Defence Bank takes brokers out of equation with new digital mortgage platform

Defence Bank home loan roll out platform

Defence Bank, the dedicated mutual bank servicing Australian Defence Force (ADF) members, has announced the deployment of its digital loans processing platform for mortgage origination and experience

The rollout effectively extends the original Cloudcase-developed platform – deployed by the bank in late 2022 for personal loans processing – to home lending.

Since the implementation of its personal loans processing system, Defence Bank has registered an 18 per cent increase in car and personal loans funding for its members.

The fully digital personal loans system boasts, at its quickest, conditional approval times of within 30 seconds and, with all relevant documentation, funding approvals within 20 minutes.

The Cloudcase platform supports direct API-enabled integrations with Defence Bank’s key banking systems and vendors, including its core banking provider, lenders mortgage insurer and valuers.

After successful deployment in personal and home lending, Defence Bank said it also plans to extend the Cloudcase platform for credit cards and overdrafts processing.

Defence Bank reports a nine per cent year-on-year increase in lending and “successive record funding months” (notably between November and December 2023) after building its dedicated, customer-facing digital lending channels and, it said, avoiding the use of brokers.

“As a modern Bank that understands the unique life the men and women of the ADF lead, it was important to ensure we could deliver a fast and convenient lending experience for our ADF Members,” Defence Bank acting chief executive Marnie Fletcher said.

“We therefore took considerable time to recognise and incorporate into the platform the specific pay and entitlements members of the ADF are eligible to receive.”

“Our members have also commented on the convenience and access offered by the new platform which allows them to complete the application digitally in their own time with regular updates by email or SMS notifications across from application to approval and funding.

Cloudcase, an Australian fintech developer, is a popular choice among tier-two and tier-three Australian banks, including Bank Australia, BankFirst, Regional Australia Bank and Gateway Bank.

Defence Bank said the rollout of the Cloudcase lending platform is part of the business’s “whole lending ecosystem revamp” – which extends beyond technology to “processes, procedures, and capabilities of the bank”.

“The focus on continuous improvement in the lending experience coupled with strategic investments in digital is beginning to pay dividends for Defence Bank,” Fletcher said.

“The bank continues to grow its home lending without the use of brokers,” she added.

Last financial year the bank broke its own lending record, advancing a combined $806 million in new funding, surpassing its previous record of $696 million. Its current loan book stands at $2.92 billion.

The bank boasts more than 78,000 members and assets of $3.5 billion.