Salaried individuals no longer need to supply bank statements when applying for bonds at FNB, Absa and Nedbank, as these banks can now obtain applicants’ bank statements via secure electronic enablement from participating Document Exchange Association (DEA) banks.
Bond applicants will be required to sign consent forms authorising their banks to release the information. If they aren’t willing to give the necessary consent they will be required to supply bank statements to accompany the application, as before, says bond originator Kevin Harvey of Prime Properties Finance.
Harvey believes that this change will herald a number of benefits, and in particular a significant reduction in the fraud risks associated with paper submissions. Additional benefits, according to Harvey, include a reduction in costs associated with obtaining and submitting paper documents; improved protection of the client’s confidential information; enhanced service levels and faster turnaround times on bond applications.