Home-lending business to play second fiddle: Tic:Toc
The fintech has shed light on its long-term strategy in the mortgage market following the launch of its new enterprise business.
Last week, fintech lender Tic:Toc Home Loans announced the launch of its inaugural “software as a service” (SaaS) product, XAI Validate, which has reportedly been designed to simplify the home loan application process for lenders and brokers.
According to Tic:Toc, its new service seeks to address pain points associated with compliance relating to responsible lending obligations under the National Credit Act by enabling users to gain a deeper insight into a borrower’s income and expenses in a more timely manner.
The fintech claimed that its customer-facing home-lending businesses, which has already adopted the platform, has experienced an 85 per cent assessment efficiency improvement while also maintaining credit quality, with the fintech revealing that the platform does not have any loans more than 30 days in arrears in its $600-million portfolio.
Speaking to Mortgage Business, Tic:Toc CEO and co-founder Anthony Baum was asked why the fintech has opted to share its processing capabilities with competitors.
In response, Mr Baum said the rollout of its SaaS platform was part of a broader strategy to leverage its customer-facing business to build and develop an enterprise business.
“At the end of the day, what we’re finding is that some of the best fintech companies in the world [discover] a better product, build the technology, use that business to refine that technology and achieve really good customer outcomes,” he said.
“[Fintechs] then realise that it’s very costly to build brands in financial services, it takes time, it’s a highly competitive market.
“The best business model is to take that know-how and make it available to the industry.”
Mr Baum said Tic:Toc is capable of expanding its home-lending business but would instead invest resources into the development of its lending solutions service.
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