By:
George Srbinovski
Brokers love our 90 per cent no-LMI proposition and the way we handle PAYG applications. They love dealing with our BDMs, credit team and broker operations team, but they want to know why they can’t do more business with us.
That feedback has been consistent from day one. Brokers have been saying, ‘It’s great that you’re doing PAYG lending, but what about self-employed borrowers?’
When we started exploring that opportunity, we looked at how we could maintain the Ubank promise of a streamlined, low-documentation process. With PAYG borrowers, we can digitally retrieve income information, so we wanted to build on that approach. We decided to focus on sole traders because we believe it’s a segment we can serve extremely well.
Sole traders represent around 30 per cent of the market, so we saw a significant opportunity to serve this segment. When we launched as 86 400, we focused on PAYG borrowers, initially offering loans up to 80 per cent and then 85 per cent LVR with no LMI for eligible customers. We continued to build on that proposition, expanding to 90 per cent LVR with no LMI.
Our new sole trader proposition is a natural progression of that approach. As a lender, we want to identify areas where we can make a real difference and deliver a product exceptionally well. We believe sole traders are a segment we can serve effectively while building on the strengths of our existing offering.
“Sole traders represent around 30 per cent of the market, so we saw a significant opportunity to serve this segment.”
- George Srbinovski
“Sole traders represent around 30 per cent of the market, so we saw a significant opportunity to serve this segment.”
- George Srbinovski
Sole traders represent around 30 per cent of the market, so we saw a significant opportunity to serve this segment. When we launched as 86 400, we focused on PAYG borrowers, initially offering loans up to 80 per cent and then 85 per cent LVR with no LMI for eligible customers. We continued to build on that proposition, expanding to 90 per cent LVR with no LMI.
Our new sole trader proposition is a natural progression of that approach. As a lender, we want to identify areas where we can make a real difference and deliver a product exceptionally well. We believe sole traders are a segment we can serve effectively while building on the strengths of our existing offering.
We wanted to make the proposition as straightforward as possible for brokers to understand and use. That’s why we’ve focused on a clear set of criteria: a minimum of two years of ABN registration, one year of financials with a matching notice of assessment no older than 21 months from the reporting date, and a business that has been trading profitably for two years.
We’ve deliberately excluded more complex lending, such as complex trust structures and construction, because we want to focus on a segment we believe we can serve well. It’s about building on what we’ve already established at Ubank and giving brokers another option for their sole trader clients.
We’ve tried to make it as simple as possible. The borrower needs at least two years of ABN registration, with the business trading profitably for two years. We require one year of financials with a matching notice of assessment no older than 21 months from the reporting date.
The maximum LVR is 80 per cent for both owner-occupied and investment loans, with a maximum loan term of 30 years. It’s deliberately a straightforward proposition designed to give brokers more choice and Ubank a place in the sole trader lending market.
“It’s deliberately a straightforward proposition designed to give brokers more choice and Ubank a place in the sole trader lending market.”
- George Srbinovski
Speed has always been central to how we operate and develop our products. In today’s market, it’s still vital. Put yourself in the customer’s shoes: they’re already anxious about buying a property or refinancing, so they don’t want to wait three, four or five days for progress.
Getting the right documentation and ensuring good file quality are key to achieving a one-touch approval. When brokers submit a complete, well-prepared application, that’s gold.
Loanapp is central to our approach. We spent two years developing a bespoke version for Ubank, which will continue to underpin the application process for our self-employed proposition.
The focus is on getting applications from brokers to us as quickly as possible, with minimal friction. We use electronic identity and verification checks to identify issues before an application is lodged, while application data can be transferred from aggregator CRMs to reduce manual work. Documents are also signed electronically, removing the need for paper.
Technology helps streamline the process from application through to settlement, while our Australian-based call centre supports customers with setting up the app, connecting their accounts and arranging direct debits.
“The focus is on getting applications from brokers to us as quickly as possible, with minimal friction.”
- George Srbinovski
“The focus is on getting applications from brokers to us as quickly as possible, with minimal friction.”
- George Srbinovski
The focus is on getting applications from brokers to us as quickly as possible, with minimal friction. We use electronic identity and verification checks to identify issues before an application is lodged, while application data can be transferred from aggregator CRMs to reduce manual work. Documents are also signed electronically, removing the need for paper.
Technology helps streamline the process from application through to settlement, while our Australian-based call centre supports customers with setting up the app, connecting their accounts and arranging direct debits.
Broker feedback was a key driver. Over the years, our BDMs have consistently heard brokers asking us to expand beyond PAYG lending and do more for self-employed borrowers. That feedback has also come through in our broker surveys.
It was the natural next step for us as we looked to grow as a lender and expand our presence in the third-party channel. Brokers are at the forefront of everything we do.
Tune in to hear more!
You can listen to the full conversation with Ubank’s George Srbinovski, in the Broker Daily Spotlight podcast, here:
George Srbinovski
