Australian Broker forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Fintech platform enables consumers to broker loans

Notify me of new replies via email
Australian Broker | 30 May 2016, 07:00 AM Agree 0
A new fintech platform has launched which enables consumers to broker their own home loan online, but will it replace mortgage brokers?
  • MK | 30 May 2016, 04:03 PM Agree 0
    Brokers don’t usually offer consumers the opportunity or technology to be part of the transaction themselves because that's what there are there for - to provide the expertise and advice to the client and do the work on their behalf so they don't have to do it all themselves, particularly the time-poor.

    I'm all for advances in technology, but a couple of concerns here:

    How qualified or regulated are these 'home loan experts' consumers can speak to, since they are not being paid commissions will they be outsourced call centre employees with no qualifications?

    The 'filters and pre-decisions' applied by brokers before making a recommendation are based on experience, the client's circumstances and the NCCP requirement that the product not be unsuitable to the borrower. How does this platform get around this requirement? Consumers may not be knowledgeable enough to know what a suitable solution for them is, particularly the more complex investors who are also looking for long term strategy.

    Lastly, I don't appreciate the wording on the website - "We cover a wide range of major lenders in Australia, which means you get to see what's really available out there - not just the handful a broker will show you". This is accusing brokers of holding back options from clients. We've worked too hard, particularly in an increasingly difficult regulatory environment to be accused of cutting corners.
  • Annoyed Broker | 31 May 2016, 10:06 PM Agree 0
    I agree with the other poster. Weve all worked too hard to be accused of holding back options.

    Besides, how can they show impartial results when they are 80% owned by Westpac?
    • Annoyed consumer | 24 Jun 2016, 10:09 AM Agree 0
      Annoyed Broker, where does it say they are 80% owner by Westpac?!?! I can't find it anywhere.

      If that's true, how can they justify this statement "Turner said a need for transparency in the sector drove the creation of uno" when there is no disclosure of this anywhere?
      How is that going to help consumers if one of the biggest banks owns majority of it? Biased much?
  • Eric Handbury | 29 Jun 2016, 11:45 AM Agree 0
    So Uno charges no fees and accepts no commissions? Got it. Only 2 sources of income then. Either venture capital or they are getting kickbacks from the lenders. DYI loan services have been tried for years and have never worked. People want advise for the biggest financial decision of their lives. And what happens if the lender comes back with conditionals or knocks it back due to policy? So Uno will spend the time to get a deal over the line without charging a cent? Beyond me.

    Also, I think their 'advise' will be diluted to comply with NCCP. They will never actually recommend anything since doing so will force them to comply with NCCP. I can't see an investor using them, and I can't see a young couple buying a first home using them.
Post a reply