with clear instructions and real-time updates, journey builder tools help reduce confusion and ensure that applications are completed accurately and efficiently. Additionally, these tools can be used to automate follow-up communications, ensuring that clients are kept informed and engaged throughout the process.
7. Cyber security
Ensuring the security of client data is paramount in the mortgage industry and technology platforms offer bank-grade security measures to help protect sensitive information from unauthorised access and cyber threats. This incorporates security governance, risk management, and compliance, including encryption at rest and in transit, network security, and system monitoring.
Through robust security protocols, brokers can more easily comply with regulations, build trust with their clients, and ensure that their data is handled with the utmost care.
8. Digital engagement tools
Secure portals for digital interactions between lenders and customers, digital fact find and Info Request portals, and digital lender serviceability calculators. These tools enable brokers to collect and verify client information quickly and accurately, reducing the time to loan approval.
By providing clients with easy-to-use digital interfaces, brokers can enhance the overall customer experience and ensure that applications are completed efficiently. Additionally, digital engagement tools can be used to provide clients with personalised loan recommendations and financial advice, helping them make informed decisions.
The integration of advanced technologies is continuing to transform the loan approval process. By taking full advantage of these innovations, banks are able to streamline the process, reduce approval times, and provide a superior experience for brokers and their clients.
As the mortgage industry continues to evolve and cement itself as an essential service, the adoption of the latest technology in the loan application will support client experience, operating efficiencies and help drive business growth.
