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Aggregator launches ‘fully digital home loan’

digital technology user digital technology user
Annie Kane 8 minute read

Connective Home Loans has launched a new digital home loan to its white-label offering that can reportedly provide unconditional approval in minutes.

Connective Home Loans (CHL) has partnered with Digital Mortgage Solutions – the technology provider to Nano Home Loans – to offer its broker members a “fully digital home-loan”, where brokers can receive unconditional approval for the client “in minutes”. 

The new product, called Connective Affinity, will be unveiled to brokers today (7 December) during a Connective webinar demonstrating the new product. 

While the white-label loan is initially only available for 75 per cent refinances (PAYG clients on interest-only and principal and interest [P&I] for both owner-occupiers and investors), the aggregator has said that it will expand this out to purchases and broader offerings from early next year. 

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It will also offer a fee-free 100 per cent offset sub-account (which can be tied to Apple Pay/Google Pay) and a “fully-featured internet banking app”.

Turning the process on its head 

According to the aggregator’s lending division, the credit decision engine has been integrated into Connective’s Mercury Nexus so that there is a “constant dialogue” between the assessment engine as the broker inputs client data, which enables the system to assess the loan in real-time as the information is input.  

Connective chief executive Glenn Lees told The Adviser that this means that “as the broker builds up the picture of the customer situation, that loan is being assessed in real time, turning the process on its head.”

Mr Lees explained: “Rather than collating information and submitting and waiting to see whether a loan can be approved, with Connective Affinity we’re starting from the basis that it’s a yes, and if at any point the loan doesn’t fit, the system will let the broker know as they’re inputting the information into Mercury Nexus.

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“So, our finish line is, for most lenders, their start line.”

Once an unconditional approval has been offered, should the consumer choose to progress with the loan, they are then asked to complete digital verification of identity checks, provide access to open banking data/bank statement retrieval, and an online credit check.

According to Connective Home Loans, once these are completed the loan can be approved “in minutes”.

Mr Lees continued: “We often hear from brokers that they’re concerned that digital mortgage offerings means that they could get sidelined, or that their value proposition goes away. Were firmly of the view that thats not the case. 

“We think that whole explosion in digital loans actually adds to the complexity in the market. Just because a consumer can go onto a website, fill in a form and get a loan approved doesnt mean that they will – and it certainly doesnt mean that they should without a real understanding of what it is.

“The fundamental thing that brokers do is take a very complex market that is really hard for the consumer to understand and distill it down into something that is understandable and enables the consumer to make a decision.

“So, we think the combination of the whole digital way of doing things – the speed and accuracy – coupled with a brokers expertise, their Best Interests Duty obligation and responsible lending obligation, is a super powerful combination.”

Mr Lees continued: “Connective Affinity will give our members a substantial competitive advantage, giving them the power to help their clients faster, giving them peace of mind that they won’t miss out on an opportunity just because of a pending loan approval that might take weeks or months. 

“Connective Affinity will recalibrate the industry norm when it comes to turnaround times, offering unconditional approval in minutes compared to the current median of 14 days...

“We think it can be a game changer for brokers. It keeps them at the forefront of relevance in a rapidly digitizing world.”

The head of Connective Home Loans, Michael Goerner, suggested that the new product expands Connective’s white-label suite to be the “broadest and most advanced white label offering in the market”. 

Brokers will be able to show the client, in their office, whether or not the loan is approved or not as they are sitting there with them,” he said.  

“We tested it with a small pilot group of large volume brokers to [make] sure it was right before delivering it to market and we’ve already settled a couple of loans so far. The testimonials from brokers involved in the pilot was they they’re loving it.

“Due to the low touch nature of submitting an application directly to Connective Affinity through the Mercury Nexus platform, this process can take as little as five or 10 minutes, freeing up more time for Connective brokers to work on important aspects of their business and give them the ability to write higher volumes.” 

[Related: Connective Home Loans makes BDM appointments]

Aggregator launches ‘fully digital home loan’
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digital technology user
Annie Kane

Annie Kane

Annie Kane is the editor of The Adviser and Mortgage Business.

As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts. 

Email Annie at: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

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