The innovative Feng Yun mortgage offers a 40-year loan with fully flexible changes in repayment terms and customers can use online tools to check the value of a property and apply for a loan.
October 10, 2018 | Richard HartungAround the world, innovation in mortgage lending has been relatively slow and limited.
SinoPac Taiwan has come up with a product that offers more flexibility in payments than most other lenders, faster processing, and value-added services for its customers as well. The bank believes that the mortgage is the most important in-depth engagement between an individual and the bank.
SinoPac decided to add more value, changing the longstanding fundamental concept of paying a fixed payment for a mortgage for 20 years with only one or two chances of changes in payment terms. By developing a new framework for its loans, it was able to develop a significant competitive advantage.
Solution
Rather than simply making small tweaks to existing products, the bank decided to offer a flexible product for a lifetime. SinoPac was the first bank in Taiwan to extend from 20 to 40 years offering the maximum LTV (loan-to-value) ratio which lowered the monthly payment by 60%.
Customers can input the address of a home and calculate how much they can borrow, with instant online appraisal and credit limit calculation in about 30 seconds.
A customers’ mortgage payments can be adjusted, just before the next payment date, and one can go online and change payment terms, within a certain cap. Payments can be changed every month. The lower rate can last for between 3 and 24 months. Once this grace period is over, the bank will recalculate the payment and forecast the new payment term. All this can be done online.
Rather than asking customers to apply for a credit card separately, the customer is issued a a credit card with a limit up to NT$3 million. The bank also cross-sells insurance, and more than 40% of customers sign up for the product.
On the back end, the bank uses an automated risk management and control system. It analyses debt serviceability and post-loan management to reduce credit risk.
Categories: Keywords:LTV, Online And Digital Lending
The innovative Feng Yun mortgage offers a 40-year loan with fully flexible changes in repayment terms and customers can use online tools to check the value of a property and apply for a loan.
October 10, 2018 | Richard HartungAround the world, innovation in mortgage lending has been relatively slow and limited.
SinoPac Taiwan has come up with a product that offers more flexibility in payments than most other lenders, faster processing, and value-added services for its customers as well. The bank believes that the mortgage is the most important in-depth engagement between an individual and the bank.
SinoPac decided to add more value, changing the longstanding fundamental concept of paying a fixed payment for a mortgage for 20 years with only one or two chances of changes in payment terms. By developing a new framework for its loans, it was able to develop a significant competitive advantage.
Solution
Rather than simply making small tweaks to existing products, the bank decided to offer a flexible product for a lifetime. SinoPac was the first bank in Taiwan to extend from 20 to 40 years offering the maximum LTV (loan-to-value) ratio which lowered the monthly payment by 60%.
Customers can input the address of a home and calculate how much they can borrow, with instant online appraisal and credit limit calculation in about 30 seconds.
A customers’ mortgage payments can be adjusted, just before the next payment date, and one can go online and change payment terms, within a certain cap. Payments can be changed every month. The lower rate can last for between 3 and 24 months. Once this grace period is over, the bank will recalculate the payment and forecast the new payment term. All this can be done online.
Rather than asking customers to apply for a credit card separately, the customer is issued a a credit card with a limit up to NT$3 million. The bank also cross-sells insurance, and more than 40% of customers sign up for the product.
On the back end, the bank uses an automated risk management and control system. It analyses debt serviceability and post-loan management to reduce credit risk.
Categories: Keywords:LTV, Online And Digital Lending
