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NEWS TECHNOLOGY

AUSSIE HOME LOANS OFFERS DIGITAL LENDING

AUSSIE has partnered with fintech Tic:Toc to launch digital lending product Aussie Online. Aussie said it was the first to combine brokers, branded home loans and digital loans. “We have a track record of always choosing best-in-breed partnerships ... Tic:Toc are ahead of the market in this digital space, and by partnering with them we’ve been able to draw on their technology and insights for consumers who want to be self-directed in finding their home loan online,” said Aussie CEO James Symond.

MYLIFE MYFINANCE PIVOTS TO BROKER CHANNEL

AUSTRALIAN bank MyLife MyFinance (MLMF) will undergo a digital transformation in partnership with Temenos SaaS. MLMF, which was recently acquired by Challenger, will now be able to streamline customer onboarding and assist brokers in speeding up interactions with the bank. Genevabased Temenos specialises in digital transformation of banks. The project and sale to Challenger shows MLMF moving towards the broker channel.

“KOALA allows OnDeck to deliver more funding to a broader range of SMEs without taking on additional risk”

Cameron Poolman CEO, OnDeck Australia

Cameron Poolman, CEO, OnDeck Australia

ONDECK’S NEW CREDIT TECHNOLOGY HELPS SMALL BUSINESSES

A new-to-market technology feature known as KOALA has been introduced by small business non-bank lender OnDeck to revolutionise its approach to SME loans

FINTECH SME lender OnDeck has launched a new credit-scoring innovation that is set to totally reimagine the way it approves small business loans.

The Key Online Australian Lending Algorithm, or KOALA, will come into effect as part of the way that OnDeck approves SME credit, and is thought to be a unique offering in commercial lending.

It will use big data, predictive analytics and statistics, combined with data from credit reporting agencies such illion and Equifax to make intelligent loan decisions.

OnDeck says this will allow SMEs to apply for credit and have outside factors, such as their personal lending history and credit score, taken into account by KOALA. The lender is confident it will create a more rounded view of SMEs than traditional models.

The new system has already been trialled and resulted in an 11% rise in loan approvals without adding to risk, a number that is expected to rise to 20% by the end of the year.

“The capabilities of the KOALA Score™ give OnDeck Australia a distinct market advantage and improve our approval rate and average loan offers,” said OnDeck Australia CEO Cameron Poolman.

“Also, none of our loans have security due to the confidence we have in the model. This is unlike our competitors that will ask for security at different loan sizes.

“Moreover, KOALA allows OnDeck to deliver more funding to a broader range of SMEs without taking on additional risk.”

These include new businesses that do not have extensive trading data to draw on, as well as sole traders and partnerships.

HELPING CUSTOMERS SUCCEED WITH SPECIALIST LENDING SOLUTIONS

Pepper Money shares how brokers can help their customers who have experienced a life event by offering them a specialist solution

MEET JENNY. Jenny’s marital breakdown had led to financial difficulties and a history of defaults within the last 24 months.

She wanted to stay in the family home with the kids (aged 12 and 13), but this meant she had to buy her ex-husband’s share of their home.

She had no previous mortgage or rental history; however, her father had gifted the equity for the property when it was originally purchased, so her ex agreed to sell her the property at 80% of the current value.

Jenny had maintained a clean credit record during the past year and had a stable job as a manager at a bank. With her family support benefit and her work, she had sufficient income to comfortably afford her mortgage repayments. However, traditional lenders did not accept her child support and family tax benefit payments which were needed to service the loan.

She approached a broker for help, and after having her requirements assessed, it became clear that a range of specialist lenders could be offered to Jenny. After the broker presented her with some options, she chose to apply for a Pepper Money home loan.

Reading between the blips After reviewing Jenny’s situation, Pepper Money was able to offer her a Pepper Money specialist loan.

While she had experienced a real-life event that impacted her credit history, Jenny had turned her life around, held a steady job and maintained a clean credit record for over a year.

Pepper Money was willing to accept her family support benefit as income, even though her kids were above the age of 11. Jenny also had enough money coming in to comfortably afford the loan she was after (an 80% LVR loan on the property, which was valued at $480,000).

With her broker’s help and the funds from Pepper Money, Jenny and the kids were able to stay in the family home.

Real-life specialist solutions with Pepper Money In real life, a specialist home loan might be an option for your clients for a number of reasons: they may be recently self-employed, have a past bankruptcy, have nontraditional income, or be behind in bill repayments. However, these outcomes are just a part of their story – real life happening to everyday Australians who are capable of moving forward.

That’s why at Pepper Money we take a real-life view of their situation. We look at a wide range of factors when assessing a home loan application, and it’s a person who does the work. To help get a better understanding, a Pepper Money credit assessor will ask questions so they can have a more detailed and informed view before they start making decisions.

Common specialist solutions we can assist with include:

General purpose • LVRs up to 95% (up to $650,000) • Minimum 5% deposit for LVR greater than 90% • Loan amounts up to $2.5m (up to 65% LVR) • Cashout up to 85% LVR for personal or business purpose • Non-genuine savings

Income from various sources • Alternative income verification available within six months of ABN registration and six months of

GST registration • Child support income and government payments such as

Family Tax Benefit Part A and B

Missed repayments • Overdue or overdrawn credit cards/unsecured debts • One missed repayment on a mortgage facility

Adverse credit • Up to six months of non-mortgage arrears • Up to one month of mortgage arrears (within the last six months) • Unlimited defaults, judgments and writs >$1,000, listed >12 months (paid or unpaid) • Discharged bankruptcy (one day)

Debt consolidation • Consolidate unlimited number of debts • Pay out land tax debt and

ATO debt • Pay out private or solicitor debts

To find out more about Pepper Money’s specialist solutions, head to pepper.com.au/broker, or reach out to a Pepper Money BDM.