Mortgage approval in 15 minutes? Just downloading the paperwork and sending all the attachments takes a lot longer than that.
Intelligent Credit by Australian Mortgage now makes it possible to get approval in 15 minutes. Getting there took more than eight years — including two years of development with 7 IT developers, and Australian Mortgage’s team of over 17 industry experts to rebuild the mortgage application process and assessment from the beginning.
Along the way, the process got rid of paper — now the entire process, including signatures, can be done on a smartphone.
“The existing mortgage process with extensive amounts of paperwork, sometimes in excess of over 100 pages, and frequent last minute demands from brokers and credit assessors for more documentation, is out of touch with consumers’ demands. The time the process is now taking is almost prohibitive for consumers to act on buying and investment opportunities. Consumers want to shop and acquire loans on their mobile phones these days,” states Graham Andersen, Chief Executive of Australian Mortgage.
“We set a big goal: applicants should be able to get a verified approval for a mortgage while they are at an open house for the home they want to buy, or they should be able to get an approval for a refinance while on the bus to work.”
The Australian Mortgage team mapped the entire customer experience and challenged experts to critique the company’s plans by assessing and analysing each step in the progress toward approval. We then used lean processes and technology to make the entire process more productive and streamlined. Once we had mapped a draft process, we overlaid this with consumer feedback on what they wanted and were experiencing at each step of the process. The result is Intelligent Credit’s rapid verified approval.
In the current standard lending process, applicants have to supply bank statements that are manually assessed by credit managers, who then make their own individual and often inconsistent determinations of a customer’s ability to service a loan. The burden of proof on the customer is made more complex by the manual nature of the individual credit manager’s decisions in assessing the loan. Many iterations and interpretations by different credit managers can result in repeat requests for additional information. Furthermore, different credit managers individual bias can result in the lender having an inconsistent credit profile within their loan portfolios. This can be made even more complex when the lender is also required to meet external polices such as those of a lender’s mortgage insurance.
Intelligent credit imports all the customer information from available records and makes a consistent and objective analysis of the results. Intelligent credit is flexible in its weighting and analysis. On each application, credit managers review and adjust the Intelligent Credit system’s analysis; resulting in a productive, responsible and efficient risk process. This approach greatly reduces the cost to originate mortgages, giving Australian Mortgage a significant advantage over its competitors.
Australian Mortgage is planning to commence beta testing with its first pilot partners next month and is forecast to roll out a full version of the system to its distributors in the first half of 2020.
For media inquiries and interviews:
Director of Distribution
0411 722 277