BBVA USA customers can now apply for a home equity digital line of credit directly on the company's website.
The technology was developed by Prosper, an online consumer credit marketplace based in San Francisco. BBVA of Birmingham, Alabama, is the first banking partner to use Prosper's technology on its own website. Although the offering was officially announced on Tuesday, BBVA began offering these digital HELOCs to customers in Alabama, Arizona, Florida, Colorado and New Mexico in September.
Since the HELOC platform was launched, "the number of customers completing online applications has improved significantly," said Murat Kalkan, Head of Mortgage Banking at BBVA USA.
The two companies first partnered in 2019, but BBVA customers with $ 100.9 billion in assets could only apply for HELOCs online through Prosper's website.
"Home improvement consumer spending has increased over the past six months as people spend more time at home during the pandemic," said David Kimball, CEO of Prosper, in a press release. "A home equity line of credit is a great option for financing a large project because it offers flexibility and access to low rates."
Based on early results, including a test conducted in July, BBVA estimates that Prosper's service enables HELOCs to close 14 days faster on average than applications submitted on other channels.
Other benefits, according to the two companies, are immediate prequalification, a dedicated customer service team that can answer questions about HELOCs, and the ability to upload electronic documentation.
"We are excited to expand our relationship with Prosper by using the digital platform for our online HELOC application process, as we both firmly believe that digital can bring convenience, speed and efficiency to customers' banking experiences," said Murat Kalkan , BBVA USA's head of mortgage banking, said in the press release.
"Since we launched our HELOC application with Prosper technology in early September, the number of customers filling out the online application has improved significantly," said Kalkan.