Two Australian fintechs have merged, combining their respective strengths to establish a “revolutionary” online home loan auction platform.
The digital marketplace formed as a result of Joust and LoanDolphin’s partnership connects home loan customers directly with lenders and brokers who bid for the customer with the best home loan rate; according to the group, the “reverse auction model” saves borrowers time and money and enables lenders to access customers fairly and on the same terms.
Both companies were founded in 2015 by ex-banking executives, with previous experience at Westpac, CBA, NAB, St George and BT, and together have processed $3.3bn of loan opportunities and reduced the average customer’s interest rate by 0.74%.
The merged company will move forward under the banner of Joust and will be headed by CEO Carl Hammerschmidt who boasts 20 years’ experience in digital transformation, growth and strategy for media businesses such as SBS, Nine and Bauer, and state government.
“Both Joust and LoanDolphin have played an important role in creating new and innovative ways for Australians to get a great deal on their home loan. The combination of our technology, data, and people, best positions Joust to deliver exciting new opportunities and innovations to the home loan market,” Hammerschmidt said.
The first release for the newly merged businesses is ‘Joust Instant Match’, which processes customer details and instantly provides them with the most-competitive loan options.
“With the release of Instant Match, we are able to service customers who are looking for an immediate solution based on suitability, while the Joust Marketplace will offer a more comprehensive and competitive process,” explained Hammerschmidt.
“Through both products, lenders will also be able to better target customers based on their needs such as demographic, geographic and loan type.
“Now is the perfect time for the merger, with record low rates meaning customers can get a really good deal on their home loans using a competitive, transparent platform.”