Singapore-based Oversea-Chinese Banking Corporation (OCBC) has launched a 60-minute mortgage approval service for Singaporeans by leveraging automation and straight-through processing on mortgages originated online that represents the first digital end-to-end loan application and acceptance process.

Prior to the implementation, the status quo was that all new home loan applications were manually keyed into the bank’s mortgage origination system, called CLOUDS (Consumer Lending Origination Uber Decisioning System). Once approved, a letter of offer was generated for the customer’s signature. All of which was time-consuming for the customer and the process created friction for OCBC.

OCBC worked with data analytics firm 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) checks over applications, automate policy decisions, and allow for a manual review by bank staff.

The integration of MyInfo into the process meant that customer details were pre-populated and mapped to the correct fields in CLOUDS. It also meant OCBC was not required to obtain physical documents to verify a customer’s identity or to separately obtain a photograph. eKYC checks are essentially performed at this point. However, OCBC also integrated its own proprietary real-time digital KYC checks to ensure total compliance with its own system and standards.

Decisions about loan size are calculated by looking at numerous factors, such as the regulatory total debt servicing ratio and loan-to-value ratio. Income is verified against tax returns lodged with Singapore’s Tax Authority, as the returns are also integrated into MyInfo and property valuations are determined using application programming interface links to third-party valuers.

Once all the calculations are made and a decision proposed, FICO’s solution passes the application to a direct acquisition officer to review and complete the case. This is to ensure data, valuations and pricing all look in order before a PDF letter of offer is sent for the customer’s digital acceptance.

“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.”