CBA May Launch Digital Mortgage Product

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The CBA suggested that it could move into the financial technology arena by offering a digital mortgage that would be approved in just ten minutes.

Angus Sullivan, chief executive of the CBA’s retail banking division, told media on Friday that the Big Four bank is considering digital home lending, citing it as the next growing market for banking technology.

“We will be looking to get mortgages between 10 and 20 minutes, and this will be a tremendous opportunity for more Australians to take advantage of high rate fixing through easier refinancing,” Sullivan said.

They will initially target their simplest customers on a low-risk basis, with lower LVRs and less than $ 3 million in mortgages.

This puts Commonwealth Bank in the same category as Athena Home Loans, 86,400 and Nano, which pioneered digital mortgages in Australia.

Nano has made great strides in its game in this space, issuing $ 100 million in home loans in just a month since launch.

Speaking to an Australian broker last week, Nano CEO Andrew Walker said that it was the big banks like CBA that would lose the most from the rise in digital home loans, as the brokerage channel had a well-established reputation for customer support to protect it. from the appearance of the third channel on the market.

“In my opinion, it is clear that the brokerage channel will continue to be the locomotive of the Australian mortgage market,” he said. “The brokers’ channel and their level of customer focus make this inevitable.”

“However, some of the flow to the digital mortgage channel comes from both brokers and affiliates, although I suspect affiliates and the initial establishment of incumbents will be more affected than brokers. This is simply because the broker’s channel offers a higher level of service. “

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