Bendigo and Adelaide Bank-backed fintech Tic:Toc has announced the launch of its inaugural “software as a service” (SaaS) product, XAI Validate, which has reportedly been designed to simplify the home loan application process for lenders and brokers.
According to Tic:Toc, its new service seeks to address pain points associated with compliance relating to responsible lending obligations under the National Credit Act by enabling users to gain a deeper insight into a borrower’s income and expenses in a more timely manner.
“What it does, in a nutshell, is enable a customer to either have their financial position formulated through the use of the tool by a broker or used to validate a financial position by either a broker or a lender,” Tic:Toc co-founder and CEO Anthony Baum told Mortgage Business.
The SaaS product uses “Explainable Artificial Intelligence” (XAI) models to capture customer data and automate the underwriting processes, while also enabling users to interact, review and override decisions made by the algorithm.
The fintech claimed that its customer-facing home-lending businesses, which has already adopted the platform, has experienced an 85 per cent assessment efficiency improvement, providing customers with a loan contract less than an hour after submission and with just 12 minutes of human involvement.
“XAI Validate dramatically reduces the time and cost of delivering a home loan, which means customers can access cheaper home loans with faster turnaround times,” Mr Baum added.
According to the CEO, XAI Validate could also help improve credit quality, with the fintech head revealing that the platform does not have any loans that are more than 30 days in arrears in its $600-million portfolio.
“Our software will also help lenders minimise credit risk while maximising growth, enabling leaner and scalable operations,” he said.
Bendigo and Adelaide Bank signed a white-label agreement with Tic:Toc in 2019, becoming the first lender to offer Tic:Toc technology under its own brand.
Mr Baum revealed that Tic:Toc is currently in negotiations with interested parties looking to opt in to the platform, with the fintech to make an announcement “relatively soon” regarding a major reseller agreement with a “large industry player”.
[Related: CBA-owned fintech launches home-buying app]