RedZed - July 2022

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This is the headline of to Better Serve Digitalisation theSelf-Employed feature the DIGITAL REPORT 2021

DIGITAL REPORT 2022

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Digitalisation to Enhance the Self-Employed Experience 2

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RedZed’s Paul Dontschuk discusses the history of RedZed and its digital transformation to enhance the customer experience of the self-employed market in Australia

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“RedZed offers a personal approach to its services, taking the time to understand the specific needs and wants of its customers” PAUL DONTSCHUK

CHIEF TRANSFORMATION OFFICER, REDZED

ith over 30 years of experience in the financial services industry, Paul Dontschuk, Chief Transformation Officer at RedZed has worked across multiple geographies with a common theme: technology, change and working with great people. As Chief Transformation Officer at RedZed, Dontschuk is accountable for the delivery of the company’s transformation programme.

Over the years, Dontschuk has seen enormous change when it comes to technology being used to support both customers and internal process efficiencies.

“I've been lucky enough to work for some iconic organisations during my career, such as Ford and General Electric. During that time I have been involved in many innovative projects implementing real-time application systems in the late 80s, early-adopting banking customer service functionality over the web in the 90s, integrating the first in market apply and buy credit card solutions with iconic Australian retailers in the naughties and one of the first contactless mobile payment capabilities in Australia in the early 2010s. My experience has provided me with a great set of tools and expertise that I am able to apply at RedZed.” Formed in 2006, RedZed began as a small business focusing on the self-employed market. “RedZed has provided mortgage finance of over AU$6bn to more than redzed.com

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“ Whilst focused on appropriate actions to navigate RedZed through a period of uncertainty, management and the board saw the opportunity to continue to support investment in the future” PAUL DONTSCHUK

HIEF TRANSFORMATION OFFICER, C REDZED

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14,500 customers since its inception. In 2006, there were fewer than five employees and, over the company's first few years, it started to use third parties rather than it started to use small tech providers and third parties whilst building internal capabilities” prior to help grow the business,” explains Dontschuk when discussing the company’s history.

“This approach was sufficient for RedZed to grow the business to around AU$3bn in total historical assets. In 2019, RedZed identified a new strategy” to be able to accelerate growth. The three pillars of this strategy were to improve and expand the view of customer experience (CX), build capability in people and processes, and deliver technology transformation as an enabler for future growth to support those CX ambitions,” he adds.

Reflecting on his own history with RedZed, Dontschuk says: “I joined RedZed a week before COVID lockdowns commenced in Australia (March 2020). During 2020, many organisations took a conservative approach

REDZED

Our Values

PAUL DONTSCHUK TITLE: C HIEF TRANSFORMATION OFFICER INDUSTRY: FINANCIAL SERVICES LOCATION: VICTORIA, AUSTRALIA

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EXECUTIVE BIO

to investment and slowed or stopped projects. Whilst focused on appropriate actions to navigate RedZed through a period of uncertainty, management and the board saw the opportunity to continue to support investment in the future.

“This included maintaining staff levels and in some cases hiring new areas of expertise that have enabled RedZed to grow. In addition, there was a commitment to using this period of uncertainty to continue delivery of the transformation roadmap. RedZed has continued to grow significantly through the period with record finance volumes achieved in the financial year 2021 and 2022.

Over 30 years of experience delivering significant change via technology, process improvement and people. Strong execution background gained in Financial Services across five continents.

Signature strength is aligning customer requirements and business strategy with IT Strategy and subsequent successful execution at scale. Teams of up to 500 with $60M pa project portfolios.

Led successful major IT integration & divestment activities from M&A to implementation stages. Utilised expertise and experience to help build multi-billion dollar businesses.

Passionate about the possibilities that technology and change enable.

Inspired by developing teams that deliver outstanding results and are motivated and excited by the potential of change and technology.

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REDZED AND ITS PARTNERS In the last two years, RedZed has established multiple relationships across key areas of expertise to support its transformation journey, these key relationships have been with: SAP, Attra, Maven Change, nCino, PwC, Illion.

“RedZed will continue to optimise the number of technology partners it deals with and take a cloud-first approach. We need to focus these relationships to match the size of our organisation whilst ensuring that technology scales as we grow.”

