One click is all it takes to get a mortgage, or so says Western Australia-based FinTech company One Click Group (ASX:1CG) is set to expand its One Click Mortgage product domestically, which is now available in all states and territories of Australia.
Since its launch in April, the One Click Mortgage product has been generating substantial revenue, with a considerable number of mortgage applications currently in progress. Following initial customer engagement, the product has undergone refinements, resulting in a streamlined offering that has garnered excellent continued engagement throughout the month of May.
Operating as a mortgage broker, i.e. the intermediary, One Click Mortgages receives an upfront fee of approximately 0.60% of the financed amount and a trail commission of around 0.15% per annum, depending on the financial institution providing the finance. With the product now live across Australia, the Company foresees a considerable revenue opportunity in this new vertical.
Leveraging this information, the One Click Mortgages product has the potential to achieve an average upfront commission of over $3,000 for each sale, in addition to an ongoing trail commission of approximately $800 per annum. This revenue opportunity significantly enhances the lifetime value of a customer, complementing the suite of financial and life admin products available on the One Click Life platform.
Managing Director of One Click Group, Mark Waller, said, “Monetising the product so quickly has been very positive, and we’re delighted with the number of mortgage applications we’re currently receiving through the platform. There is a significant revenue opportunity in our fast-growing user base to provide simple digital financial services capable of being used on a mobile phone.”
Being the broker, the Company needs expansions like these to put it over the edge and improve its financials. In Q3 FY23, the Company experienced a cash burn of $819,000, while its cash in hand stood at $1.8 million, a decrease from $2.7 million in Q2.
Currently, One Click Group offers live and monetised products such as One Click Tax, Mortgages, Wills, and Insurance, with additional offerings in the pipeline. This unique and scalable platform positions the Company for continued rapid growth, making it simple for people to get access to home loans.
Waller further noted, “Our focus is on continuing to grow user numbers on the One Click Life platform while monetising the products we have live and expanding the platform’s capabilities, continuously increasing revenue opportunities within our user base.”
With over 70,000 registered users and counting, One Click Life boasts an average customer age of 31, presenting an opportunity to offer multiple financial solutions to its demographic. Given the ongoing housing crisis, access to mortgages has become ever-so essential for consumers, and traditional banks are struggling to build the infrastructure to support it.
One Click Group plans to leverage its existing user base to market new products and continue helping Aussies access mortgages.
Alinda is a Business Reporter for The Sentiment
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