Home News Westpac-backed start-up to help banks assess loan applications

Westpac-backed start-up to help banks assess loan applications

Font size :

Banks in Australia will soon have automated loan assessment processes, thanks to software developed by start-up Basiq

Banks in Australia will soon have automated loan assessment processes, thanks to software developed by start-up Basiq.

Supported by Westpac and the National Bank of Australia, Basiq aims to help banks assess applications using actual customer spending rather than relying on customer-given estimates and indexes.

Basiq founder Damir Cuca told The Australian Financial Review that while most banks still employ manual processes to check estimates provided by customers, they will soon start utilizing actual data to fulfil their duties to tighten lending amid the increased scrutiny of the Royal Commission.

"While everyone is talking about it or looking into it, Regional Australia Bank has already done it. This is the future and it will be the way banks will assess all applications going forward," he said.

Regional Australia Bank chief risk officer Campbell Nicoll said asking borrowers to estimate their spending is not enough to properly assess financial capabilities.

In essence, Basiq's software uses actual transaction data and categorizes them into 80 attributes based on Australian Bureau of Statistics expense classifications.

"People have just been guessing their expenses. But Basiq plugs into our bank, extracts two years of transaction data, categorises it – and that and gives us the true picture on expenses," he told AFR.

Nicoll said the software will be able to flag riskier customers, providing banks with an opportunity to thoroughly do a financial check on their prospective clients.

"Having more information allows you to make better decisions, have better conversations, and this will lead to better consumer outcomes. History is a great predictor of the future in banking," he said.

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

Australia sees deepest cut in new lending since 2010 Australia sees deepest cut in new lending since 2010

Weakness is not confined with investor loans anymore as owner-occupier loans start to dip Read more

Expect the housing downturn to persist, analyst warns Expect the housing downturn to persist, analyst warns The dwelling oversupply and tight lending rules will continue to influence the market ... Read more

Home-loan demand rebounds Home-loan demand rebounds The Australian Bureau of Statistics reports an upswing in the number of home loans approved in October ... Read more

Housing market sheds over $70bn in value Housing market sheds over $70bn in value Blame the market cooldown in Sydney and Melbourne ... Read more

More mortgage news and articles

Sponsored Links

Thursday, Dec 13, 2018
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords