Getting a loan approved has never been quicker for Kiwis.

Growing numbers of Kiwi borrowers are having loan money hit their bank accounts in record times – as fast as an hour after first applying – thanks to an Aussie entrepreneur and his leveraging of artificial intelligence (AI).

The technology, which is revolutionising the loans industry in New Zealand and Australia, has been developed by Sydney-based LoanOptions.ai, a company describing itself as a loan matching provider and which launched here in late 2023.

Founder and CEO Julian Fayad – who has been named a Sydney Young Entrepreneur of the Year finalist three years running – says the company is already settling around NZ$1.3m worth of personal, car, business, equipment and non-property loans to Kiwis every month.

One of the keys to its success on both sides of the Tasman is the speed with which clients get the money in their hands.

Not only has the use of AI reduced the application process to as little as five minutes with no impact on a customer’s credit score, but it is also slashing settlement times too. While the average is just under one business day, Fayad says it is very common for it to be achieved the same day – quite commonly after just an hour or two.

“The record for money hitting a client’s account is 36 minutes from an initial inquiry, which is insanely fast,” he says.

Enabling this fast turnaround is where the technology – AutoCompleteEngine (ACE) – comes in. It uses AI to simplify and streamline loan application processes for both borrowers and lenders.

“Often this process was clunky, required mountains of paperwork, online forms and could produce uneven playing fields, especially for people not so financially savvy or literate,” Fayad says. “Now we have a seamless, transparent, quick system and one which keeps the banks honest.”

As a result, the company is growing fast. In Australia it is settling around A$10m every month while in New Zealand – where the average borrowing it processes is $20,000 – it has expanded to a point where the Kiwi operation accounts for 15 to 20% of its total business volume.

Fayad says the technology uses AI models such as machine learning and neural networks to analyse real-time data and create personalised recommendations for clients.

“It matches a client’s individual credit profile with lenders and banks who they fit the criteria for, with the result they get the loans tailored to their specific financial situation. In Australia it has a panel of 90 lenders including Macquarie Group, Westpac and ANZ, and 27 in New Zealand including the BNZ, Gem Finance and Broadlands,” Fayad says.

He says this helps people get financial solutions that are right for them and ensures they don’t pay more in interest than they have to.

“ACE means that where previously a client had to enter lots of details themselves such as their name, date of birth, licence number and address, now we just ask them to upload their licence and scan their bank statements.”

From there the technology uses optical character recognition (OCR) for the licence to pre-fill the data – a task done in seconds – while the software uses an algorithm to categorise various metrics based on bank statements.

It also includes a loan tracker tool that helps a client track the status of their loan and a bank statement analysis report.

He says the technology is so advanced it can do about 80% of all LoanOptions.ai’s lender matching, although the broker still has to intervene to verify things like income and expenses before handing over to the lender of choice.

While the technology is efficient, Fayad says the human element remains very important. Behind LoanOptions.ai is a team that can hold a client’s hand throughout the process: “Great technology helps great humans do their job and this is what is very exciting for me.”

He says it is very easy for a client to access. “The first step is to visit our website (loanoptions.co.nz) where they will be asked to follow a series of prompts and fill in basic information such as their name and contact details.

“We also ask what their priorities are; these include whether are they looking for the lowest interest rate and/or do they want to secure the fastest settlement term. Then the magic happens.”

Fayad, who had a background in web and app development, spent years developing and perfecting the technology before launching LoanOptions.ai in Sydney in 2020.

“I built the original concept but hired smarter people to take it to the next level,” he says. “When we launched version 3.0 in December 2023, we partnered with an outside agency to work on perfecting the design and user experience and to collaborate with our internal team.”

LoanOptions.ai has received several awards including Finance Brokers Association of Australia’s Industry Supplier of the Year in 2023 and Technology Service Provider of the Year at the 2024 Australian Broking Awards, as well as now being a finalist in the Australian AI awards where the winners will be announced later this year.

For more information go to: loanoptions.co.nz or loanoptions.ai