Lender Signals Digital Shift with Broker-Centric Platform and Niche Lending

AMP has signaled a strategic reinvigoration of its banking division, primarily focused on transforming its engagement with the mortgage broking industry, which now accounts for a significant majority of home loan settlements.

The shift, detailed in a recent interview with Travis Hall and Melissa Christy from the institution, centers on a significant investment in a new digital platform and a sharp focus on specialised lending niches to drive future growth.

Mr. Hall, highlighting the bank's renewed commitment, noted that with over 90% of its volume flowing through the third-party channel, the bank's strategy is to "support the mortgage breaking industry" by addressing historical inconsistencies in pricing and service.

Technology Driven by Broker Input

At the core of the transformation is a new digital submission platform, championed by Ms. Christy. The platform aims to resolve common pain points for brokers by verifying key credit data—including income and expenses—upfront and running decisioning rules early in the process.

"The key to our proposition is that we will validate and verify income expenses and run our decisioning rules upfront so the broker will understand where they're at even before it gets submitted," said Ms. Christie.

The institution reports massive initial broker uptake, resulting in one of its highest application months on record following the platform’s launch. While Ms. Christie admitted to "teething issues" due to unexpected volume, she stressed the platform's flexible architecture is designed for rapid adjustment. Crucially, the platform’s design process involved fortnightly collaboration with a forum of brokers to ensure it created genuine efficiencies and reduced rework.

Focus on Speed and Niche Policy

Beyond the initial application process, the lender is targeting market-leading speed in the post-approval phase. The bank plans to roll out "90-second docs," aiming to issue loan documentation almost instantaneously following unconditional approval. Mr. Hall suggests this will force brokers to "pivot in the way they operate" and communicate expectations to customers upfront regarding the speed of documentation.

From a policy standpoint, the bank is carving out distinct niches for specific customer segments:

1. Self-Employed Clients: The policy allows lending based on just 12 months of tax returns for personal and company financials, a move aimed at streamlining assessment for business owners.
2. Flexible Facilities: The introduction of a Master Limit product targets pre-retirees and retirees, offering a flexible, line-of-credit style solution to help manage cash flow and provide ongoing funding flexibility.
3. Extended Interest-Only Terms: A 10-year interest-only product has been introduced, notably without the requirement for a further assessment at the five-year mark, providing stability and cash flow relief for a full decade.

Mr. Hall summarised the strategy as a clear objective to support the substantial number of Australians reaching retirement age who still carry a mortgage, aiming to "free up their cash flow" during their peak financial years.

The bank is positioning itself as a more nimble player, capable of rapid changes and updates to its platform to move quickly with marke