Login
ISCOVER
The specialist lender is piloting a new tech platform that uses AI to support borrowers in fully understanding their obligations before committing to loans.
Non-bank lender RedZed has begun the pilot of a new technology platform that aims to help borrowers better understand their financial commitments when taking out loans.
RedZed, which focuses on lending to the self-employed, developed the AI-supported platform with education start-up Humbli.
The pilot of ‘Dynamic Disclosure’ started on Thursday (5 June) with aggregator partner Australian Finance Group (AFG) and will be available to all RedZed-accredited brokers and their customers over the coming months.
Dynamic Disclosure aims to increase responsible borrowing through features such as pause points to encourage customers to reflect on terms and conditions before committing to loans.
Brief educational videos are aimed at simplifying financial concepts and highlighting the most important information, allowing for a more inclusive learning experience.
The platform also uses interactive document overlays to highlight definitions and clauses, making documents easier to understand and navigate.
Commenting on the tech, RedZed managing director Calvin Cordle said: “Financial literacy shouldn’t be a barrier to responsible borrowing. Our partnership with Humbli ensures that our customers are not just receiving a long list of T&Cs; they are engaging with them in a meaningful way.
“At RedZed, we’re committed to making the lending process seamless and stress-free for both brokers and customers. This digital solution aligns perfectly with our values of providing a simple and fair process and delivering fast service.
“By integrating this tool into our lending experience, we aim to provide customers with an added level of support and education and empower brokers to take their service offering to the next level.”
Damien Farrell, Humbli CEO, said: “Disclosure should do more than check a box; it should encourage engagement and reflection.
“We’re rebalancing the power equation between lenders and borrowers by introducing mindful friction to reduce ‘blind acceptance’ and increase the opportunity for consumers to understand their commitments.”
Humbli board chair Belinda Gibson said: “For too long, financial disclosure has been just a legal obligation rather than a meaningful consumer protection tool. The industry has an opportunity to change that.”
RedZed’s latest tech launch follows a move last month that saw it become the first lender to launch new serviceability calculators developed by Quickli.
[Related: RedZed launches Quickli-built serviceability calculator]
JOIN THE DISCUSSION