Challenger bank 86 400 has partnered with mortgage software provider FMS to utilise its eSign solution for mortgages.
Last month, neobank 86 400 announced the official launch of its home loan product suite, which aims to reduce the time taken to write and settle a loan via its digital solution.
The neobank has stated that its paperless digital home loan solution process is up to six times faster than the big four banks, achieved through its partnership with a range of software companies.
Mortgage processing and administration service provider FMS has now announced that the company’s eSign solution has been utilised by challenger bank 86 400 to deliver its paperless mortgage experience.
The technology creates the necessary loan documentation at the loan approval stage and delivers it to the borrower in order to obtain electronic signatures, which is said to reduce processing times by minimising the rate of manual signing errors.
Additionally, integration between FMS and PEXA allows for the facilitation of electronic settlement and the final stage of the digital loan process.
Melissa Christy, lending product lead at 86 400, stated that reducing the processing time for loan applications through digitisation is key to 86 400’s operations.
“Allowing our customers to accept the loan offer in hours instead of days is an important part of our customer experience,” Ms Christy said.
“Collaboration with innovative partners, such as FMS, has been key to our ability to provide a digital service from approval to settlements.”
The digitised loan process
At the time of the launch of 86 400’s digital mortgage product, Ms Christy noted that the lender sought to identify and address key “pain points” among mortgage brokers, by providing them with a “fully digital solution” that “delivers a faster time to a home loan decision, with next to no paperwork”.
“We’ve greatly sped up the time for an approval,” Ms Christy said last month.
“We also looked at traditional lenders, which have a list of supporting documents [that] need to be submitted with the application of three to four pages.
“We are collecting information from customers digitally, so we have reduced the amount of paperwork needed.”
The digitised process includes electronic statement capture, mobile identity verification, electronic signatures and reduced paperwork requirements.
In order to provide the above functionalities, 86 400 has partnered with Simpology, MaxID, Mogoplus, Loanworks, Equifax, CoreLogic, as well as FMS.
Ms Christy added: “Our smart technology works on the brokers’ behalf, to make their life simpler every step of the way.
“We know mortgage brokers drive competition and choice for consumers, which is why we have focused on erasing their pain points so they can deliver the best value to customers.”
[Related: Neobank launches to the public]