NAB has announced faster conditional home loan approval processes. The new feature is understood to be the most comprehensive online conditional home loan approval currently available in Australia. It takes, on average, around 15 minutes to complete, with some customer information pre-populated into the form, saving customers time and effort.
As part of the application, customers are asked about their financial position, including their employment, income, assets, and expenses. As with all conditional home loan approvals, NAB will need to verify the customer’s financial position and the security being purchased, and check that the loan is suitable for the customer. Eligibility criteria for using the application also apply.
The National Australia Bank has recently conducted a technology overhaul which it says will dramatically reduce loan processing times and turn a greater number of customer enquiries into sales, reports The Age.
The platform, which has been rolled out in NSW and Victoria in recent months, is used by staff to open new bank accounts, loans and credit cards.
Bob Melrose, executive general manager of retail, told The Age that once the system was installed in NAB’s South Australian branches last year, the number of enquiries that resulted in the customer taking out a loan increased by 20%.
“I always think about that as more satisfied customers, and obviously there’s some flow-on benefits for us in terms of revenue as well,” he said.
While the total number of enquiries that transformed into sales was previously less than half in South Australia, this was no longer the case, Melrose said. He expected a similar increase in NSW, Victoria and Queensland.
“We’re starting to see encouraging signs in those states at the moment, and we will continue to see those benefits grow over this year and next year as well. There can only be upside now for each of the states.”
The changes will lead to fewer staff processing loans, Melrose said. The time taken to approve a loan is a key factor in whether customers shop around for a better deal, he added.
“The worst thing that can happen is if the customer is waiting too long, they get itchy feet and they start to pick up the phone and talk to others.”
While NAB previously took two or three weeks to approve a home loan, the new system meant that more than a quarter of the bank’s home loans were now approved within one and a half days.
“The new platform has digitalised the application experience for our customers and bankers, including a faster time to ‘yes’ and less manual processing for bankers,” a NAB spokesperson told Australian Broker.
“Customers are experiencing a simplified single application process for multiple products and online upload and acceptance of loan documents and a digital 100 point ID check. NAB customers also now receive regular updates on application status via internet banking and SMS.”
Here is NAB’s announcement.
NAB has today officially launched a new, simpler, easier, more convenient way for customers to gain conditional approval for a home loan.
NAB goAHEAD enables NAB customers to apply for conditional approval for a new home loan online 24/7, and receive an instant response.
“We’re saving our customers time and stress, and helping them make an offer on a property with confidence,” NAB General Manager of Home Lending, Meg Bonighton, said.
The new feature is understood to be the most comprehensive online conditional home loan approval currently available in Australia. It takes, on average, around 15 minutes to complete, with some customer information pre-populated into the form, saving customers time and effort.
“Until now, Australians have only been able to receive a rough guide on what they can borrow via online forms. What we’re giving customers through NAB goAHEAD is true conditional approval – just like they would receive if they spoke directly with a NAB banker,” Ms Bonighton said.
“With NAB goAHEAD, customers can complete the application, receive conditional approval, and make an offer on a property the very same day with confidence that they’re backed by NAB.”
As part of the application, customers are asked about their financial position, including their employment, income, assets, and expenses. As with all conditional home loan approvals, NAB will need to verify the customer’s financial position and the security being purchased, and check that the loan is suitable for the customer. Eligibility criteria for using the application also apply.
NAB goAHEAD was developed by NAB’s innovation hub, NAB Labs, which focuses on creative ways to design new products and services for customers.
“NAB wants to create a seamless online experience for our customers, and helping them to conveniently apply for a home loan anywhere and anytime, is key to this,” Ms Bonighton said.
“We’ve also built live chat functionality into NAB goAHEAD so that we can support customers through this process if they need any assistance.”
NAB goAHEAD is enabled through NAB Internet Banking and NAB’s Personal Banking Origination Platform. The new platform was rolled out across the organisation this year to better integrate systems and information so that customers receive the same experience and advice about products and services whether they call NAB, visit a NAB branch, or visit NAB’s website.“Customers who complete this application online will be able to continue their conversation seamlessly with a NAB banker in a branch or in our contact centre,” Ms Bonighton said.
NAB’s Personal Banking Origination Platform also allows customers to upload, receive, and accept loan documents online, and receive Internet Banking and SMS updates on their application progress.
“This is a significant step forward in our move to fully digitise the home lending experience so that customers can more conveniently, simply and easily make their home ownership dreams a reality,” Ms Bonighton said.
