Innovation

Loanworks has been at the forefront of financial technology innovation since its inception. The hallmark of the creation is the development of cutting-edge, fully automated, straight-through processing loan origination solutions, particularly the world's first in this category.

Urvesh Vibahkar highlighted, "No other company provides this kind of straight-through processing solution. We created it, and it is the breakthrough innovation in the lending industry."

This transformative innovation emerged as a response to the digital age's growing demands. Loanworks recognized the need for online loan origination and processing software catering to the mortgage industry. This innovation encompasses self-service channel automation, document management, workflow automation, rich integration, an intelligent decision engine, and customer communication. The cloud-based Loanworks origination solution automates the entire origination workflow from start to finish. It incorporates everything from lead capture, credit assessment, and credit decisions to mortgage document preparation and settlement.

Concrete evidence echoes this impact within the Philippines, where Loanworks' presence has fueled economic growth and job creation. It has generated over 100 quality jobs in the past fiscal year, particularly in Manila, positioning Loanworks as a significant contributor to the local economy. Beyond job creation, Loanworks has invested in nurturing our local talent through skill development initiatives. This innovation has equipped over 150 Filipino professionals with cutting-edge expertise, solidifying the Philippines' reputation as a burgeoning hub for financial technology.

With this, Loanworks' commitment to excellence is evident, ultimately contributing to its status as a pioneering force in the financial industry.

Inspiration

Loanworks embarked on its innovation journey because it recognized a crucial need in the market. The founders, Jim Christie and Peter James felt compelled to offer homebuyers an alternative to traditional banks. Their initial motivation was clear: to provide homebuyers with an alternative to traditional banks. They believed they could offer cheaper and more flexible home loans. This initial foray into challenging the status quo sowed the seeds for what would later become an unceasing commitment to innovation.

As Jason Goodacre, the Customer Relationship Manager, mentioned, “Let us know that handling loan origination is time-consuming and inefficient. Loanworks helps lenders reduce their cost to serve and also improve their customer experience."

The team recognized a growing need for streamlined and efficient loan origination and processing. With the internet boom, they saw the potential for technology to revolutionize how financial institutions operated. This recognition was the spark that would lead to the creation of the world's first fully automated straight-through processing loan origination solution.

The motivation behind this innovation was twofold. Firstly, it stemmed from a relentless desire to enhance the efficiency of the financial industry. Loanworks believed that they could leverage technology to not only streamline processes but also make financial services more accessible, affordable, and efficient for everyone.

In one of the company's audiovisual presentations, Andrew Duerden, Director of Sales at Loanworks, articulates this perspective by stating, “In a world where consumers effortlessly conduct transactions with their watches, manage entire enterprises from their laptops, and send encrypted messages globally, accessing files with a fingerprint — a reality that resembled science fiction just a decade ago — the question arises: Will they endure archaic hurdles to access your product?” According to him, "In this transformative era, an established reputation is no longer a safeguard for a company. Brand loyalty has diminished, and consumers are exploring various options. The victors will be those who prioritize simplicity and ease for their customers. This necessitates a greater emphasis on digitization complemented by access to top-notch customer service."

Loanworks innovation was driven by the broader purpose of democratizing access to financial services. They saw the potential to empower lenders, aggregators, and originators by providing them with advanced technology solutions that would redefine how loans were originated and processed.

Overall impact

Loanworks Technologies' innovative solutions have forged a path of positive transformation, leaving an indelible impact on society, the environment, and the business landscape. Their unwavering commitment to democratizing financial services fosters economic growth, reduces income inequalities, and empowers underserved populations. Job creation enhances living standards and social well-being, while efficiency and a customer-centric approach streamline the financial sector, reducing stress and uncertainty for borrowers. Their embrace of technology-driven solutions and automation contributes to environmental sustainability by reducing the carbon footprint and promoting energy efficiency.

Positioning Loanworks as a frontrunner in the financial technology sector, their innovations have streamlined operations, reduced costs, and attracted a growing client base. Industry recognition through numerous awards underscores their market leadership and ability to deliver state-of-the-art financial technology. Their holistic impact on society, the environment, and the business world embodies their dedication to creating positive and lasting change.

Business benefit

Loanworks' trajectory is a testament to its commitment to innovation and global sustainability. Gerard Cayetano highlighted, "Our alignment with UN Sustainable Development Goal No. 17 reflects our collaborative ethos, crucial in achieving SDGs." He elaborated on their innovative solutions, emphasizing the substantial operational efficiencies within their Philippines-based outsourcing division, which expanded to employ over 300 specialists, serving a broad client base. Cayetano underscored, "This operational efficiency not only reduced client costs by up to 60% but also mirrored our dedication to bolstering business growth while maintaining cost-effectiveness."

The ripples of their innovations extend far beyond their internal functions. Cayetano shared that the innovative solutions have garnered industry recognition through numerous awards. These accolades testify to their market leadership and ability to deliver state-of-the-art financial technology that directly benefits their clients and the broader financial industry.

In conclusion, Loanworks' innovation celebrates a multifaceted success narrative. Their trailblazing advancements propelled them to lead the financial technology sector and revolutionized operations, trimming costs and broadening clientele. Loanworks' enduring pursuit of innovation and excellence sets industry benchmarks, cementing its role as a pioneering influence in both the Philippines and Australia.

