An Australian online lender is leveraging its technology platform to provide brokers with a simple solution to offer personal loans to their clients.
RateSetter’s new online process, RateEstimate, provides the broker with a loan rate personalised to their customer.
“The broker has a choice – they can either complete the RateEstimate form online on behalf of the customer, or they can send the customer a link to a unique co-branded website for the customer to complete the form,” RateSetter CEO Daniel Foggo told The Adviser.
“Thereafter, the broker shouldn't actually need to do anything. We work directly with the customer to complete an application. We notify the broker when the loan has been approved and also when it has been drawn.”
Mr Foggo said the online platform will help enhance the broker/client relationship.
“We are giving brokers a new solution for their customers,” he said. “By offering a personal loan, the broker remains relevant to the customer in another area of their life – it’s not just their mortgage. This also means the customer is not stepping away to another channel where the broker might lose their relationship with the customer,” he said.
“More importantly, the broker can show they are delivering value to their customer – the customer knows they are getting a better rate than they would get from anywhere else, so that reflects well on the broker.”
The move by RateSetter comes after PricewaterhouseCoopers said the use of algorithms to personal loan structures could reshape the Australian personal lending market.
Last week, PwC venture lead Katherine Maree Pace noted credit-rating algorithms leverage personal data and behavioural economics to deliver a more sophisticated segmentation of a traditionally ‘blanketed’ middle market.
“This is a fantastic plus for Australians seeking personal loans as algorithm intelligence moves us towards a future of personalised interest rates, specific to a person’s unique profile," Ms Maree Pace said.
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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