We’re excited to share a significant milestone for Open Banking in Australia: Our parent company, NextGen, announced that the Commonwealth Bank of Australia (CBA) has become one of the first lenders to enable Open Banking for mortgage brokers in NextGen’s loan lodgement platform ApplyOnline. The partnership is set to redefine the home loan application experience for brokers, lenders, and customers alike. And we’re proud to say that our Open Banking platform is part of the solution that enables this.
This is the step change the industry has been looking for and CBA’s decision underscores its commitment to leadership in technology and customer-centricity.Tony Carn (Chief Customer Officer, NextGen)
One of the most pressing issues facing the home loan application process in Australia today is that fewer than 15 percent of all applications are approved without the need for additional information post-submission. This results in an average 14-day waiting period for unconditional approval across the industry, causing frustration, incurring staff costs, and creating operational inefficiencies for the 85 percent of applications that require extra information.
Open Banking offers an innovative solution, cutting down application reworks and significantly reducing customer wait times. Customers can now easily share their financial information with their mortgage broker through a secure and government-regulated channel, eliminating the need for insecure password sharing.
Tony Carn, NextGen’s Chief Customer Officer, said the integration was significant: “CBA’s use of Open Banking in ApplyOnline marks a transformative leap forward for the mortgage broking industry in Australia. This is the step change the industry has been looking for and CBA’s decision underscores its commitment to leadership in technology and customer-centricity.”
Michael Baumann, CBA’s Executive General Manager Home Buying, said Open Banking would benefit both brokers and their customers: “Through adopting Open Banking for mortgage brokers via ApplyOnline we hope to be able to create a more seamless home loan application experience for our customers and to equip brokers with the tools they need to best support their customers in reaching their homeownership goals.”
NextGen leverages government-regulated data sources to ensure the highest quality application data. Additionally, it streamlines the application process because ApplyOnline auto-populates customer data and generates tailored bank statements, significantly enhancing efficiency.
Tony Carn added: “Open Banking data expedites approval processes, reducing reworks and enabling smoother processing. It also enhances security by minimising fraud risk while preserving the integrity, authenticity and provenance of customer data.”
As an ACCC-accredited data recipient (ADR) under the Consumer Data Right (CDR), NextGen’s Open Banking solutions provide a secure, transparent means of collecting customer financial information, safeguarding Australians’ data and assets in an evolving threat landscape. This enriched data and deeper insights into a customer’s financial position elevate the quality of loan applications, delivering a superior home loan application experience for brokers, lenders, and customers alike.