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Adelaide digital lender lands major Bendigo Bank deal


Fintech platform and digital lender Tic:Toc has announced a $25 billion, seven-year home loan funding partnership with Bendigo and Adelaide Bank.

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The Adelaide-based company says the funding deal, effective immediately, represents one of the largest fintech and bank partnerships in Australian history. It also signals Bendigo and Adelaide Bank’s continued confidence in the strength of Tic:Toc’s operating model.

Backed by Bendigo and Adelaide Bank, IAG and Genworth, Tic:Toc is Australia’s first fully digital lender.

The company launched in 2017 with just 12 employees and has quickly grown into a team of 97 ‘Tockers’.

Tic:Toc’s digital platform allows it to automate the home loan assessment process.

Bendigo and Adelaide Bank has been using a Tic:Toc ‘white label’ digital platform since 2018 and Aussie Home Loans also adopted the platform this year.

The agreement will give Tic:Toc the capacity to increase its monthly volumes by more than 300 per cent, further accelerating its growth.

Founder and CEO of Tic:Toc Anthony Baum said the funding agreement signalled Bendigo and Adelaide Bank’s continued confidence in the partnership and the strength of Tic:Toc’s operating model.

“This extension of our partnership gives Tic:Toc access of up to $25bn of additional funding over the next seven years, and highlights the competitive advantage of our asset-light model, with Tic:Toc not bearing credit or interest rate risk,” he said.

“Our valued partnership with Bendigo and Adelaide Bank enables us to operate as a platform company, not an ADI or finance company.

“This means we achieve a greater return on capital as we’re investing our shareholders’ funds into our technology, not using it to fund loans.”

“Ultimately, Tic:Toc wants to help more Australians access faster and more cost-effective home loan experiences. We’ve been doing that since 2017, and this funding agreement ensures we can not only keep doing this but advance our lead as Australia’s pre-eminent home loan platform.”

Head of Third Party Banking at Bendigo and Adelaide Bank Darren Kasehagen said Tic:Toc’s proprietary platform enabled Bendigo and Adelaide Bank to benefit from highly efficient home loan fulfilment.

“We have seen significant growth in our residential lending activity via third-party channels, and Tic:Toc is an important strategic partner for us to grow our market share,” he said.

“We are excited to announce this market-defining distribution agreement with a partner that shares our commitment to innovation and customer experience excellence for Australian consumers.”

Tic:Toc also has small satellite offices in Sydney and Perth and in May officially opened its new Adelaide headquarters in King William Street, opposite the Town Hall.

Home lending across Australia has reached record levels in the past 12 months, driven by unprecedented low interest rates and government grants such as HomeBuilder.

Tic:Toc has also launched a third revenue stream, which breaks down its technology from a full platform to a series of modules that can be offered to customers under a software as a service business model.

The first customers were signed up under this model last year with a New Zealand client becoming Tic:Toc’s first international customer about six months ago.

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