A South Australian fintech firm given a $900,000 govt grant says its ‘world-first’ online home loan brings the approval process down from 22 days to 22 minutes.
Although South Australia has been in the news for its expensive renewable energy problems and battery-based solutions, inviting both praise and ridicule from various parts of the media, news of a claimed ‘world-first’ online home loan in the world of fintech has emerged.
It appears to be some fresh and impressive fintech thinking that saw the Investment Attraction South Australia (IASA) organisation decide to deliver a $900,000 grant to “Tic:Toc Home Loans”, the SA fintech firm behind the online home loan miracle.
Now, it’s important to note that Tic:Toc has apparently nothing to do with Kei$ha, nor brushing your teeth with “Jack” - an activity which cause consternation with your dentist, and which might alarm your traditional bank manager.
Instead, the SA Government’s partnering with Tic:Toc and the Bendigo Adelaide Bank not only brings online home loan benefits, but also the promise of “200 new jobs and investment in banking to South Australia.”
So, what are the details behind the announcement?
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Well, we’re told that Tic:Toc has announced the launch of “the world’s first complete online home loan platform, creating new jobs in SA including relocations from Perth and Sydney to Adelaide to radically expand its 14-person Adelaide office.”
This comes with the promise of “home loan approval in just 22 minutes, instead of 22 days.”
With the support of the Bendigo and Adelaide Bank, Tic:Toc and IASA say “this new fintech venture will take online banking to a new level,” allowing “radically improved turnaround times from the typical 22 days to just 22 minutes,” as well as passing on the “cost savings of digitisation to the customer via competitive interest rates and no application, settlement or valuation fees.”
Going so far as to label the development a disruption to the “home finance landscape on a world stage” through the redefinition of “the way customers secure home finance,” Tic:Toc clearly believes it is onto a genuine winner for itself, its customers, its banking partner and the state of South Australia.
Of course, one immediately wonders how long it might take before other home loan companies and banks might whip up online home loan options of their own, but Tic:Toc has presumably thought of this long ago, while presumably wanting to take full advantage of its “first mover” status.
With its headquarters in the Adelaide’s North Terrace, the company expects to “create up to 200 full-time positions over the next five years”, with the Bendigo and Adelaide Bank “underwriting the loans and supporting the application’s development.”
SA Minister for Investment and Trade Martin Hamilton-Smith noted that when the project was put to him in November last year he could see it was a great opportunity to grow the financial services sector in Adelaide.
Hamilton-Smith said: “The firm’s foundation management team has worked all over the world including London, Hong Kong and interstate, however half it’s members originate from and were educated in Adelaide.
“This is 200 new jobs coming to Adelaide in the fintech sector backed by Bendigo Adelaide Bank.
“Management and operational jobs will be created both at Tic:Toc and Bendigo Adelaide’s offices and the investment will result in a $209 million contribution to GSP by 2025-26, achieving gross impact on GSP of $758 million over 10 years in 2015-16 values.
“This is another win for Investment Attraction South Australia which has already attracted more than $1 billion in investment and created almost 6000 jobs.”
Tic:Toc founder and CEO, Anthony Baum, said the beauty of being a digital business is we can base ourselves anywhere in Australia, and deliver the same great service to all our Australian customers.
Baum proudly boomed: “Fintech is a major growth sector, both internationally and within Australia. As a proud South Australian, I find it satisfying to launch and grow a major national fintech company from Adelaide.
“The Australian market was ready for a fully digital home loan. Australia has one of the highest take up rates of online banking in the world. The on-demand economy has shifted customer expectations when it comes to personal finance, but home loans have been left behind.
“We believe customers deserve a faster, easier and more transparent way to get a home loan; and Tic:Toc can deliver on this promise.
“Other ‘online’ home loan providers digitise only part of the process, so while their application may begin online, it ends in the exact same way every other traditional home loan process does,” Baum concluded.
Here’s Tic:Toc’s corporate video: