It is the latest tech investment from Permanent TSB as a new survey shows people increasingly seek out digital services in banking.
Permanent TSB has inked a partnership with Irish fintech start-up CreditLogic to use its digital mortgage application platform.
CreditLogic, founded in 2018 by a former KBC Ireland innovation boss, develops software that aims to improve the mortgage process online.
The deal with Permanent TSB will allow applicants to run through the entire mortgage application process digitally. The bank said the platform will be up and running “later this year”.
Headed up by Eddie Dillon and co-founder Gavin Bennett, CreditLogic raised €1.5m last year with Enterprise Ireland among its backers.
It is developing tools using open banking, artificial intelligence and data analytics to improve the loan application process. According to the start-up, its process is personalised to the applicant and can be completed in five steps in under an hour.
“Permanent TSB is synonymous with mortgages in Ireland and to partner with them is a massive endorsement of our platform and its delivery of unique digital-first lending processes,” Dillon said.
Permanent TSB has around an 18pc share of the country’s mortgage market and with KBC and Ulster Bank leaving the Irish market, it could be primed for a larger share in the future.
“We have recently introduced a new digital-based current account opening process and we expect to have this new mortgage application platform available in the second half of the year,” Tom Hayes, CTO of Permanent TSB, said.
“These are important milestones on our journey to making a best-in-class retail and SME bank for Irish consumers.”
Permanent TSB recently announced it was hiring 180 more staff with a particular focus on technology and data analytics as part of a wider tech push at the bank.
Demand for digital services in banking, whether from incumbents or fintech upstarts, has soared in recent years.
A survey published today (14 June) found that three out of five Irish people expect banking will be completely digital in 10 years. The survey was carried out by Censuswide on behalf of Wellington IT.
It found that a quarter of people would prefer to apply for a loan online and 18pc would like to digitally apply for a mortgage.
“Our research shows that while most people would prefer a banking experience that’s a combination of digital and in-branch, we’re certainly seeing the trend moving towards digital, particularly among younger age groups,” Wellington IT managing director Declan Colfer said.
Two-thirds of respondents said they prefer to transfer money digitally, with the younger age groups not using bank branches.
“Interestingly, over half of people believe physical branches won’t exist in 10 years’ time and 33pc would prefer their banking experience to be entirely digital, indicating the need for continued digital investment,” Colfer added.
Meanwhile Ireland’s incumbent banks, including Permanent TSB, are attempting to take on the popular apps Revolut and N26 with their joint venture payments app.