New tool to reduce risk and boost compliance efficiency

The solution provider and business consultancy noted that the new compliance tab in the ApplyOnline platform evolved out of a working group setup by the major banks to devise the best way to deliver The Broker Interview Guide for Regulated Lending Secured by Residential Property.

NextGen.Net, which was invited to participate in the working group, stated that they advocated for a universal and standardised solution, which brought about the design and development of the compliance tab, in support of the working group’s “unanimous resolve” to ensure consistency and efficiency when capturing borrowers’ requirements and objectives (R&O).

“We’ve developed a smart, standardised solution for all lenders. It’s clearly more efficient for brokers to have one solution as opposed to 40 different solutions for 40 different lenders,” NextGen.Net sales director Tony Carn said.

“The ApplyOnline compliance tab provides brokers and lenders with a consistent process that will reduce the risk of data-input errors and minimise the re-keying of information and overall changeover costs.”

As the compliance tab is to be completed and submitted in conjunction with a loan application, is it hoped that it will help enable lenders to verify that lending is consistent with borrower R&O.

According to NextGen.Net, the tool is standardised for all lenders, leverages a “dynamic rule base” to ensure only relevant information is requested, captures data in a consistent format and enables what regulators are requesting.

The company also stated that the compliance tab ensures that data is pre-filled where the answers are able to be determined from loan application data.

“During the design and developmental phase of the compliance tab, our focus was on a solution that enables lenders to remain compliant in the new and changing environment while also maintaining efficiencies. In other words, a seamless transition to compliance adherence,” Mr Carn concluded.

Responsible lending and compliance has been a key point of focus for the industry recently, following the ongoing royal commission into misconduct. Speaking to The Adviser during the first episode of its webcast series, Responsible lending: Has the game changed?, Opica group chairman Brett Spencer encouraged brokers to adopt compliance technology to help ease regulatory burdens.

“There’s a number of technology providers who have come out that can provide the data, can provide [brokers] with the bank statements,” the chairman said.

“It’s about adopting platforms that actually provide you with the responsible lending ability to look at [a customer’s] transactions and find those undisclosed debts,” he said.

[Related: Non-bank lender adopts tech platform]