Allica sees £65M of instant decision-in-principles one month after launching new automated tool

Allica Bank has seen £65m of instant commercial mortgage decision-in-principle applications since launching its new automated application tool at the start of November.

The instant decision-in-principle allows brokers to get an immediate decision as soon as an application is submitted. Allica says it is one of the first banks to offer such a service for commercial mortgages, providing brokers and their clients with maximum clarity at the start of the lending process.

Of the £65m of decision-in-principle applications it has processed automatically, 45% have subsequently been converted into full commercial mortgage applications. By automating the DIP process, Allica explains that this has allowed it to free up hours of its lending team’s time, which it can then focus on processing these full applications quicker, building broker relationships and other added value activity.

Allica Bank said its brokers often found the DIP process to be a sticking point when working with banks and it has developed this tool in direct response to broker feedback. Now, using real-time data feeds, it can generate a decision-in-principle for a broker automatically and instantly.

The bank – which announced profitability earlier this year – plans to reach £500 million in committed loan offers between September and the end of the year. It also launched a ten-year fixed-rate mortgage in October in response to broker demand.

Allica’s Director of Lending Product, Nick Moss, says the tool is an example of how technology can transform the broker experience without undermining key relationships: “We know how important client relationships are to our brokers. By enabling brokers to get an instant decision-in-principle, they can provide immediate clarity to their clients and help them find funding at speed. In today’s challenging economic environment, that’s never been more crucial.

“Allica believes in using technology to enhance the broker experience, but not at the expense of the human relationships we have with them. Our new instant decision-in-principle tool frees up our staff to focus on adding value throughout the lending process, to properly assess the nuances of full applications, and build even stronger relationships with our vital broker community.

“We have plenty more ideas in the works like this, and we’re looking forward to learning how else we can help brokers support their clients.”

Adam Fulcher at commercial finance specialist Brightstar said, “Allica’s new instant DIP tool has been a big help in providing our brokers with a quick response on lending decisions and given peace of mind to many of our clients who are looking for commercial finance. Allica Bank are making big waves and it’s tools like the instant DIP that are making them a real challenger in the commercial finance market.’’