An aggregator introduced an option for brokers to have their loans processed in-house, which includes fraud prevention processes.
Finsure Group has integrated new measures and support processes into its loan processing center, including a fraud protection service.
BNK Banking Corp’s aggregation division said its brokers will have the option of having their loans processed through an in-house broker support service, which includes a fraud prevention specialist.
The support measure was implemented to help the broker network deal with any threats from “increasingly sophisticated” fraud schemes, Finsure said.
According to Finsure Group Managing Director Simon Bednar, when a broker’s loan application is processed by the Aggregator’s Broker Support team, the Fraud Prevention Specialist will assess and verify the authenticity of details, documents and any other supporting documents of loan applicants. subject to fraudulent activity.
He added that the specialist would help verify the client identification documents provided with the application as well as the job details of the loan seeker, as well as pay stubs, bank statements and all other relevant supporting documents. for the loan, he said.
Commenting on the supports and inclusion, Mr Bednar said fraud systems have become increasingly complex and pose a growing threat to the mortgage industry following the recent tightening of compliance requirements in the industry as well as the introduction of new technologies.
“Two of Australia’s largest banks have been ordered to pay fines and remedies of more than $ 2 billion for violations of the anti-money laundering framework (AML),” said Mr Bednar.
“To address this issue, Finsure’s fraud prevention process uses both anti-money laundering sanction testing and Politically Exposed Persons (PEP) screening to help mitigate these risks for the lender and broker. “
He continued, “As your loan application is processed by the Broker Support team, a fraud prevention specialist will assess and verify the authenticity of the details, documents and any other supporting documentation making the claim. ‘subject of fraudulent activity. “
Mr Bednar explained that the process was designed to mitigate some of the risks brokers face when receiving inquiries from referrers and consumers, including undisclosed liabilities, undisclosed dependents, forged income documents. and incorrect employment status.
“Finsure’s fraud prevention experts use a range of technology and industry standard procedures to ensure the security of broker accreditation,” he said.
“In addition to independent employment verification through telephone employment verifications, our fraud prevention process team uses a document verification service to confirm the authenticity of identification documents provided to the employee. ‘application support which has the ability to integrate facial recognition and identity theft.
“Barcode documents are scanned and compared to vendor records to ensure that all possible steps are taken to ensure that Finsure brokers are protected against dishonest borrowers and forged documents. “
Finsure of settlements up 35% year-on-year
BNK Group released a business update for the third quarter of 2021 (3QFY21), in which it reported that Finsure’s loan settlements totaled $ 5.0 billion, an increase of 34.8% from year after year, the group reported.
The group said locations were down 5.2% quarter-on-quarter.
Finsure – which has 1,960 brokers in its network – reported that its total loan portfolio increased 20.4 percent year-on-year and 4.1 percent quarter-on-quarter to $ 52.2 billion in 3TFY21.
The aggregator’s 3QFY21 deposits electronically submitted (through its gateway excluding deposits submitted manually or directly to lenders by Finsure brokers) totaled $ 14.1 billion at 3QFY21. This represents growth of 9.7% quarter over quarter and 55.9% year over year.
BNK Group’s total loan portfolio was $ 54.6 billion at 3TQFY21, up 19.1% year-on-year and 4.0% quarter-over-quarter .
BNK Group’s non-bank arm’s loan portfolio (which includes Better Choice Home Loans) was broadly flat quarter-over-quarter at around $ 2.4 billion in 3QFY21, but was down 3.9 % year-on-year.
Loan settlements for fiscal year 3QFY21 increased 26.7% year-on-year and 57.2% quarter-on-quarter to $ 158.2 million.
BNK Bank’s loan portfolio grew 37.9 percent year-on-year and 28.5 percent quarter-on-quarter to $ 393.5 billion, while settlements increased nearly 210.0 percent in year on year and 203.1% quarter on quarter. for a total of $ 108.1 million.
Deposits increased 22.4% quarter-on-quarter to $ 479.1 million in 3QFY21, an increase of 41.2% year-on-year.
Commenting on Finsure’s results, CEO John Kolenda said, “Finsure started the year as it ended 2020, continuing to grow. Loan deposits during the quarter increased 31.0% year-on-year and 6.0% quarter-on-quarter, which is a positive forward-looking indicator for the company.
Brett Morgan, CEO of BNK Group, also spoke about BNK Group performance:
“Of particular note is the growth of our higher margin BNK funded loan portfolio, which grew by 29.5% in the quarter. “
[Related: Finsure reports new settlement record]
Malavika Santhebennur is the Mortgage Securities Editor at Momentum Media.
Prior to joining the team in 2019, Malavika held positions at Money Management and Benchmark Media. She has been writing about financial services for six years.