Online business lending carves out a niche

Sandstone Technology is planning to extend its tablet-based home loan application system so it can be used for online business lending.

So far, just one Australian financial institution - the WA-based P&N Bank - has picked up Sandstone's home loan application, which allows customers to apply for a home loan online, supply the required documentation, and then track the progress of their application through to its conclusion. The application went live in July.

Speaking at last week's FST Media Future of Banking conference in Sydney, Matthew Cagney, a banking solutions consultant, said there was a growing demand for such systems. He cited RFi research which predicts that 36 per cent of people looking for a home loan will expect to apply online by 2014. Sandstone said last week that it had another two prospects in the pipeline.

Martyn Beer, general manager of lending solutions for Sandstone, said there were now plans to extend the tool to handle more complex products, such as small business loans. Sandstone was also planning to modify the home loan application, so it could be used by the self-employed.

He said home loan self-service for the self-employed would likely be available in six to nine months.