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AMP targets faster turnarounds with new tech

by Sarah Simpkins5 minute read

AMP Bank has signalled that it is investing in technology to speed up the home loan approval process, starting with digital signatures.

The non-major bank has launched digital signatures (eSign) for loan applications and from 21 March will provide comprehensive credit report functionality.

AMP Bank has said it is investing in technology to simplify and speed up the mortgage approval process for brokers and their customers.

The eSign functionality will allow customers to sign their application form and borrower interview guide online, in addition to the electronic signing feature already available for loan documents.

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In addition to removing the need to print and physically sign documents, it will also axe manual verification by AMP Bank.

The service is being powered by software providers NextGen and First Mortgage Services.

Meanwhile the Comprehensive Credit Report “Access Seeker” service provided by Equifax and NextGen, will give upfront visibility of customer liabilities without impacting the customer’s credit file.

The bank’s application portal will supposedly flag missing information from an application.

AMP Bank had made adjustments to its auto credit decisioning engine, reportedly resulting in a 75 per cent improvement in the automated decisioning rate.

Sean O'Malley, AMP Bank group executive, commented the new functionality is important to “simplify and improve the lending experience for brokers and advisers”.

“The technology reflects AMP’s ongoing strategic investments to enhance AMP Bank’s systems, and commitment to further reduce loan approval times and increase home loan origination capacity, which increased by 70 per cent last year,” he said.

“Our focus this year is to further digitise and automate lending processes, which will continue to make it easier for brokers, advisers and customers to do business with us.”

AMP chief executive Alexis George has previously flagged a focus on brokers, as the bank has become a larger part of the greater group, following the demergers of its asset management and life insurance businesses.

As such, the bank contributed 32.5 per cent of the group’s net profit after tax ($111 million out of the total $341 million) during 2021. The once-dominant AMP Capital was almost on par, generating 38 per cent of the group’s profit.

The bank recorded a 5 per cent uptick in home loans over the 2021 year, up to a final book balance of $21.7 billion. The vast majority (90 per cent) of residential mortgages were written through the broker channel (up from 84 per cent in 2020).

However, Ms George has also indicated that the group’s growth plans include establishing a direct-to-consumer digital proposition and partnering with fintechs.

AMP Bank had plans to launch digital mortgages this year.

“Despite the increase in broker originated loans, the bank has the ambition to grow its direct channel in order to maintain its competitive cost to income ratio,” AMP’s 2021 investor report read.

The bank also recruited Melissa Christy as its new head of lending operations and client assist in February, after she had led the home lending business at neo-lender 86 400.

[Related: Salestrekker partners with digital signature start-up]

digital signatures

Sarah Simpkins

Sarah Simpkins

AUTHOR

Sarah Simpkins is the news editor across Mortgage Business and The Adviser.

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