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Powering simplified and scalable mortgage application processing.

Periodic Reporting for period 1 - CL Platform (Powering simplified and scalable mortgage application processing.)

Reporting period: 2019-07-01 to 2019-12-31

Mortgage application and approval processes are chronically inefficient for consumers, advisors and lenders. While other sectors have embraced the new technology, offering seamless instant experiences, the end-to-end mortgage application process remains inefficient and archaic. Multiple manual checks are needed during the process to identify and authenticate customers, and to validate the financial information they have provided. Data from third-party providers is also reviewed manually, including their credit score, slowing down the process and ultimately delaying the lending decision.

Through the use of a digital application portal and open data and open banking, CL Platform transforms the consumer experience. It reduces the data requirement by at least 50% and the application time for consumers from 4 weeks to less than 30 minutes. CL Platform also enables advisors to process and analyse a greater volume of applicants by automating over 60% of the low value administrative tasks. By automatically processing and analysing application data, CL Platform can pre-screen applications and predict those with a high potential of converting to mortgages. For advisors, CL Platform reduces administration costs by at least 60%, reducing the current time spent on low value administration tasks from 80% to 20%. While for lenders it will reduce the cost of mortgage application processing from 4% to 1% of the agreed mortgage.

CL platform delivers across all sustainability pillars - (i) environmental - digitising a paper intensive process removing 1,000’s of pieces of paper for each application ; (ii) social - promoting and enabling greater financial inclusion via mortgage education and consumer readiness and (iii) economic - providing optimal access among consumer to appropriate levels of personal credit facilitating new home purchase and/or refinancing.

Credit Logic’s vision is to transform the mortgage application process from a document-heavy (average 150 pages), labour-intensive 4-week process to a simple, user-friendly 30-minute activity. Our overall objective is to create an all-in-one mortgage application platform that enables our mortgage provider customers deliver unrivalled mortgage applicant experience and an efficient, scalable operating model
After undertaking relevant activities, we have developed an in-depth understanding of the likely criteria demanded by mortgage advisors and brokers to streamline the mortgage application process.

During the Phase 1 report we have developed an outline EIC Accelerator work plan which comprises of 6 work packages designed to bring CL Clever from TRL-6 to TRL-8, with defined tasks and time lengths presented in a Gantt Chart. We have also established the key resources for the project including goods and services, subcontracting and the related costs as well as other key stakeholders who are vital for the successful delivery of CL Clever. Included in the report is a detailed risk register, containing the key technical and commercial risks involved in the commercialisation of CL Clever, an indication of the risk level and comprehensive mitigation strategies. We have identified the key mortgage specific regulations that advisors and lenders must follow and during this project. There has been extensive consultation with our legal advisors McCann Fitzgerald to ensure all workflows allow lenders and advisors to adhere to compliance regulations and dialogues with our early adopters to advise them on how compliant processes are reserved whilst using our platform.

The wider market is large enough to support more than one competing solution, therefore we consider that the threat of competing viable alternatives also reaching the market does not constitute a major barrier to successful commercialisation by CL Clever (though this is an area that must be monitored to assure the sustainability of the business). As a result of this Phase 1 project, we have been able to review our business strategy, and to construct a robust business plan, with realistic and achievable financial forecasts.

To undertake the proposed EIC Accelerator project we will require a Business Analyst, a Software Testing Expert and an experienced Software Developer. Following on from the feasibility study we have concluded there is a certain business case for CL Platform and that the product development is achievable within 21 months and with a budget of €1.98 million. For funding, we will pursue the Horizon 2020 SME Instrument EIC Accelerator funding scheme, as well as using existing funds from private investors and attempting to obtain further funding.
"None of the current technologies which have been developed to aid brokers and lenders within the mortgage application process have been focused on solving the biggest pain points: the amount of data required from the customer and automating the risk calculations process.

CL Platform is a comprehensive mortgage application software platform that benefits all stakeholders in the mortgage application process. The software uniquely streamlines mortgage application data into one form creating a new mortgage application data standard. Having standardised the application data form, the platform can then integrate the consumer, their advisor and the lender. It has reinvented and simplified the application process through a digitally enabled customer experience. This makes more efficient, scalable and compliant mortgage applications and a better experience for all stakeholders. CL Platform enables consumers, advisors and lenders to interact and share data throughout the mortgage application process.
Value Proposition:
Value#1: Quicker application processing time. Through the use of a digital application portal and open data and open banking, CL Platform transforms the consumer experience. It reduces the data requirement by 50% and the application time for consumers from 4 weeks to 30 minutes. CL Platform also enables advisors to process and analyse a greater volume of applicants by automating over 60% of the low value administrative tasks.
Value#2: Reduced wasted resources. By automatically processing and analysing application data, CL Platform can pre-screen applications and predict those with a high potential of converting to mortgages. For advisors, working on only high potential applications will lower the cost of conversion. CL Platform also produces an application scoring that can be shared with lenders. This helps lenders pre-screen risk and avoid reprocessing or declined applications.
Value#3: Lower costs. By making the mortgage application process more efficient for all stakeholders and reducing waste, CL Platform creates significant cost saving. For advisors, CL Platform reduces administration costs by at least 60%, reducing the current time spent on low value administration tasks from 80% to 20%. While for lenders it will reduce the cost of mortgage application processing from 4% to 1% of the agreed mortgage. In addition, conversion costs will be lowered by reducing applications with low potential and indicating risk to lenders early on in the process. CL Platform will enable advisors and lenders to respond to increasing demand without have to increase headcount costs.
Value#4: Sustainability. CL platform delivers across all sustainability pillars."
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