An Australian credit union has announced a new distribution deal with a home loan fintech to bolster its mortgage base.
Gateway Credit Union has today announced a partnership with start-up online mortgage finance platform LoanDolphin in a bid to expand its footprint in the mortgage market.
The partnership will see LoanDolphin customers gain access to a range of Gateway’s home loan products through the online platform.
Gateway’s senior manager of strategic alliances Richard Wong said the partnership will allow Gateway to stay competitive and broaden its market reach through a complementary channel to its broker market.
“New technology has certainly shifted the mortgage ecosystem. Customer demands and needs have changed dramatically and as a result we’ve seen a number of new online mortgage finance platforms emerge and begin to disrupt the industry,” Mr Wong said.
“As an affiliated lender for LoanDolphin we’re able to tap into this disruption and interact with customers in a way that suits them best.”
LoanDolphin CEO and co-founder Ranin Mendis said the fintech is pleased to expand its stable of lenders.
“Providing customers with the best offers and rates on their home loans is at the forefront of what we do. We’re looking forward to having Gateway on board to help us achieve this.”
Mr Wong said Gateway will continue to collaborate with fintech companies in a bid to foster innovation.
“Developing mutually beneficial relationships with start-ups in the fintech space is one way for us to keep our business competitive while continuing to deliver the best outcomes and experience for our members,” he said.
“Helping to foster innovation in the industry is a win-win for both customers and organisations.
“We’re always open to seeing what new market entrants have to offer if it means improving products and services for the benefit of our members.”
However, not all credit unions see the value in new fintech mortgage platforms.
CUA chief executive Rob Goudswaard said traditional mortgage brokers have been good for the business, but new online players are not part of the group’s future distribution strategy.
Mr Goudswaard, who spent 30 years at ANZ before taking the top job at CUA last year, said the mutual lender had looked at alternative broker models, such as Joust.
“I think they are price driven. You will lose customers on price. I’m not convinced it is the market we want,” he said.
“If you look at Joust, it is not clear to me that they are customers who would become your customers because of your service proposition. They are there because you are the lowest price. So we are not interested,” he said.
Joust is an online home loan platform that competes with traditional mortgage brokers by allowing lenders to bid for a customer's mortgage. The platform currently has a panel of 10 lenders, seven of which are mutuals: Australian Unity, Beyond Bank, BankVic, Gateway Credit Union, People's Choice Credit Union, IMB Bank and Victorian Teachers Mutual Bank.
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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