Since July 2019, when it was awarded a full banking licence by APRA, it has grown rapidly. With currently more than 225,000 accounts on its platform and $300 million in customer deposits, it is Australia’s only neobank to offer home loans and remains the only digital mortgage for brokers.
Digital neobank, 86 400, has its sights set on becoming a genuine alternative to the big four banks by delivering all the capabilities of a bank on a consumers’ phone. Since July 2019, when it was awarded a full banking licence by APRA, it has grown rapidly. With currently more than 225,000 accounts on its platform and $300 million in customer deposits, it is Australia’s only neobank to offer home loans and remains the only digital mortgage for brokers.
86 400’s aim is to drive genuine change in the Australian banking industry. They plan to differentiate themselves by leveraging mobile technology in order to reinvent and personalise the customer banking experience.As a start-up, unencumbered by legacy systems and processes, 86 400 needed help developing their digital offerings – specifically to transform the manual process of loan origination into a fully automated digital process.
Through a competitive tender, they chose Loanworks to create a solution that would do just that In early 2021, after operating for less than two years, 86 400 was taken over by National Australia Bank (NAB), and merged into its Ubank subsidiary.
86 400 required a cost-effective loan origination solution capable of supporting their streamlined straight through decisioning process and seamless integration with key service providers within the loan origination value chain. 86 400 needed to partner with a systems integrator able to align platform to their business model, have experience of the Australian mortgage industry and a deep understanding of the loans origination lifecycle.
The program scope for 86 400’s loan origination solution spanned the entire software lifecycle of design, build, implement and run, including project managing the solutions roll-out.
86 400 had a vision of their straight through decisioning process and customer value proposition but needed to validate it against real-world experience. 86 400 stakeholders required all key partners to assist 86 400 in designing the final solution landscape.
86 400 required the loan origination solution provider to align customer experience, system processes and application behaviour to support its desired straight through automated loan process, business rules and credit policies.
86 400 required a system integrator to design and document the scope of each integration point with key service providers. 86 400 required a system integrator to engage with individual service providers the project manage, build, test and implement each integration point within the solution landscape.”
They are really easy to work with, their response times are great and the system has been very flexible to cater for our customised solution.
In late 2017, when first engaged by 86 400, Loanworks had an existing ‘out of the box’ loan origination platform, which was already integrated with the majority of 86 400’s core third party service providers. The platform however needed to be tailored to meet their specific needs.
We kicked off the engagement with a series of workshops to identify 86 400’s critical issues, priorities and objectives. Armed with a clear understanding of their business, the project’s potential risks and opportunities, and the company’s ultimate goal, we devised a detailed solution, incorporating 86 400’s explicit requirements.
Our solution involved integrating the Loanworks origination systems with additional value-adding third parties.Loanworks’ platform also assigned tasks and generated the necessary documents to support the origination process. To execute the above integrations, we used a variety of coding technologies, including ASP.NET, Web services, SQL server, AJAX, XML and JSON.Over the course of eight months, the Loanworks team worked with 86 400 to deliver stage one of the project.
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Launched in beta at the end of 2018, 86 400 went live in late 2019, with its intuitive mobile banking app. They use technology, data and machine learning to deliver personalised service, based on what their customers value the most in real time.
Loanworks was tasked to develop, and subsequently delivered, a cloud-based, end-to-end, straight through processing digital loans origination platform, fully integrated with third party providers, which incorporates everything from lead capture, credit assessment and credit decisioning, right through to mortgage document preparation and settlement.
By automating the entire origination workflow from start to finish, headcount costs are contained, error rates limited, and loan processing speeds and productivity increased. Subsequent savings can be reinvested to fulfil 86 400’s goal of building a bank that is truly technology led. Loanworks is continuing its work with 86 400 and exploring additional options to add further value to their systems and processes.
Since July 2019, when it was awarded a full banking licence by APRA, it has grown rapidly. With currently more than 225,000 accounts on its platform and $300 million in customer deposits, it is Australia’s only neobank to offer home loans and remains the only digital mortgage for brokers.
For Mortgage Choice Group, employing local admin support had proved too costly and time-consuming In fact, far from allowing them to focus on their core skills, it had merely created another level of admin for them, further constraining their ability to grow. It was a catch-22 and they came to Loanworks for a solution.
HomeStart taps Loanworks for home loan origination tech.
Loanworks was selected by the South Australian government backed home loan lender, HomeStart, as its preferred technology vendor.