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Smart banks are disrupting the way Australians transact and save. The rise of digital home loans means mortgage brokers can offer their clients a quicker turn around time and almost no paperwork. But is this too good to be true?

I can't think of one thing we can't do on our smartphones. We can order food, shop, bank, measure our heat rate, track how many steps we have done, measure distance and hight, listen to music, watch Netflix, we even date through our phones... So shouldn't the same be said for home loans? 

In a time where we have to rely on the digital world more than ever (courtesy of COVID19) many brokers and lenders have had to readjust and start delivering a digital mortgage experience in order to continue to service their clients with minimal disruption. Whilst the major banks were far behind and had to hit the ground running to bring their systems up to speed, Fintechs such as 86 400 have already been harnessing and taking advantage of technology to speed up the home-loan process. 

86 400 was the first bank in Australia to offer digital home loans.  A bank located entirely within your smartphone fit for today's world.

“Smart tech is everywhere: smartphones, smart cars and even smart homes. They exist to make our lives easier and more convenient. But when it comes to managing our finances, these same benefits haven’t been available to us until now. Designed for smartphones, our smart bank will help people take control of their money, offering far more than they’d expect from a bank,” chair of 86 400, Anthony Thomson said.

Hand holding smartphone with hand drawn media icons and symbols concept

86 400 launched in September 2019, offering first ever digital home loans later that year. 86 400 chose the broker channel to launch their home loan proposition as they believe brokers are best placed to assist customers with their home loan needs. This means, in order to get your home loan through 86 400, you must go through a broker. “We’re launching through brokers because we think it’s the most efficient way to get to as many Australians as possible. That’s why we built the system to solve their pain points as well,” CEO, Anthony Bell said.

As purchasing a home is one of the biggest financial decisions you will make in your life, it is good to have the support of a broker on your side, the human interaction aspect of the home loan process will always be invaluable. 

Since launching Australia’s first and only digital home loan product for brokers in November 2019, brokers have been quick to take advantage of 86 400’s digital solution. The 86 400 Own home loan can deliver a yes or no decision in as little as 2 hours, enables digital verification of identity, digital collection of expense and income information and all documents are signed electronically. 

Happy young couple meeting with a broker in her office leaning over the desk to shake hands, view from behind the female agent

Whilst it has been an adjustment, lenders and brokers have been able to adapt quickly to this challenge by embracing the digital tools that have been made available to them. For example, NetGen a newly launched  Document Verification Service (DVS) in ApplyOnline which allows brokers to immediately compare a customers identifying information with records from 22 government bases. The service provides electronic validation of government issued documents such as birth certificates, drivers licences, citizenships, Medicare and passport information. Other tools abatable such as e-signature tools like DocuSign are also assisting brokers and lenders with a  smooth digital transaction.  

In a changing world that is needing to be essentially contactless, digital banks are enabling home buyers to continue to purchase, existing home owners to get a better deal, and mortgage brokers to continue to remain open and run their businesses. Sounds like a win, win to me! 

ISM offers a large range of training visit our courses page or call 1300 200 705 to find out more. 

Tags: #training, #workplace, #leadership, #investment, #broker, #Customer Owned Banking, #commerciallending

Annabel Sullivan

Annabel started with ISM in early 2020 and has hit the ground running. Annabel works on ISM's marketing and social media and building relationships with our amazing clients.