Instant Mortgages, Just Add Data and Decision Management
Singapore’s OCBC Bank is using FICO technology to approve mortgages in 60 minutes.
The winner of the 2021 FICO Decisions Award for Customer Onboarding & Management used FICO® Origination Manager to create a self-serve online ‘instant mortgage’ service.
OCBC’s offering has been very successful in Singapore, and particularly timely. It was fully deployed in May 2020 in the middle of the country’s COVID19 Circuit Breaker period whereby face-to-face meetings could not take place.
During the lockdown period, $700m loans were signed-up, enabling the bank to maintain strong business momentum. In 2020, 30% of loans were signed-up through this platform.
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“OCBC has a reputation for innovation,” said Dinesh Suresh, head of digital strategy, consumer secured lending at OCBC Bank. “For example, it was the first bank in Singapore to allow customers to instantly open and use a new bank account. We wanted to build on this by offering ‘instant mortgages’ as the next industry-first. Central to this was a decisioning system that could draw all the threads of the loan application together and weave it into the fabric of an online ‘self-service’ application channel.”
OCBC worked with FICO to streamline this mortgage application process, which required the submission of various documents to provide evidence of employment, income, financial assets, property details and repayment records. To achieve this, the team had to integrate MyInfo, the Singapore e-government’s one-stop data platform for citizens, run its own proprietary eKYC (Electronic Know Your Customer) over applications, automate policy decisions and allow for a manual review by bank staff.
For its achievements, OCBC won a 2021 FICO® Decisions Award for customer onboarding & management.
“Anyone who has ever had to apply for a mortgage knows that it is something you hope to do only a few times in your life,” said Nikhil Behl chief marketing officer at FICO. “Transforming this experience into something faster and simpler shows that OCBC identified an opportunity to change the customer journey for the better.”
“The modern consumer gravitates towards companies that can make doing business as conveniently as possible,” said Tomas Klinger, decision science and data director at Home Credit China and one of the FICO Decisions Awards judges. “You don’t see these types of banking innovations that often for mortgages as it requires more data collection and very accurate analysis. Creating a 60-minute mortgage application service is exactly the type of offering that gets consumers recommending a bank to their social circle. The judges were impressed with the innovation and commitment of OCBC to modernizing its business.”