AVM volumes picking up

"From the second half of 2008 when volumes were quite depressed, compared to today, we would be conducting double the volume of transactions, and we would have no difficulty doubling it again," said Andrew Robertson, chief executive officer at ValEx.

Current ValEx volumes are around 400,000 per annum, around 1600 to 1700 per day, with Robertson adding that 75 to 80 per cent are full valuations, with the remainder desktops, with these percentage allocations little changed for the past two years.

"At this point in time we are not providing, but do have the capability to provide, AVMs, but up to date we have found lenders that will use an AVM will get that themselves.

"The model for VaLex has always been a platform, so we are not the service provider, so whether it's a full valuation from a valuer or a desktop, or an AVM, we manage the process for the client and source the assessment type from either a panel valuer or an existing service provider."

RP Data announced a takeover of ValEx last month, along with the VMS division of Sandstone Technologies, with the acquisition currently under ACCC review. Robertson confirmed that ValEx would not be restricted to just using the RP Data electronic valuation types should full ACCC approval be received.

"VaLex will continue to offer all AVM, desktop products, and not just RP Data's. The concept is that it's an open platform and customer focused, so if any bank (lender) wants to use an AVM from any other provider than RP Data, then they will be absolutely free to do that. And then we will be looking to put the right connectivity between those suppliers and the VaLex platform in place."

With the ValEx system being web based, Robertson said the system is scalable to handle more clients.

"As the volumes grow all we really need to do is increase the number of servers and database capacity, which is relatively easily done."

Due to the scalability, Robertson said ValEx is actively looking to bring new clients on board. Adding volume actually improves the ValEx system.

"The ValEx system actually works better the more volume it has, particularly in the area of compliance tools with the ability to run data to check the accuracy of valuations. The more data you have, the greater your capability in these areas."

Commonwealth Bank is by far the biggest ValEx client, with CBA's subsidiary BankWest also now using the service.

The timeline for adding a new client to the ValEx system varies, generally depending on volume.

"We have actually put a new client on as quickly as one month, but it depends on trials. Some lenders may want to run a pilot in one state, or trial different systems and make an assessment."