Australian property market lenders are operating within a new context of tighter regulatory controls and swiftly changing market conditions. The need for a deep and clear understanding of portfolio data has never been higher.

A truer picture of opportunity and risk can provide a more accurate understanding of where a client is really at vs. what the paperwork says - and although lenders have long enjoyed access to a wealth of portfolio specific data, it’s property-level data that helps reveal the ‘bigger picture’ view.

Tracey Ah Hee, CoreLogic executive head of data, analytics and solutions explains: “The new ‘Home Loan Portfolio Analysis solution helps identify portfolio blind-spots. We match a lender’s existing portfolio data to property specific data to provide a customer-level data treatment. Lenders can easily see key areas for focus, which is important within such a rapidly changing environment.”

“It ensures lenders can easily identify such as - what the dollar value of portfolio properties on the market is, how much of the portfolio is derived from rental income and what is their percentage exposure to postcodes or developments of interest.”

The analysis provides lenders with a number of credit and risk tools, such as identification of inaccurate or fraudulent information about income from rental properties on loan applications. On a more positive note, it can also be used to support customer engagement by providing customers with a benchmark for rental income calculations.

At-a-glance visual key metrics summary for home loan and non-home loan portfolios help manage exposure to postcodes or developments of interest by identifying negative equity positions, property activity, and weak suburb outlook scores.

The analysis also enables a better assessment of the business rental book, which borrowers have high exposure, and the risk position based on the number of investors in the portfolio.

Marketing teams will appreciate the powerful insight of recognising and alerting to possible attrition: Tracey Ah Hee said, “Selling, buying, moving and renovating clearly influence home loan refinance or bank switching, so understanding the property sales and listings activities of actual customers is critical. Basically, this data allows lenders to proactively support the big financial decisions being taken by their customers, before they walk out the door.”

“Insight into a customer’s actual equity position can identify opportunities for growth, or on the flipside: situations where proactive support may be required.”