Australia and New Zealand Banking Group (ANZ) is the last of the major banks to join the digital mortgage platform uno.
The third largest mortgage provider in Australia, ANZ has a 15.7 per cent market share in the residential home loan market. With the lender belatedly joining the uno platform, its customers are now provided with 93 per cent of lending options available in Australia.
“At ANZ we are embracing the digital disruption and the change that is taking place across the industry. We believe partnerships like this one offer great value for our customers, so we are very pleased to be working with uno home loans,” ANZ general manager of broker distribution Simone Tilley said
According to uno founder and CEO Vincent Turner (pictured), the ANZ deal took a year to finalise and was a recognition by the bank of the value of digitisation.
“It’s no secret that ANZ is making a push in digital banking. The deal with uno is consistent with the bank’s aim to provide more digital solutions to its customers,” he said.
Alternative distribution channels
The deal also acknowledged the growing role of digital mortgage providers as alternative distribution channels for lenders and Turner predicted that within five to 10 years, the majority of home loans will be sourced through digital mortgage platforms.
“Customers are increasingly demanding access to service beyond traditional business hours. They also want to transact digitally. Digital mortgage platforms will provide them with these services.”
At the same time, Turner acknowledged that people may need advice when selecting a mortgage and is not a self-service product. A view he highlighted earlier in February at RFi Group's Australian Mortgage Innovation Summit.
“Our business provides the opportunity to speak to and get advice on home loans," he said. Despite the financial backing of Westpac, Turner said the mix of loans in uno’s portfolio is evenly distributed.
“We are not constrained by our financial backer. Our loans are evenly distributed between the majors and non-bank lenders.”
Going forward, Turner told AB+F that the business is on track to double its growth in time for its financial year in October. “We are just focusing on doing better at what we are currently doing which is focusing on the costumer as well as increasing efficiency in the business.”
The business has advised on over $110 million home loans since it launched in May 2016.