The next step: mortgage platforms
Inefficiencies within the Australian mortgage market could see the integrated platform model that has been so successful in the local wealth management industry be introduced by lenders.
A white paper produced by FujitsuAustraliaandNew Zealand in association with RP Data Valuation & Risk Services highlighted existing inefficiencies in cost levels, application turnaround times and product innovation and showed that there were many opportunities available to early adopters of a mortgage platform.
The report, titled the Next Generation Mortgage Platform, said mortgage platforms were able to set lending policies, specify lending processes, provide faster and less expensive valuation products and automate the management of the mortgage life cycle.
The report suggests that the mortgage industry draw on the experiences of the wealth management industry in setting up platforms, which has resulted in “greater access to more investment products and a reduction in manual labour, freeing advisers to focus on providing better investment advice to clients”.
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An adviser has received a written reprimand from the Financial Services and Credit Panel after failing to meet his CPD requirements, the panel’s first action since June.
AMP has reported a 61 per cent rise in inflows to its platform, with net cash flow passing $1 billion for the quarter, but superannuation fell back into outflows.
Those large AFSLs are among the groups experiencing the most adviser growth, indicating they are ready to expand following a period of transition and stabilisation after the Hayne royal commission.
The industry can expect to see more partnerships in the retirement income space in the future, enabling firms to progress their innovation, according to a panel.
