SAP SE (NYSE: SAP) has announced Australian residential and commercial mortgage lender, RedZed, has become the first mortgage lender in the world to go live with SAP Cloud for Banking. This implementation will underpin the business’ shift towards a data-driven organisation and support its continued growth.
Founded in 2006, RedZed has grown at a compound annual growth rate of 30% for the last five years. It now provides a combination of residential and commercial mortgages to more than 6,000 self-employed Australians. After a period of rapid growth, RedZed sought a technology infrastructure solution that provided it with the scalability and flexibility it needed for growth, including increased integration potential for its future technology needs. It needed a robust software-as-a-service platform that would support the business as it continues to scale, as well as provide an improved experience for staff, brokers and its customers.
RedZed selected SAP Cloud for Banking after running a supplier evaluation exploring: ease of implementation and use; open cloud-based platform with API driven architecture; evidence of ongoing investment in research and development, and a platform that was designed as an Australian model bank, to meet local regulatory requirements.
SAP Cloud for Banking was selected to deliver a flexible and intuitive platform that would provide it with the speed and agility required to scale. SAP Cloud for Banking comprises SAP S/4HANA Finance; SAP Banking (Loans and Deposits); and SAP Payments Engine, running on SAP Cloud and managed by SAP Cloud Application Services
Evan Dwyer, Managing Director, RedZed says, “Olympic runners don’t wear thongs. We want to be the largest provider of financial services for the self-employed in Australia – bigger than the big four’s business banks. We have huge ambitions – in the near term we want to increase our loan book to $10 billion. In order to do this, we need a world class system that will match our vision and enable us to scale.”
In partnership with a specialist team from SAP, RedZed migrated its data into SAP Cloud for Banking, hosted on Amazon Web Services (AWS). The agile, open and secure platform is enabling the business to drive improved operational management through access to real time data and seamless integration with third party APIs.
By consolidating its data into one platform, the business is significantly improving experiences for staff, customers and brokers. Staff now have access to customer data in real time which is not only reducing the time it takes to process and manage mortgage applications but is enabling them to provide quick and timely responses to customer enquiries. The new platform has also made it easier for brokers to work with prospective customers and RedZed, streamlining the process of assessing, identifying and originating mortgage loans in the platform.
“SAP Cloud for Banking’s robust infrastructure provides us with the peace of mind that we will have a strong technology platform that will support our continued growth. Furthermore, the software meets the rigorous contractual, regulatory and cybersecurity frameworks that underpin the financial services sector in Australia.”
“The new platform has enabled our staff to realise value quickly by providing accurate data that is improving our relationship with our customers and partners. This data also means our senior management team are equipped with real-time updates on business performance and can respond to the needs of investors and regulators as and when required,” Dwyer adds.
Damien Bueno, President and Managing Director, SAP Australia and New Zealand says:
“The home loan market is extremely competitive and being able to predict and respond quickly to customer needs is critical for today’s lenders. With SAP Cloud for Banking, RedZed has digitally enabled itself with a platform that is agile and future looking, ensuring it can quickly take advantage of opportunities and predict customer needs.
SAP may not have always been thought of as the partner to enable a fast-growing finance business like RedZed, but we’ve proved ourselves time and again as an agile cloud technology partner for the financial services sector. Our cloud-based core banking solution is quick to deploy, and easy to use, delivering RedZed the opportunity to build delightful customer experiences and meet its vision to be the biggest provider of financial services for the self-employed in Australia.”
SAP Cloud for Banking was designed and delivered by a team of a solution architects based in Australia, with the Australian neobank Xinja the first organisation in the world to go live on the platform in 2018.
