According to Nano Digital Home Loans (Nano), this offering – coined “Nano Lending Solutions” – is a lending origination platform that utilises an algorithm to entirely automate the loan application and decision-making process.
Intended to be used by lenders, including “large non-banks”, Nano has said this tool will allow its users to provide customers with “faster loan approvals” and a “step change in customer experience”.
Speaking of the launch, Nano co-founder and chief executive Andrew Walker said that the new battleground in lending is “time to yes”.
“Rapid, seamless and near instantaneous decisioning is moving from being a differentiator, to a baseline capability,” Mr Walker said.
“Approvals in minutes, not days or even weeks, will quickly become the expectation of both customers and brokers.”
Mr Walker added that because of Nano Lending Solution’s algorithm, Nano is able to “unconditionally approve loans without any manual intervention, creating the world’s fastest time to yes”.
Last week (14 June), the digital lender flagged its intentions to enter the software-as-a-service space at a conference regarding the launch of its direct-to-consumer mortgage product.
According to Nano, this direct-to-consumer offering is completely digital and allows approved borrowers to receive up to $2.5 million.
Speaking at the time, Mr Walker said that, due to lenders relying on technology developed during the 1980s, any attempt to improve efficiency or processing will inevitably hit a ceiling.
“You can’t get any further because you’re caught by the technology in the approach to the past. And the stress and the anxiety – It’s all born and worn by the customer.
“Customers want more. They can do everything online and COVID-19 has exacerbated that digital trend,” Mr Walker added.
“And it’s quite clear now that speed is the battleground.”
Nano eyes off global evolution
Coupling the launch of Nano Lending Solutions, the fintech also revealed its intentions to utilise this B2B product with lenders beyond Australia.
Speaking of the company’s future ambition, Mr Walker said that the issues facing Australian lenders are also experienced across the world.
“If you look at the United Kingdom, Canada or the US, the problems with the lending industry are the same as in Australia,” Mr Walker said.
“Old traditional banks have a significant market share and power. Consumers are fed up with their archaic, confusing, slow processes. Some have improved incrementally, but true innovation in lending origination is still lacking.”
Mr Walker added that inbound inquiries from players in these markets have ultimately accelerated Nano’s initial plans for international expansion.
“Our technology platform will speed up loan approvals for the whole financial system and create the next generation of market leaders, leaving those who only compete with low rates, vulnerable during this inflationary market,” he said.
[Related: Nano expands digital loan offering]