Life admin technology platform One Click Group Limited (ASX:1CG) has confirmed the Q1 FY23 trial of its first step into the mortgage brokering market, via the offering of its ‘Loan Pack’, has been successful, with 235 customers purchasing the Loan Pack product.
The Loan Pack is designed for customers wanting to procure finance, providing the customer with all of their ATO tax information that will be required by any financial institution prior to providing finance to a customer.
The product speeds up the information gathering process for customers requiring finance. The company launched the trial in anticipation of the large use of its online tax product prior to July 1, 2022 with no external marketing costs, making the product available only to its registered user base.
The trail was to validate that there was sufficient demand for the service ensuring sound commercial grounds for progressing the build of the One Click Mortgages product within the One Click Life platform.
Managing Director Mark Waller said that following the success of this first-phase product trial, the company will now move into commencing the build of its digital mortgage brokering offering, utilising data to assist customers and financial institutions to both simplify and speed up the process of applying for a mortgage.
According to the Mortgage & Finance Association of Australia, mortgage brokers facilitated 69.5% of all new residential mortgages in Australia in the March 2022 quarter, a total of $88.1b of mortgage debt.
The company expects to launch the One Click Mortgages product in the coming quarter. Once the product is built, the Company will make an initial upfront fee from facilitating a mortgage and then an ongoing trail commission thereafter. The revenue opportunity for the company could therefore be quite lucrative as it already has over 60,000 registered users that One Click Mortgages can be marketed to.
The One Click Mortgages product will build on the company’s ability to digitise financial services. Using data, the product will aim to streamline and simplify the mortgage application process in a digitised format.
Our customers are used to using our products on an anytime, anywhere basis. Almost all of our customers use our products on their mobile phone. Our ability to use a customer’s data to tailor and simplify an experience in a mobile first format allows for the simplified buying experience demanded by consumers,” Mr Waller said.
“Entering the mortgage brokering market provides the Company the opportunity to tap into a large market opportunity while providing a simple experience for our customers. We have proven a demand for finance from our user base with our Loan Pack service offering, and we are excited by the ability to convert this demand into brokering the finance for our customers.”