The Bank of Montreal has launched a mobile loan application tool for its Canadian customers.

Brett Pitts, BMO’s chief digital officer, told Bank Innovation the product rollout was a response to customer demand. “Customers were looking for a solution that would simplify the process and provide them with a real-time decision,” he said.

BMO, like other large banks, is looking to drive more core banking functions away from the branch to mobile devices, and the new smartphone loan application tool is another step along this path. In a similar move, Bank of America has started issuing digital debit cards instantly from its app in response to greater openness among customers to apply for debit cards online. 

Within BMO’s digital loan application tool, customers can apply for loans of up to CA $25,000 ($19,000) based on their employment and income sources. Harris said the decision process takes a few seconds and customers can access funds the next business day.

BMO’s digital loan application follows other large Canadian institutions enhancing their digital-only loan product offerings. For example, Scotiabank-owned Tangerine and CIBC’s Simplii Financial also allow customers to apply for loans online. The bank also faces competition from newer financial providers like Motusbank and lending marketplace Borrowell. The bank said BMO will differentiate in two primary ways: by not requiring physical signatures and the speed of the loan assessment process.

In rolling out a mobile-first loan application process, BMO is taking a page from startup lenders which tout efficiency and ease of user experience like Upstart and Lending Club. Meanwhile, Marcus by Goldman Sachs offers digital loans of up to $40,000. As big banks dominate the Canadian financial system, the race is on to provide as many digital tools as possible to fend off the effects of disruption from upstart fintech companies. BMO has also launched the ability to open bank accounts and apply for credit cards from a mobile device, capabilities that Pitts said have become table stakes offerings in the digital age.