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Fintech company offers brokers lead generation opportunites

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Australian Broker | 04 Mar 2016, 08:00 AM Agree 0
A new fintech company which has created an online marketplace for home loans says it offers brokers strong lead generation opportunities
  • Simon Wood | 04 Mar 2016, 09:29 AM Agree 0
    Haha - "Your friend in a sea of sharks". Misguided branding aside, this seems innovative but it's not a new idea (flongle.com.au has been around a while, I'm sure there are others) and this industry needs a lot more tech investment before somebody seriously disrupts our market (ie. Quicken Loans, Xero etc).

    But I would wish any broker good luck building a business that is based on long term client relationships when from the outset these broker-client relationships are based 100% on rates (and a LinkedIn style profile). A broker's value proposition should be about service, choice, professional advice, planning, goal setting, offering a network of like-minded alliance partners etc (and best rates are just a "given").

    I'd have no intention of using LoanDolphin as A) these clients are less likely to appreciate what a broker really does (ie. any of the above), and B) a client who believes the industry is full of sharks is unlikely to form a trusting relationship with any broker.

    I also find it puzzling how brokers can participate in this and bid with a "rate" which is presumably offered by a panel lender (which infers a preliminary assessment has been completed), without holding any significant client data.
  • Ken | 04 Mar 2016, 10:20 AM Agree 0
    The more things change the more things stay the same!

    12 years ago we had more than one site offering leads to brokers at a price from $5 to $50 depending on age and request. it was a great way to get started and I still have clients I "purchased" through the electronic lead generation sites.

    I am not sure that we come full circle as the information out there is more widespread and bidding on rate without knowing a clients circumstances would be outside NCCP requirements.
  • Jake C | 02 Jan 2018, 02:56 AM Agree 0
    Pretty funny that the people posting here seem to be loan brokers. I challenge the writers here to demonstrate the value they add when the underlying loan documentation is pretty much standard stuff. Anecdotal comments don't count. The vast majority of brokers, in my opinion, are in for the quick kill. Get the deal done, collect the commission and move on. You only eat what you kill and hand-holding is not a profitable activity. The plain fact is that the ultimate lender dictates terms and conditions off of a menu of options.

    So if Ken and Simon Wood would let me know what the broker value proposition is, I would appreciate it very much. But I think that this so-called loan generation models would be more of interest to the borrower if the mortgage brokers were cut out. Banks are aware that they compete with brokers, hence when I call a branch, the bank offers me the same pricing anyway.

    The banks use brokers to outsource mortgage origination at a fraction of the cost of their in-house resources. Hence the growth. Tell me if I am wrong.
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