Fintech launches home loan top-up service

Australian fintech Sandstone Technology has announced the launch of Loan+, a fully integrated, real-time, self-service, home loan top-up platform.

According to Sandstone Technology, Loan+, which is adapted to LIXI standards, is a stand-alone module that can be fully integrated into any loan origination platform.

The fintech added that the new platform leverages on the business’ existing digital acquisition expertise, including human psychology and online buying behaviours, while also adapting to changes in a bank’s credit policies, allowing users to make alterations with minimal involvement from third parties.

Sandstone noted that any proposed home loan top-up amount would be subject to the financial institution’s own credit policy, including loan-to-value ratios, property valuations and the applicant’s level of equity.

Following the announcement, Sandstone Technology’s general manager of digital acquisition, Raymond Yap, said: “After many years working closely with banks, non-bank lenders and aggregators in the financial sector, we’ve recognised a major pain point for our clients.

“With an economic landscape being conducive to growth in lending, many financial institutions have focused their attention on gaining new customers and market share in home loans.

“In the meantime, maintaining relatively manual and paper-intensive processes when it comes to home loan top-up facilities for existing customers continues throughout the industry.”

Mr Yap said the simplification of the top-up process would enable lenders to retain their customers.

“There’s no doubt that ineffective home loan top-up processes are currently contributing to customers considering their options to refinance resulting in unwanted attrition,” Mr Yap added.

“It’s fair to say that in many cases, customers have taken their business directly to a competitor, choosing to refinance rather than continue with what should be a simplified service.”

Mr Yap added that Loan+ seeks to balance the banks’ interests with the customer experience, which he said would provide a “significant benefit to both sides”.

[Related: BNK targets customers with complex finances]