Income and expense verification could be headed towards automation

Banks could soon be verifying potential borrowers’ incomes and expenses through a digital automated process.

According to Advantege Financial Services general manager Brett Halliwell living expenses are better off being processed digitally and several banks are already looking into implementing a system to do so.

Mr Halliwell says automating the process would allow brokers to focus more on their customers and the value-add side.

“Brokers, to my mind, really perform two distinct functions,” he told The Adviser.

“One is sourcing leads (and the customers who have the need to obtain finance) and working with that customer to establish their needs and recommend products that will suit them to make sure that they have the right product and right mortgage for their lending needs.”

“The second half of what a broker needs is really about fulfilment – filling out paperwork and doing the responsible lending steps, such as providing verification of different things that are being provided.”

Mr Halliwell said automation could handle some of this for brokers.

“I think that over time a lot of those steps could be automated and digitised,” he told The Adviser.

“For example, by obtaining direct access to customer bank accounts and ATO records and effectively examining and making enquiries to the customers’ existing banking arrangements.”

“A lot of that work can be done more efficiently and more effectively.”

Technology such as chatbots and machine learning have the potential to use customer data better and to escalate any roadblocks quickly.

“I think over time there will be an opportunity for brokers to be much more focussed on the value-add side, which is customer-needs-focussed, rather than back office paperwork.”

“While the latter is very important, it’s not necessarily done as efficiently as it could be.”


News & Resources