iSelect trials three-hour digital home loan

ASX-listed iSelect is trialling a new digital home loan process that lets home buyers get conditional approval for a home loan in three hours from multiple lenders, without needing to visit a bank or fill out paperwork.

The technology is the first in Australia that digitises the home loan application process and can present offers from multiple lenders, however many of the banks offer a digital service for their own loans.

Macquarie Bank, ING and Australian Finance Group are trialling iSelect’s new service, but the business has plans to do a full rollout in 2017.

The new service is part of iSelect’s transition to become a “life admin” business, and chief executive Scott Wilson said it was developed in response to the arduous process of getting a conditional approval.

“We’ve had more than 200,000 people come and talk to us about home loans, but one of the frustrating things has been that is is an antiquated process and there would be up to 46 pages of documents [needed for conditional approval] that had to be sent out and signed … we were seeing up to seven signatures on the documents,” he said.

“Now we can get you conditional approval in three hours, but previously it could take 10 to 15 days.”

To make this process digital, iSelect is using technologies such as DocuSign, so documents can be signed electronically, and credit check business Veda.

Despite still being in a trial phase, a third of home loans are now going through this digital process.

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Source: iSelect trials three-hour digital home loan | afr.com