Brokers now able to access open banking loan data via new app

Effi has now released a Loan Tracker tool to its Enterprise broker users that enables them to access real-time product reference data of their client’s mortgage (if they have been granted consent to do so). This includes the current loan balance, interest rates, fees and charges, and eligibility criteria.

According to Effi, brokers can also get instant alerts on changes to the loan (enabling them to inform their clients in a timely manner) and can also predict how future interest rate changes might impact affordability.

The technology company said the app aims to eliminate the delay and hassle of requesting information from lenders or borrowers regarding their current home loan and helps prompt brokers to contact their client should anything change.

“In the current environment, with rising living costs and interest rates, mortgage brokers play a vital role assisting borrowers to navigate big decisions,” Mandeep Sodhi, founder and chief executive at Effi, said.

“Loan Tracker helps brokers to support borrowers to take the right steps at the right time, preventing costly mistakes and mortgage stress.”

Taner Uzelakcil, director of business development A/NZ at Envestnet | Yodlee added: “Increasingly, mortgage brokers are stepping into the role of trusted advisers rather than transaction agents and fintech apps powered by open banking technology are the perfect way to deliver that service at scale.”

Alongside the Loan Tracker tool, Effi has also rolled out a Savings Tracker app that helps mortgage brokers understand a borrower’s income and spending habits by accessing open banking data in real time. Together with the broker, the borrower can then establish a deposit savings goal and receive support to achieve it.

Specialist land and construction brokerage Loan Gallery has become the first brokerage to adopt and white label the two tracking tools, using them for clients who are customers of Metricon. For example, the financial tracker apps support savers to build up a deposit and help borrowers to manage their personal finances and navigate interest rates so they can own their home sooner.

“We are excited to partner with Effi to deliver the Savings Tracker under our own brand so mortgage brokers can nurture first-time home buyers with a personalised savings plan that will accelerate them onto the property ladder,” Steve Matsoukas, the director of the Melbourne-based brokerage said.

Calls for industry to adopt open banking faster

While brokers are currently able to access data shared by a consumer under the Consumer Data Right (CDR) through the ‘trusted adviser’ model, the roll-out of use cases has been limited in the broker space, with only one aggregator (Finsure) having made the technology available to its brokers and one major bank (CBA) having turned it on for brokers so far.

Given that the federal government is looking at whether it should regulate or ban screen scraping given the introduction of the CDR framework (which is believed to be a safer way for consumers to digitally share their data), the Mortgage & Finance Association of Australia (MFAA) recently called on lenders and aggregators to hasten broker access to open banking data.

Anja Pannek, chief executive of the MFAA, explained: “We’ve been in regular discussion with Treasury this year, highlighting how extensively the mortgage broking industry relies on products that leverage screen scraping technology, such as BankStatements.com and CashDeck, to meet responsible lending and other regulatory requirements.

“What’s clear is that the federal government would like reliance on this technology to end and regulation of these tools is coming. With that in mind, all of industry needs to accelerate use of CDR for trusted advisers, including mortgage brokers, to obtain access to their clients’ financial data.”

[Related: MFAA calls on industry to adopt CDR faster]