Australian neobank Volt has acquired fintech lender Australian Mortgage to expedite the mortgage approval process as part of its banking as a service offer.
Under the deal, Volt will cut the processing time for mortgage applications from weeks to 15 minutes.
The product will be distributed through the Australian Finance Group (AFG), which acquired eight percent of the digital banking startup last month, starting with a pilot in Q4 2021 and a full commercial rollout to all 2,795 AFG brokers in early 2022.
Andrew Cluston, Chief Accountant and Partnerships Officer at Volt, says: “Many lenders are simply digitizing existing document-based processes and, as a result, the time to unconditional mortgage approval has not significantly improved.
“Australian Mortgage and Volt have instead redesigned the entire process and created a truly data-driven solution that offers real value to brokers. This allows them to focus on personalized customer service, highlighting the important role that mortgage brokers play in every Australian’s quest to become a homeowner.
“The addition of a lending component to our BaaS platform completes our transition from a fintech startup to a full-service applicant bank with a multi-channel revenue opportunity specifically designed to rapidly expand lending.”