MogoPlus collaborates to develop industry first Open Banking lending solution

Revolutionising Lending: Launching Australia’s First CDR-Powered Loan Serviceability Solution

Wednesday 13th March 2024.

In the ever-evolving landscape of financial technology and challenging regulations, innovation is key to staying ahead. Enter Adatree’s latest groundbreaking product: the Loan Serviceability Solution (LSS). This collaborative effort between Adatree, MogoPlus, and Central Murray Credit Union (CMCU) marks a significant milestone in revolutionising the lending experience for both financial institutions and their customers.

The collaborative effort between Adatree, MogoPlus, and CMCU underscores the power of partnerships in driving innovation. Adatree, known for its expertise in Open Banking infrastructure, partnered with MogoPlus, a provider of advanced loan assessment solutions, to address the unique challenges faced by CMCU, a small credit union in Victoria. CMCU sought a cost-effective digital lending solution to enhance member experiences without expanding its workforce, and the LSS was the answer.

Benefits to the end customer

The introduction of the LSS brings a plethora of benefits to CMCU’s members, enhancing their overall satisfaction with the lending process. Members can now experience a seamless digital journey, eliminating the need for manual paperwork and significantly reducing processing time for loan approvals. The solution also improves accessibility, enhances security, and streamlines loan processing, providing a competitive advantage for CMCU in the market.

Mike Page, MogoPlus CEO commented “This is a groundbreaking advancement in the Australian Open Banking ecosystem. It brings together two best in class CDR innovators with an important regional institution. The LSS represents the new wave of the Consumer Data Right progress where use cases are finally coming to life to provide more efficient solutions through a combination of consented data access and intelligent decisioning insights. We’re proud to be part of this exciting initiative that will enable better outcomes for both CMCU and its Members”.

Jill Berry, Adatree’s co-founder and CEO, shares her perspective on the solution, stating, “The use case of the Loan Serviceability Solution brings significant operational efficiencies, serving as a cornerstone example of leveraging the  Consumer Data Right for innovation and operational efficiencies in the financial sector.”

Australia's first Credit Union to leverage Open Banking

Sally Eales, Operations Manager at CMCU, praised the solution, stating,The Loan Serviceability Solution is really easy to use and allows our team to be much more efficient. We are really happy to recommend this solution as an easy step into the digital world. Thank you Adatree and MogoPlus for helping make the Member loan application process hassle-free!”

This partnership represents a significant innovation in leveraging Open Banking data and advanced loan assessment technologies. By collaborating with fintech leaders like Adatree and MogoPlus, CMCU demonstrates a proactive approach to embracing new technologies and enhancing operational efficiency. Moreover, the partnership sets a precedent for broader adoption of CDR data, driving cultural change and catalysing innovation in the Australian financial services industry.

Implications for the Fintech industry

The launch of the LSS not only showcases Australia’s leadership in fintech innovation but also has broader implications for the global fintech landscape. It proves that with the right partners, innovative solutions can be implemented quickly and cost-effectively, even for institutions with minimal resources. Furthermore, it demonstrates the transformative potential of collaborative efforts between traditional financial institutions and fintech startups, paving the way for the widespread adoption of Open Banking principles worldwide.

The launch of the Loan Serviceability Solution represents a paradigm shift in the lending landscape, driven by collaboration, innovation, and a commitment to enhancing customer experiences. As CMCU and other financial institutions embrace these technologies, the future of lending looks brighter than ever before. With the LSS leading the way, the possibilities are endless for creating a more accessible, efficient, and customer-centric financial ecosystem.

For more information on this industry first initiative and to learn more about how the LSS can help you improve your lending processes, please get in touch