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ID verification company ZipID (acquired by Veda in 2015) received overwhelming demand for its broker webcasts in mid-December and is currently working with a number of aggregation groups to streamline ID checks for the Australian mortgage industry.
ZipID has been working with a handful of aggregators including AFG, Connective and Vow Financial to help streamline what ZipID co-founder Sean Simmons calls a ‘thorny issue’ for brokers – ID checks.
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Sixteen lenders are now trialling brokers' use of the ZipID mobile app, which guides consistent face-to-face ID checks, removing the need for current paper work and filling out lender's ID forms.
“One of the phrases we use is 'ID done once. Done right.' It’s a lender agnostic solution. As a broker undertakes their assessment and their fact-find with their client, they don't want a specific ID or solution for Bank A, they want a simple, one-size-fits-all solution,” he explained.
According to Mr Simmons, feedback from brokers already using the ZipID app has been strong, citing that it's simple and easy to use at client meetings.
In response to broker interest, the company ran a series of webinars for more than 500 AFG brokers in mid-December. A surge in demand forced the group to put on additional webinars, where according to Mr Simmons, feedback from brokers further validated that ID checks were still a sore point for many.
The group recently launched a pilot rollout with 16 lenders through AFG. Similar rollouts are underway with Connective and Vow Financial. Mr Simmons said that so far, the feedback has been encouraging.
“Many lenders are now seeing that they can encourage their brokers to have this conversation. Their BDMs are starting to say to brokers: ‘Hey, we've got something extra for you’ and presenting them with ZipID – a new, streamlined way of doing ID checks for successful loan applications.”
The ZipID service works on a ‘lender pays’ model and is free for all mortgage brokers.
It also provides a ‘come to you’ agency service to support brokers who cannot meet their clients face-to-face. Mr Simmons explained that this model has been popular with phone-based and online brokers such as Australian Credit and Finance and iSelect.
[Related: ING DIRECT's new mortgage process to accelerate approvals]
