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AI-driven lending platform won’t be the end for brokers

March 14, 2019 / NEWS

AI-driven lending platform won’t be the end for brokers

A new Artificial Intelligence-powered lending platform won’t be the end of human loan brokers, the technology’s creators say, because a broker’s ability to understand the intricacies of the application cannot be replicated by a machine.

That’s the explanation given by Challis Capital Partners managing director Bill Saloris and Global Capital Commercial sales director Andrew West, whose companies are behind the creation of Lenflo – an AI-driven technology that touts more accurate pricing estimations and a quicker approval process for all kinds of loans.

That experience of sitting down, articulating, and getting an understanding of what the circumstances are is always important,” Mr Saloris said. “When you’re talking cross-company cash flows, cash flow bumps, and property development options sometimes it’s important to chat it through to get a good understanding.

Challis Capital and Global Capital Commercial have even made a pitch to home loan brokers to take up the technology in the wake of the Hayne report.

If it’s a simple thing of mum and dad going out and buying a house and they want to borrow $700,000 against a million and here’s how much they earn – fine. Do that online.

The complexity surrounding commercial and business loans is what Global Capital Commercial, whose parent company is Challis Capital, set out to ease when it poured $3 million into developing Lenflo over the past few years.

The platform is aimed at digitising much of the process around commercial loan applications – the primary business of Global Capital – for their brokers with AI, then using the information in these forms to match a borrower to the best-suited lender.

Mr West said the system could also give more accurate information regarding the fees, interest rates, and other charges that would help clients make important financial decisions.

If you go to someone and you have a 2 per cent variance, which is not uncommon, obviously their ability to make a decision is not as accurate as if you come back to them within half of a per cent or a quarter of per cent,” Mr West said.

Global Capital Commercial has sought to advertise the benefits of Lenflo beyond commercial brokers, however, and delivered a pitch to home loan brokers.

It claims Lenflo “will help brokers diversify and significantly grow their business” into other areas after the Hayne royal commission recommended a swath of changes to the home loan broking industry, including a switch from a lender-paid style of remuneration to one where all fees are paid by the borrower.

Lucas Baird.
Financial Review.

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