Powered by MOMENTUM MEDIA
the adviser logo
Lender

Lender embraces digital mortgage distribution

by James Mitchell6 minute read

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.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

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.

Advertisement
Advertisement

“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.

[Related: Brokers writing 90% of mortgages for online platform]

Lender embraces digital mortgage distribution
handshake
TheAdviser logo
handshake

James Mitchell

James Mitchell

AUTHOR

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

Boomer home loans

New non-bank lender enters administration

Specialist lender Boomer Home Loans, named in reference to its target age demographic (Baby Boomers; those born in...

READ MORE
royden dvaz assetline capital ta fh2e1i

New national head of sales recruited at Assetline Capital

Royden D'Vaz, formerly head of distribution with the non-bank mortgage lender MKM, has been recruited as Assetline...

READ MORE
john maxwell oscar zhuo ta sthnmq

Uptick Marketing launches

Uptick Marketing (Uptick) aims to work in partnership with brokers to assist the third-party channel in “closing...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more