Financial life admin technology company One Click Group Limited (ASX:1CG) has noted acceleration in interest and activity for the company’s One Click Mortgage product.
Since launch in March and first sale announced in early May 2023, the company now has 10 mortgage sales that are settled, unconditional or conditional and expects the revenue momentum to continue given the positive user engagement acceleration in applications.
In the month of May, the company received 34 mortgage applications, following the completion of its domestic expansion of the product, which is demonstrating strong early traction in the infancy of the product launch.
One Click Mortgages operates as a mortgage broker and is paid an upfront fee of approximately 0.60% of the amount being financed and a trail commission of approximately 0.15% per annum. The exact amount depends on the financial institution providing the finance. According to Rate City, the average home loan in Australia is over $600,000. Based on this data, the One Click Mortgages product could achieve an average upfront commission of over $3000 for each sale, along with an ongoing trail commission of approximately $800 per annum.
The revenue opportunity from One Click Mortgages significantly increases the lifetime value of a customer, as another service to complement the suite of financial and life admin products available on the One Click Life platform.
Whilst not all submitted mortgage applications will be successful, the company is monitoring the rate of conversion from application to completed mortgage and expects to have an understanding of the average rates of successful mortgage applications from the user base in the coming six months.
To achieve more than one mortgage application per day from our user base on only the third month of having the product live is an amazing achievement,” Managing Director, Mark Waller, said.
“It is a testament to the quality of the product we have built and engagement of our user base. The mortgage application rate per day has increased again into June, as more customers access the platform to get ready for the coming tax lodgement period.
“Taking complicated financial problems or situations away from individuals and distilling them into simple to use products that provide our users value has enabled us to grow a user base of over 70,000 users.
“This user base is continuing to grow at a rapid rate and there are a lot more opportunities where we can help people in managing their financial lives.
“We will continue to grow user numbers on the One Click Life platform whilst we monetise the products we have live and expand the platform’s capabilities, continuously increasing revenue opportunities within our user base.”
One Click Life has over 70,000 registered users on its platform and growing. The average age of a One Click Life customer is 31, which provides opportunity to provide multiple financial solutions within that age demographic. The xompany intends to market new products to its existing user base, providing a low cost of marketing for new products.