BBVA USA, the U.S. subsidiary of Madrid-based BBVA, today announced it is offering a digital Home Equity Line of Credit (HELOC) through its website, powered by Prosper, a leading online marketplace for consumer loans.
The announcement comes a year after the two collaborated on and launched a digital HELOC solution that provided customers the ability to complete an online application in minutes and receive instant pre-qualification. Early results already indicate that the digital solution is helping BBVA close HELOCs 14 days faster on average when compared to the Bank’s own turn times on applications submitted in other channels.
This announcement makes BBVA the first bank partner to use Prosper’s technology as part of its own website. Customers have been using the digital application for over a year through Prosper’s website with BBVA as its exclusive bank partner in Alabama, Texas, Florida, New Mexico, Colorado and Arizona.
“We are excited to expand our relationship with Prosper by using their digital platform to power our online HELOC application process, as we both strongly believe that digital can lend convenience, speed and efficiency to customers’ banking experiences,” said BBVA USA Head of Mortgage Banking Murat Kalkan. “Customers’ expectations are continuously being shaped by faster delivery and more convenience like they experience in other industries, so naturally they demand the same from financial services. This partnership is well aligned with the core of our strategy, which aims to meet rapidly evolving customer expectations. Now, more than ever, customers can quickly and efficiently tap into the equity they have in their homes, which can provide much needed peace-of-mind knowing they have access to the money they may need for home improvements, debt consolidation or other major financial needs.”
“Consumer spending on home improvement has risen over the past six months as people spend more time at home during the pandemic. A home equity line of credit is a great option for financing a large project as it offers flexibility and access to low rates,” said David Kimball, CEO of Prosper. “With Prosper’s digital HELOC platform, it’s easier than ever to apply online, get an immediate offer, and secure a HELOC. We’re thrilled to extend our partnership with BBVA to now have our digital experience available to BBVA customers through their website.”
“The future of home equity lending is part of the race to better customer experience, so our partnership with Prosper and aspiring to provide a seamless experience to our customers in their HELOC applications is one of the core drivers of our strong growth in Home Equity business even as we see a lower overall production in the industry.” said BBVA USA Director of Home Equity Originations David Garcia Hernandez. “We are looking forward to unlocking the true potential of Home Equity through this platform.”
Key benefits of the HELOC platform include:
An online application that can be completed in minutes with instant offers and information about rate and prequalification status
Easy access to a dedicated client services team that can help users get immediate answers to their questions and understand the benefits of getting a HELOC
Electronic documentation uploads and disclosure delivery
Ability to apply from anywhere without the need to visit a branch
BBVA and Prosper began working together in 2019, knowing that each could leverage its own strength to make the process of applying and obtaining a HELOC quicker and easier. BBVA contributed its understanding and experience in equity lending, while Prosper lent its acumen in digital consumer lending and creating great customer experiences.
“We always say that consumers are the ones who benefit when banks and tech come together, and it’s something we regularly put into practice. Since our Prosper powered HELOC application launched in early September, we’ve seen a significant improvement in the number of customers who complete the online application, underscoring the power of technology to improve the customer experience,” Kalkan said. “And in a time where banks are increasingly pulling back on their HELOC offerings, for us to come together and make it available more broadly, more conveniently and more efficiently says something about our commitment to customers and their needs.”