Defence Bank has launched an automated lending platform aimed at slashing the time it takes from loan application to approval and funding.
Through a partnership with Cloudcase Software Solutions, the mutual bank implemented the digital platform across personal loan offerings as a pilot, providing loan approvals in as little as 30 seconds.
Defence Bank CEO David Marshall said the digital solution will soon be extended to home loans, credit cards and overdrafts, following positive customer feedback.
“Our pilot on personal loans revealed a completely paperless digital solution providing approvals within 30 seconds and funding within 20 minutes where members had all necessary documentation,” Mr Marshall said.
“[The pilot] has delivered a better member experience by reduced member effort through frictionless banking and increased personal lending fundings by 25% over the last three months.
“We will now extend it across our entire loan origination, with mortgages and credit cards set to roll out in the following months.”
Utilising the Cloudcase platform, Defence Bank notes members are informed through both text and email notifications from application to approval and funding.
Speaking to Savings.com.au late last year, Andrew Walker - co-founder and CEO of digital lender Nano - said the real home loan battleground is going to be being able to get a loan approved in 24 hours or less.
Nano claims it can process and approve mortgage applications in less than 10 minutes; new CommBank-backed digital lender Unloan also claims similar speedy timeframes.
For Defence Bank, transitioning this speed to home loans will place the mutual among some of the fastest loan approval times on the market.
Despite the name, Defence Bank does not require customers to be enrolled in the Australian Defence Force to access its services, with membership open to all Australians.
See more: Which lenders have fast home loan approval times?
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