CBA BANKS ON A HI-TECH FUTURE
COMMONWEALTH Bank has unveiled a new digital homeloan platform called Unloan, which will process applications in 10 minutes and target the refinancing market while offering a loyalty discount.
Unloan was part of a series of initiatives announced by chief executive Matt Comyn on Tuesday, including the share-trading platform CommSec becoming available in the CommBank app and the launch of Kit – a money app and digital information tool to help kids manage their earnings, saving and spending.
Despite recent carnage in the crypto market, Mr Comyn also said CBA would restart a pilot program for customers to buy, sell and hold up to 10 cryptocurrencies in the bank’s app.
“I dare say it will be an issue for the incoming government about how to most appropriately regulate the sector, and we want to play a leading role in shaping the most appropriate regulatory outcome,” Mr Comyn said.
Unloan, incorporating a single low-cost interest rate of 2.14 per cent (for owner occupiers) and 2.44 per cent (for investors), targets customers looking to refinance their properties up to a value of $3m and up to 80 per cent of the property’s value.
It will be the bank’s lowest-cost home-lending platform, enabling CBA to reinvest the savings in a customer loyalty discount that grows by 0.01 per cent a year, up to 0.3 per cent over 30 years.
“We’ve reimagined what a home loan can look like,” Mr Comyn said. CBA retail boss Angus Sullivan said the quality of a customer’s data would determine whether their loan could be approved and in 10 minutes. “Open banking (the ability to share banking data with accredited third parties) will be a really important part of getting to ‘approved’,” Mr Sullivan said.
CBA shares closed 1.7 per cent, or $1.79 higher, at $105.12 on Tuesday.