Social and environmental benefit

Loanworks Technologies' pioneering innovations, particularly their fully automated straight-through processing loan origination solutions, extend their positive impacts on society and the environment, creating a ripple effect that benefits individuals, communities, and the planet.

Societal Benefits:

1. Financial Inclusion: "Loanworks' drive towards financial inclusion is a cornerstone of our mission," remarked Gerard Cayetano, Risk and Compliance Manager. By democratizing access to financial services, their innovative solutions break down barriers and make affordable loans accessible to a broader range of individuals and businesses. It stimulates economic growth by empowering more people and businesses to invest, expand, or embark on new ventures, fostering prosperity. Moreover, it is pivotal in reducing income inequalities and ensuring that financial services are available to everyone, regardless of socioeconomic background. Loanworks' initiatives have led to a 25% increase in loan accessibility for small businesses and individuals with limited credit histories. It paves the way for a more equitable society where opportunities for wealth accumulation are within reach for everyone. Loanworks' commitment to reducing disparities and fostering financial inclusivity is evident in its multifaceted impact, bridging gaps and enabling economic growth in both the Philippines and Australia. This aligns cohesively with their vision for a more equitable financial sector, resonating with the United Nations Sustainable Development Goal No. 10: Reduced Inequalities.

2. Job Creation: The exponential growth and expansion of Loanworks have translated into a tangible and positive impact on job creation. Employing over 300 specialists, the company has become a source of employment opportunities, particularly in Manila, Philippines, where its operations are located. This effect reverberates through local economies as the infusion of job opportunities stimulates economic activity. These opportunities provide a means of livelihood and enhance living standards, ensuring that individuals and families have access to better financial well-being. This contribution to job creation goes beyond economics; it fosters a sense of social well-being by empowering communities and contributing to a higher quality of life for individuals in the areas they serve.

In a shared company video, Marvin Agabin, who oversees a team of service delivery leaders at Loanworks, adds further testament to the company's commitment to its workforce. He explains, "I oversee a team of service delivery leaders who, in turn, are responsible for specialist staff. Ultimately, I have to monitor the quality and consistency of work and productivity to ensure we meet our client's service level agreement. We provide ongoing coaching, guidance, and performance reviews to maintain high standards. We have a 92% retention rate for our loan processing staff, and you can rest easy knowing we are ASIC and APRA compliant." This underscores Loanworks' dedication to job creation and sustaining a work environment characterized by excellence, growth, and compliance with industry standards.

This contribution to job creation goes beyond economics; it fosters a sense of social well-being by empowering communities and contributing to a higher quality of life for individuals in the areas they serve. Loanworks empowers its workforce through professional development and a culture of collaboration, contributing to decent work and fostering economic growth in alignment with United Nations Sustainable Development Goal No. 8: Decent Work and Economic Growth.

3. Efficiency and Customer-Centric Approach: The innovations enhance the efficiency of the financial sector. Faster loan approvals and processing times not only reduce the operational burden for financial institutions but also provide borrowers with a more streamlined and customer-centric experience. This translates into less stress and uncertainty when seeking financial assistance, ultimately contributing to individual and community well-being.

Environmental Benefits:

1. Reduced Carbon Footprint and Paperless Transactions: Loanworks' transition to automated loan origination solutions has significantly curtailed the carbon footprint historically associated with conventional financial processes. Through adopting digital methods, the company has dramatically decreased paperwork, physical visits, and travel necessities in the loan application process. This strategic move has notably reduced paper consumption, minimized waste, and preserved vital natural resources. Moreover, the decreased need for physical visits and travel has resulted in a substantial drop in greenhouse gas emissions, contributing to a more sustainable environment. According to Gerard Cayetano, the shift to digital transactions has saved approximately 200 tons of paper annually, equivalent to preserving nearly 3,000 trees a year. Furthermore, it reveals a 35% reduction in employee travel, equating to a significant drop in CO2 emissions, totaling approximately 500 metric tons annually. These figures affirm Loanworks' commitment to environmental sustainability by embracing technology to forge a paperless and eco-friendly approach in the financial industry.

2. Energy Efficiency: Comparative studies comparing Loanworks' traditional manual procedures with the current automated systems revealed a substantial 40% reduction in energy consumption. This decrease, directly attributed to adopting automated loan origination systems, amounts to an annual saving of around 250,000 kWh. This highlights Loanworks' commitment to a sustainable business model. Gerard Cayetano affirmed, "It demonstrates Loanworks' dedication to energy-efficient practices and their proactive stance in lessening environmental impact while optimizing operational costs through technological advancements." The shift towards technology and automation in the loan origination process demands less energy than manual, paper-based procedures. This enhanced energy efficiency lowers operational expenses and contributes to a greener and more sustainable business approach.

Loanworks' innovations offer a myriad of societal and environmental benefits. They promote financial inclusion, create job opportunities, streamline processes, and contribute to a greener and more sustainable approach to financial services. These positive contributions embody the company's commitment to a more equitable and environmentally conscious future.

Interviews

Gerard Cayetano, Risk and Compliance Manager

Urvesh Vibhakar, Solutions Delivery Manager

Jason Goodacre, Outsourced Services Manager