An aggregator has introduced an option for brokers to have their loans processed in-house, which includes fraud prevention processes.
Finsure Group has embedded new support measures and processes in its loan processing centre, including a fraud protection service.
The aggregation division of BNK Banking Corp said that its brokers will have the option to have their loans processed through an in-house broker support service, which includes a fraud prevention specialist.
The support measure has been implemented to help the broker network deal with any threats from “increasingly sophisticated” fraud schemes, Finsure said.
According to Finsure Group general manager Simon Bednar, when a broker’s loan application is being processed through the aggregator’s broker support team, the fraud prevention specialist will assess and verify the authenticity of the broker’s loan applicants’ details, documents and any additional supporting material that is subject to fraudulent activity.
He added that the specialist will help verify customer identification documents supplied with the application as well as employment details of the loan applicant, as well as payslips, bank statements and all other relevant supporting documentation for the loan, he said.
Commenting on the support measures and the inclusion, Mr Bednar said that fraud schemes have become increasingly complex and a rising threat to the mortgages industry following the recent tightening of compliance requirements across the industry along with the introduction of new technology.
“Two of Australia’s largest banks have been ordered to pay fines and remediation in excess of $2 billion for breaches of the anti-money laundering (AML) framework,” Mr Bednar said.
“In addressing this, Finsure’s fraud prevention process utilises both AML sanctions testing and politically exposed person (PEP) screening to assist in the mitigation of these risks for lender and broker alike.”
He continued: “As your loan application is being processed through the broker support team, a fraud prevention specialist will assess and verify the authenticity of your loan applicant(s) details, documents and any other supporting material that is subject to fraudulent activity.”
Mr Bednar explained that the process was designed to mitigate some of the risks brokers face when receiving applications from referrers and consumers, including undisclosed liabilities, undisclosed dependents, falsified income documentation, and incorrect employment status.
“Finsure fraud prevention experts utilise a range of technology-based and industry standard procedures to ensure the safety of broker accreditation,” he said.
“In addition to independent verification of employment by way of telephone-based employment checks, our fraud prevention process team utilises a document verification service to confirm the authenticity of identification documents provided in support of applications which has the capacity to integrate facial recognition and identity theft.
“Barcoded documents are scanned and compared against supplier records to ensure every possible step is taken to ensure Finsure brokers are protected from disingenuous borrowers and falsified documents.”
Finsure settlements up 35 per cent YOY
BNK Group has released a trading update for the third quarter of 2021 (3QFY21), in which it reported that Finsure’s loan settlements totalled $5.0 billion, representing a 34.8 per cent year-on-year increase, the group reported.
The group reported that settlements reduced by 5.2 per cent quarter-on-quarter.
Finsure – which has 1,960 brokers in its network – reported that its total loan book increased by 20.4 per cent year-on-year and 4.1 per cent quarter-on-quarter to total $52.2 billion in 3QFY21.
The aggregator’s 3QFY21 electronically submitted lodgements (through its gateway excluding manually or directly submitted lodgements to lenders by Finsure brokers) totalled $14.1 billion in 3QFY21. This represents a 9.7 per cent quarter-on-quarter growth and 55.9 per cent year-on-year growth.
BNK Group’s total loan book was at $54.6 billion in 3QFY21, up 19.1 per cent year-on-year, and 4.0 per cent quarter-on-quarter.
The lending portfolio of BNK Group’s non-bank arm (which includes Better Choice Home Loans) remained largely stable quarter-on-quarter at around $2.4 billion at 3QFY21, but dropped by 3.9 per cent year-on-year.
Lending settlements for 3QFY21 increased by 26.7 per cent year-on-year and 57.2 per cent quarter-on-quarter to total $158.2 million.
BNK Bank’s loan book increased by 37.9 per cent year-on-year and 28.5 per cent quarter-on-quarter to total $393.5 billion, while settlements spiked by almost 210.0 per cent year-on-year and 203.1 per cent quarter-on-quarter to total $108.1 million.
Deposits increased by 22.4 per cent quarter-on-quarter to total $479.1 million in 3QFY21, representing a 41.2 per cent year-on-year increase.
Commenting on Finsure’s results, CEO John Kolenda said: “Finsure has started the year as it finished 2020, by continuing to grow. Loan lodgements during the quarter were up 31.0 per cent year-on-year and 6.0 per cent quarter-on-quarter, and this is a positive forward-looking indicator for the business.”
BNK Group’s CEO banking and wholesale, Brett Morgan, also spoke about BNK Group’s performance, stating: “Using market insights and through product innovation, this quarter we demonstrated our group’s ability to deliver strong growth across both sides of the balance sheet.
“Of particular note was the growth in our higher margin BNK-funded lending book, which grew by 29.5 per cent in the quarter.”
[Related: Finsure reports new settlement record]
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Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.
Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.
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