The boss of Australia’s largest data provider believes the online mortgage market is set for a significant breakthrough as disruptors embrace revolutionary new technology.
Just as mortgage brokers and non-bank lenders brought competition to the market by offering an alternative, new online players are set to shake-up the local home loan market and become the catalyst to drive innovation in both new and existing mortgage businesses.
CoreLogic chief executive Graham Mirabito told The Adviser that while fintech players are still in their infancy in Australia the sector is “about to explode”.
“We are very excited with where it is going. In the United States, CoreLogic provides services to Wells Fargo and Quicken Loans. They are all big customers of ours as are the peer-to-peer lenders,” Mr Mirabito says.
“The key here is that digital enablement has to back it up with fulfilment. It is no good doing a mortgage application online and then filling in a bunch of forms afterwards,” he says.
“I think Click Loans is probably one of the best examples we’ve got here in Australia; just as good if not better than Quicken in the US in terms of their speed and the way they go about their business. That is the new norm.
“This may be in its infancy but it is about to explode.”
Australian Credit and Finance launched Click Loans last year, inspired by recent disruptors like Uber and Airbnb.
David Hyman, managing director of Australian Credit and Finance, said the new venture was in response to changes in technology and consumer attitudes.
“Consumers have become used to platforms such as Uber and Airbnb which have changed the delivery of products and services to them,” he told The Adviser.
“We really saw an opportunity with Click Loans to communicate with people about their loan application in a way that they’re used to by bringing a great online experience in a very simple and easy fashion.”
Mr Hyman said many of his customers are already using online mortgage providers to compare mortgages, but are not satisfied with their level of personal service.
Meanwhile, as the key data provider for the Australian mortgage and real estate industry, CoreLogic has been doing extensive work around machine learning and artificial intelligence. Mr Mirabito said these and other new technologies such as voice recognition and the internet of things (IoT) will speed-up the digital delivery of mortgages over the next few years.