Finsure has become the first Australian mortgage aggregator to turn on Open Banking access for its mortgage brokers, thanks to a new partnership with Frollo and NextGen.

Open Banking provider Frollo and lending technology provider NextGen have worked with Finsure to give brokers access to an Open Banking powered Financial Passport, which collects customer data for use in their loan application process.

The solution is completely integrated into the broker workflow through NextGen’s ApplyOnline.

The new partnership is not only an Australian first for the broker space but also represents a significant step forward for Open Banking use cases and the property space at large, with the technology to significantly reduce the time brokers spend on reconciliation and processing mortgage applications.

Finsure’s brokers will be the first to use the new Trusted Advisor model under the Consumer Data Right (CDR).

With over 2,500 brokers nationally, this launch shows in further detail the potential of the Trusted Advisor model to bring real productivity improvements and efficiency to the mortgage application process.

Everybody Wins

While the new solution is a great step forward for brokers — with The Financial Passport providing Finsure brokers with a complete financial picture of their clients using bank-verified data — the partnership with Frollo and NextGen also has benefits for borrowers.

Using Open Banking data has the benefits of being more secure and providing better privacy protection than traditional alternatives.

Brokers can now access the Financial Passport in the existing broker workflow as part of NextGen’s ApplyOnline platform, and as a result, the mortgage application process will be significantly streamlined for all parties.

“Open Banking solves the problem of data inconsistency and provides transparency across the entire applicant lifecycle,” Finsure CEO Simon Bednar said.

“It allows Finsure to build into our CRM platform comprehensive data insight models, which will help brokers make more informed decisions.

“It also allows all parties in the transaction to rely on the same data set, greatly reducing rework and facilitating earlier decisions in the home loan process. By consuming Open Banking data, we can provide unique insights into customer behaviour, assisting brokers in making the right decisions.”

Frollo CEO Tony Thrassis added that the Trusted Advisor model might be the CDR access model with the most potential to drive Open Banking adoption in Australia.

“So, we’re excited to be the first to integrate this new CDR model into a significant and meaningful customer journey for one of Australia’s largest mortgage broker groups,” he said.

NextGen Chief Customer Officer Tony Carn said the company saw the opportunity to streamline the mortgage application process with Open Banking data when NextGen acquired Frollo two years ago.

“Since then, we have worked closely with the Frollo team to build a solution that helps brokers and lenders save time and deliver more value to their customers,” he said.

“Today we’re launching the Open Banking powered Financial Passport, with Finsure as our initial launch partner. As a leading mortgage aggregator and a true innovator, they bring the scale and expertise to make this a success.

“In the new year, all mortgage brokers will have access to this solution when using NextGen’s ApplyOnline software. So as lenders start to accept open banking data, we are very excited about the opportunities ahead.”

This article was developed in collaboration with Frollo, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.