Bendigo confronts mortgage backlog
Bendigo and Adelaide Bank has allocated additional staff to deal with a backlog of mortgage applications that were delayed after the meltdown of the group's technology platforms last week.While media reporting of outages across the group's technology systems mostly focused on the inconvenience created for retail transaction customers, the operational breakdown triggered a more prolonged impact on mortgage brokers and their clients.Bendigo's internet and mobile banking systems were out of action for around 36 hours from Tuesday last week, but the seizure of the bank's mortgage broking platforms was not fixed until yesterday.Several mortgage broking firms told Banking Day that they were still waiting for the bank to confirm that it had received loan applications that had been lodged a week ago.Bendigo, which markets loans through brokers and mortgage managers under the Adelaide Bank brand, conceded that it had been unable to process loan documentation last week because of the protracted outage.Amanda James, the head of broker distribution, notified brokers on Saturday morning that the group would implement a software overhaul over the weekend aimed at resolving the malfunctioning loan processing platform."We are continuing to work on resolving system issues," James told brokers in a memo."A system fix will be implemented on Sunday morning which will hopefully allow us to resume operational activity as soon as possible."A bank spokesman confirmed on Monday that the remediation had been successful, but the company had enlisted more staff to deal with the backlog of loan applications."During the disruption, although applications were successfully accepted by Adelaide Bank, they were unable to be processed and we sincerely apologise for any impacted applications still pending approval," the spokesman said."Due to the resulting backlog, some minor delays are expected. "Adelaide Bank have staff rostered on extended hours to help clear the backlog of applications from brokers, mortgage managers and aggregators and we hope to resume normal service levels as soon as possible."The delayed processing of third party loan applications comes at an awkward time for the group following a 3.5 per cent slowdown in mortgage growth reported in the six months to the end December.Bendigo is under pressure to boost home loan activity in the current half to avert a sharp decline in full year net profit.First half profit declined more than 12 per cent as slowing loan volumes and tighter interest margins eroded operating returns.The slowdown in home loan activity has erased most of the share price premium that Bendigo has traditionally enjoyed over the country's other listed regional lender, Bank of Queensland.Bendigo scrip closed down six cents to $9.75 on Monday, while BoQ's share price rose three cents to $9.24.