PROPERTY

Big Banks Need to Push into Specialised property tech Group: ANZ acquires REALas

 

Bishwas Bhattarai, Senior Lending Manager
M. Comm. (Banking & Finance) UNSW, Dip. Fin. Plan.

04 October 2017

Customers and Advocates believe Banks are very conservatice when comes to technical education and not offering any property related services like Market and Property updates .

Nation’s 4th largest Bank has been swift to acquire the start-up company REALas. REALas is a start-up company that specialises in predicting property prices for the Australia and is believed to cover over 90% of Australian market.

ANZ Managing Director Peter Dalton said “This is important acquisition for our digital transformation as we know customers are increasingly turning to online resources for help as they navigate Australian property market”.

It is no surprise everyone wants to capitalise on the booming Australia property market. And the race to find the next hot spot with high capital growth has never been fierce. With the technological advancement, and readiness of the information digital platform has been preferred choice for the most.

REALas has been operational since 2011 and specialises on the predicting the property price movement by decoding the complex data and works in harmony with property experts, Royal Melbourne Institute of Technology University Melbourne plus other stakeholders.

It is believed REALas will work as independent subsidiary for ANZ Bank; however it is not surprise ANZ has seen a great synergy in Joint Venture. It can be believed ANZ will use REALas to add value for its property seekers, investor to add value to existing customer and attract new mortgage customers.

June this year Realestate.com.au (REA) Group moves into broking group by purchasing 80.3% stake in Smartline mortgage broking firm for $67 million. And also has entered into mortgage broking partnership with National Australian Bank. And is estimated by December this year REA in conjunction with NAB may have its own white label home loan product.

Similarly, the on the same month Domain Group entered the joint venture with Lendi- a broking business group from Sydney. Domain Group has acquired 60% stake in Lendi Group. Domain Loan finder in conjunction with Lendi is already operational.

It can be widely assumed the move for those prominent property websites has been driven by the commission or income. For example REA is expecting to add $26-30 million revenue next year with Smartline partnership as reported by ABC.

Also, there is a wide cry from consumers and advocates major lenders are being very conservative and not offering the digital or technical edge to property seekers. Australian financial services have not been seen offering expert property and market reports which are readily available in internet. With the slow credit growth and prediction of slow property market cycle means there would be more competition next year and those added value or service could provide the competitive edge. Only service associates with majors are the Core logic’s property price estimates and some have integrated those to mobile apps.

It is anticipated in coming days, more of these specialised property forecasting services, will form part of the major lending institution. Digital penetration in Australia is still very low as most potential mortgage customer still relies on face to face conversation with their banker and/ or mortgage brokers as opposed to via digital channel. Only handful lenders only operate internet only lending which are deemed for more seasoned investor or no-frill products.