Digital-only mortgage lender Tic:Toc has locked in long-term funding, after Bendigo and Adelaide Bank agreed to a seven-year extension of their funding deal.

Tic:Toc announced yesterday that under the new agreement it would have access to up to A$25 billion of funding. It will be able to increase its monthly volumes threefold.

Under the funding agreement, loans originated by Tic:Toc sit on the Bendigo and Adelaide Bank balance sheet. The bank said Tic:Toc was an important part of its growth in third party lending.

The success of the arrangement can be seen in the growth in Bendigo and Adelaide’s mortgage book, which is up 14.2 per cent over the year to May according to APRA figures.

Tic:Toc describes its business model as a “proprietary AI-driven lending platform, which digitises the lending fulfilment process into simple, machine-driven tasks”.

The company’s founder and chief executive Anthony Baum said that because the business is “asset-light” it can invest returns in its technology.