“RedZed is an organisation of just over 120 people and to optimise scale relies on a number of key partnerships to deliver

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certain services. Therefore the use of partners has been integral to ensure we deliver on the promise of our passion for the self-employed.”

“Like any partnership, communication and trust are key. These elements align nicely with the RedZed value to Respect Relationships. In a practical sense, this means ensuring the relationship includes a regular operating rhythm with agreed measures established at multiple levels within each organisation. Most important is the ability to have frank and open conversations about what is working well and what needs to be improved.“

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“RedZed’s main difference with traditional banks is our focus to ensure we take a common-sense approach to self-employed lending that is simple, fast and fair. By being easy to do business with our selfemployed customers can simply get on with achieving their ambitions,” says Dontschuk.

Understanding the Operating Market Currently, Australia builds around 180,000 new homes each year. In 2019, there were roughly 10.3 million homes in the Australian market worth a collective AU$6.6tn. “The median home cost in Australia is AU$955,000 with average loan taken around AU$730,000. The total Australian residential mortgage market was worth AU$2.1trn AU in 2019,” explains Dontschuk.

“Australian housing prices continue to grow each year with the median house price increasing by around AU$103,000 in 2021. RedZed’s largest market is in the state of Victoria and the majority of loans are from the east coast states.”

With this in mind, RedZed was founded by a team of people with experience in what it is like to be self-employed and is driven to find a better way to serve this market.

“ RedZed’s main difference with traditional banks is our focus to ensure we take a common-sense approach to self-employed lending that is simple, fast and fair” PAUL DONTSCHUK

CHIEF TRANSFORMATION OFFICER, REDZED redzed.com

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“ Australia builds around 180,000 new homes each year” PAUL DONTSCHUK

CHIEF TRANSFORMATION OFFICER, REDZED

REDZED AND ITS DIGITAL TRANSFORMATION JOURNEY Creating a Core and Central Data Architecture In 2019, RedZed invested in the development of a core and central data architecture known as CoreDB. “CoreDB has been built to support data and reporting.

The basis of this design was to create a central source of truth for data underpinned by a common data design,” says Dontschuk.

support team to focus on the needs of customers rather than the technology that supports a servicing system. “The vision being that the interface our customer support team uses becomes agnostic of the technology to deliver the information that best serves the customer needs,” adds Dontschuk.

In mid-2020, RedZed implemented the Loanapp platform enabling its brokers to capture loan applications online.

Historically, RedZed’s brokers have been largely paper-based, but with the increase in demand for online submissions, the provision of alternate channels was vital.

In late 2020, RedZed became the first in the world to implement the SAP C4B platform. “This was an enormous undertaking for an organisation of RedZed’s size,” says Dontschuk. “However, underpinned by our values of Pride In Execution and Bold Exploration, RedZed successfully partnered with SAP to deliver

The Implementation of Salesforce, Loanapp, and SAP C4B In early 2020, RedZed implemented Salesforce for its customer services team.

This allows the customer redzed.com

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“Transformation should begin with alignment to an organisation's purpose and vision. At RedZed that meant delivering solutions that support our passion for the self-employed” PAUL DONTSCHUK

CHIEF TRANSFORMATION OFFICER, REDZED

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We're for the Self-Believers - RedZed TVC 60"

this transformation. The project involved setting up the Cloud for Banking platform for new loans and the migration of over 3,500 loans from the existing legacy platform to the SAP C4B platform.”

Implementing a New Loan Application Origination Platform In late 2021, RedZed implemented a new

loan application origination platform, scorecard, and decision engine with rollout of the platform taking place in early 2022. RedZed’s previous loan application process involved numerous manual handoffs.

“In the 1st half of 2022 RedZed rolled out the new originations, scorecard, and decision engine platforms. The nCino solution is built on the Salesforce platform,” explains Dontschuk.

“By automating the interfacing of data in the application process, improving upstream validation of data and ensuring data is acquired from common sources the solution will deliver benefits to data quality, traceability and consistency.

Importantly it will allow RedZed staff as we scale to concentrate their time on finding the best solutions for our customers in a timely manner whilst continuing to ensure a human is involved in each loan decision,” he adds.

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