the adviser logo

Tic:Toc to undercut broker distribution in white label play

by James Mitchell5 minute read
Boxing gloves

Mortgage brokers are facing a double threat from online lender Tic:Toc, which is seeing a surge in demand from consumers and interest from banks and non-bank lenders looking for cheaper distribution.

Tic:Toc promotes its quick turnaround times and convenience. The group only offers its own branded mortgages, which it says can be approved within 22 minutes through a completely online process. The fintech started lending four months ago and has received approximately $330 million of applications in that time, with conversions hovering around 17 per cent this month.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

“The new competitive battleground in mortgages is speed, and that is best delivered through an end-to-end digital fulfillment process like ours,” Tic:Toc founder and chief executive Anthony Baum told The Adviser.

“I don’t just mean time to decision. Convenience is also an important factor. What we know about consumers is that a growing segment are happy to self-service and are getting more used to self-serving through fulfilling other requirements digitally in terms of purchasing products and services.


“At the end of the day, the feedback we are getting is that it is really easy, customers don’t feel pressured and they don’t feel sold.”

The online lender is currently funded by Bendigo and Adelaide Bank and offers four mortgage products. An interest-only mortgage for property investors is due to launch in the coming weeks.

Mr Baum said that the company has plans to partner with more bank and non-bank lenders looking for a cheaper distribution channel than mortgage brokers.

He explained that the digital origination process cuts costs for both consumers and funders.

“It really does open up the distribution angles and fulfillment angles. We think that is a very powerful change,” Mr Baum said. “It could be any corporate whose brand stretches to financial services products, including non-banks. We are working on some of those arrangements as we speak and hope to make some announcements in the new year.”

Unlike some fintech players looking to disrupt the home loan market, Mr Baum has extensive industry experience, having led Bendigo and Adelaide Bank’s third-party business for close to four years.

In addition to its broker ties, Adelaide Bank is a prominent wholesale funder for mortgage managers and aggregators and is widely regarded as one of the more innovative lenders in the market.

The threat of digital disruption has increased for brokers in recent years. However, many still believe that face-to-face contact with a mortgage professional will continue to be the preferred choice for Australian borrowers.

“My opinion is home loans are not actually as complicated as the industry makes out,” Mr Baum said. “They are really a means to an end, which is more a utility-style product.

“Having said that, there are certain customers who have complex situations who will always need to seek advice.”

[Related: Aussie lenders make Fintech 100 list]

Tic:Toc to undercut broker distribution in white label play
boxing gloves
TheAdviser logo
boxing gloves

James Mitchell

James Mitchell


James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.


You need to be a member to post comments. Register for free today


mark pesce futurist ajxjkn

Automation is changing, not replacing, the role of finance brokers

On Thursday (4 August), the Australian Financial Review (AFR) ran a story with the headline: “Finance brokers top...

des hang carbar zaheer jappie carclarity ta qtvnqr

CarClarity confirms partnership with car subscription platform

Established in March 2020, CarClairty is a finance platform that connects car buyers with more than 30 different...

anthony albanese profile ta vtpifc

Further grants confirmed for flood survivors, $47m pledged

According to a statement released by the federal government, the Back Home grant will be made available to impacted...

Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more