ABC’s New Digital Mortgage Will Be Offered Direct
The big bank has confirmed that its new digital home loan product, Unloan, will be “focused on digital direct distribution to begin with.”
The Commonwealth Bank of Australia (CBA) has confirmed that its soon to be launched digital home loan Unloan (part of its expansion entity x15ventures) will primarily be launched directly through digital channels.
The upcoming digital direct-to-consumer mortgage offer called Unloan, backed by x15, was first reported last month and is expected to launch “at the end of the year”.
Asked by Mortgage Business about the new product and its distribution, CBA’s head of retail banking, Angus Sullivan, has confirmed that it will be launched as a product aimed directly at consumers.
He said: “This shift to digitalization and the incredible change we are seeing in the way customers interact with us is part of the opportunity for Unloan.
“At the heart of what we’re trying to achieve with it is radically new technology and processing infrastructure that allows us to approve a client for a home loan in an incredibly quick turnaround; by targeting that 10 minute space.
“And, if you want to put great value in the hands of the customer, having low cost distribution is extremely important. One of the huge advantages of a digital model is that it is a low cost distribution channel, and that means you can put great value in the hands of the customer and you can also create great direct digital experiences with the customer.
“So we’re going to focus on digital direct distribution to start with. It will have some connectivity all the way to CommBank, but we’re very, very excited about what’s being built in this space.”
New strategic partnership announced
The news comes after the ABC aannounced that x15 has entered into a new strategic partnership to expand its “end-to-end digital home buying solution”.
He has announced a new strategic partnership with an Australian property management company:Differentbecause it takes a minority stake in the company.
As part of the strategic partnership, CBA and:Different will collaborate on exclusive offers and benefits to reach homeowners across the country.
It will be made available to customers via the CommBank app later this calendar year, and is currently studying “the experience[ing] with other distribution channels in the x15 “portfolio such as having references / presentations via Home-In and a loan.
Founded by former Silicon Valley leaders Mina Radhakrishnan and Ruwin Perera in 2017, :Different portrays himself as a ‘property management disruptor’ who provides management services (such as streamline the process of reporting, quoting and managing maintenance requests) via an app for real estate investors / owners and connects them to a team of real estate partners. It currently serves properties on the east coast of Australia.
The tech provider also raised $ 25 million in a Series B funding round (led by CBA and venture capitalists Antler) as it aims to grow nationwide and build its team of property managers and its technological platform.
The partnership comes as the big bank looks to provide more digital solutions to the home buying process, including digital mortgages.
Unveiling the new partnership, Mr Sullivan said: “As the country’s biggest supporter of bringing Australians into homes, we aim to be and be the most trusted partner in the life of our customers. for them in the moments that matter.
“Today’s announcement of our partnership with such a disruptive company differentiates and further expands what we are able to offer our mortgage investor clients.”
He added that this partnership was part of the CBA’s decision to “heal [select] a high-profile, high-growth technology company and presenting them exclusively to ABC customers to provide an enhanced level of service. “
“We see this partnership as an important part of our overall home buying strategy and one that will be at the heart of how we help our clients manage their homes and develop their wealth ”.
Toby Norton-Smith, Managing Director of x15ventures, who joins the board of directors of :Different, noted that the partnership and investment are based on the group’s home buying solutions.
“[T]he real estate industry is clearly a space where we believe we can develop the next generation of high quality digital services for homebuyers, real estate investors and property managers, ”said Norton-Smith.
“We have significantly expanded the ABC home buying ecosystem with Credit advised, home and now :Different, as good as Unloan, a new type of home loan to come.
“Given the important role ABC plays in the lives of so many Australians, we want to continue to invest and build businesses that deepen this relationship.
“Using :DifferentThe platform for connecting our retail and small business customers means we will be able to deliver significant value to tenants and investors. Co-founders of :Different, Mina Radhakrishnan and Ruwin Perera, are industry disruptors and we are delighted to help them accelerate their vision, ”he said.
Mrs. Radhakrishnan said: “We have started :Different take care of homes and the people who live in them. Our mission is to be the ubiquitous home assistant, and partnering with CBA takes us one step closer to that goal.
“We’re both aligned on the importance of delivering exceptional experiences and value to our customers, and this partnership means that together we will help millions of Australians access an end-to-end digital home buying solution. at the end.
[Related: Loan deferrals tapering at CBA]
Annie Kane is the editor-in-chief of The Adviser and Mortgage Business.
In addition to writing about the Australian brokerage industry, mortgage market, financial regulation, fintechs and the broader lending landscape – Annie is also the host of Elite Broker and In Focus podcasts and The Adviser Live webcasts. .