Bendigo and Adelaide Bank has moved to enhance its processes and policies in 2023 ahead of the launch and rollout of a new loan origination platform for the third-party broking channel.
In February, it increased its maximum loan size for locations like Sydney and Melbourne, changed its cash out policy, and revisited its approach to statements and declared living expense validations.
This followed the reintroduction of closed bridging loans for new customers before Christmas.
Bendigo and Adelaide Bank general manager third party banking Darren Kasehagen (pictured above) said the changes and enhancements had been well received so far by the broking channel.
“We are proud of our enhanced ability to service more customers and to deliver a product offering that better matches current market dynamics,” Kasehagen said.
The adjustments also come ahead of the new platform rollout for loan originations through brokers.
“We are very much focused on our plans to roll out a new loan origination platform in Q4 2023 with a progressive rollout to all aggregators by the end of FY24,” Kasehagen said.
“Brokers will experience a faster time to decision, as the origination process will be more automated, with significantly lower ‘touch times’ on files. Customers will experience all the bells and whistles of the Bendigo Bank platform, including multiple offset accounts and much improved internet banking and mobile banking app functionality, which includes Osko/PayID.”
The bank can now offer loans up to $7.5 million in Sydney and Melbourne and $6 million in other category 1 locations, depending on LVR, which is an increase on a previous $5 million ceiling.
For cash outs, the bank now only requires submission commentary on purpose rather than a verification point like a quote, where the cash out is less than $500,000 and less than 80% LVR.
Declared living expense (DLE) validations will now apply principles of scalability, where in most cases the bank will apply a ‘reasonable’ test to customer-provided DLE and adjust where necessary. In applications where there are some indicators of concern or of generally higher risk, the bank will continue to complete detailed analysis over expenditure, which may require the likes of statements.
Bendigo and Adelaide Bank has also reduced the number of times that it will need statements through the process.
“In the conversations we’ve had so far, busy brokers appreciate the ease of use and broadening of our product and policy offering,” Kasehagen said.
“Adelaide Bank listens carefully to the direct feedback we receive from brokers. The changes that we implement allow us to be a more efficient and responsive lender when processing loans and ultimately, to serve more customers”.
Bendigo and Adelaide Bank recently reported a 22.9% jump in cash earnings to $294.7 million for the half year ending December 31, and a 14.5% increase in total income to $958.2 million on the prior half. The bank’s statutory net profit was up 49.3% to $249 million, driven in part by a revaluation of the Homesafe portfolio, restructuring charges, and amortisation of acquired intangibles.
The Bendigo Bank brand was also recently recognised as Australia’s most trusted bank for the fourth consecutive quarter by research house Roy Morgan.
