Investments in digital technology are pushing the mutual bank to approve loans faster than it takes to cook noodles in two minutes.
Defense Bank has launched an automated lending platform aimed at drastically reducing the time from loan application to approval and funding.
Through a partnership with Cloudcase Software Solutions, the mutual bank implemented the digital platform in personal loan offerings as a pilot project, providing loan approvals in as little as 30 seconds.
Defense Bank CEO David Marshall said the digital solution will soon be extended to home loans, credit cards and overdrafts, following positive customer feedback.
“Our personal loan pilot project revealed a completely paperless digital solution providing 30-second approvals and 20-minute funding where members had all the necessary paperwork,” Marshall said.
“[The pilot] Delivered a better member experience by reducing member effort through frictionless banking and increasing personal loan funding by 25% over the past three months.
“We will now be rolling it out across our entire loan origination, with mortgages and credit cards set to roll out in the coming months.”
Using the Cloudcase platform, Defense Bank members are notified via SMS and email notifications from application to approval and funding.
Speaking to Savings.com.au late last year, Andrew Walker – co-founder and CEO of digital lender Nano – said the real battleground for home loans would be being able to get a loan approved in 24 hours or less.
Nano claims it can process and approve mortgage applications in less than 10 minutes; New CommBank-backed digital lender Unloan also claims similar fast turnaround times.
For Defense Bank, the transition from this speed to home loans will put the mutual among the fastest loan approval times in the market.
Despite its name, Defense Bank does not require its customers to be enrolled in the Australian Defense Force to access its services, membership being open to all Australians.
See more: Which lenders have fast home loan approval times?
Are you buying a house or looking to refinance? The table below shows home loans with some of the lowest interest rates on the market for homeowners.
Basic criteria: a loan amount of $400,000, variable, fixed, principal and interest (P&I) real estate loans with an LVR (loan-to-value) ratio of at least 80%. However, the “Compare mortgages” table allows calculations to be made on the variables selected and entered by the user. Certain products will be marked as promoted, featured or sponsored and may appear prominently in tables regardless of their attributes. All products will list the LVR with the product and price list which is clearly published on the product supplier’s website. Monthly repayments, once the basic criteria are modified by the user, will be based on the advertised prices of the selected products and determined by the loan amount, the repayment type, the loan term and the LVR as entered by the user. user/you. *The comparison rate is based on a loan of $150,000 over 25 years. Please note: this comparison rate is only true for this example and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different comparison rate. Rates correct as of September 16, 2022. See disclaimer.
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The whole market has not been taken into account in the selection of the above products. Instead, a reduced portion of the market was considered. Products from some vendors may not be available in all states. To be considered, the product and price must be clearly published on the product supplier’s website. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au and Performance Drive are part of the Savings Media group. In the interest of full disclosure, Savings Media Group is associated with Firstmac Group. To learn how Savings Media Group handles potential conflicts of interest, as well as how we are paid, please visit the website links at the bottom of this page.