Sherlok partners with major aggregator

The fintech, which uses artificial intelligence (AI) to help brokers retain customers by predicting who is likely to leave based on their current interest rates (and automates the repricing process), will now be able to integrate into AFG’s technology stack.

The partnership aims to help to deliver “a better experience” for AFG brokers to onboard, transfer data and start repricing for customers. 

It will also provide AFG brokers with a 21-day free trial and discounted pricing for monthly Sherlok subscriptions on an ongoing basis, according to the aggregation group. 

The first AFG brokers are being onboarded this month with a full roll-out to all AFG brokers expected in “mid-late September”.

Speaking of the partnership, Mark Hewitt, general manager, industry and partnerships, said: “Sherlok’s ability to automate the repricing process complements and builds on AFG’s Red Alert program which also uses AI to predict which clients are likely to leave.

“A big part of the AFG technology strategy is to transition away from a walled garden approach and make it easier for our brokers to choose the technology and tools they feel are right for their business.

“Between AFG Red Alerts and Sherlok, AFG brokers have access to a fantastic companion set of tools to retain and offer their customers a time-appropriate service.”

AFG has reportedly undertaken a “comprehensive security review” of Sherlok’s privacy, data security, systems & IT architecture and reviewed Sherlok’s penetration testing so that AFG brokers can “have confidence that Sherlok has passed AFG’s current security standards,” Mr Hewitt said.

Adam Grocke, Sherlok founder and chief executive, stated Sherlok was “incredibly excited” to partner with AFG. 

“It’s a fundamental steppingstone in our mission to help brokers retain more customers. With rising interest rates and low fixed rates expiring over the next one to three years, brokers need to be proactive and keep customers on competitive rates or risk losing them,” he said.

“Full credit goes to AFG, which is willing to work with companies like Sherlok to ensure their brokers have access to various alternative digital services”. 

The ability for brokers to be able to refinance their clients in a timely and effective manner is crucial, as it comes at a time when refinance activity is expected to only increase further. 

Following the Reserve Bank of Australia’s move to increase the cash rate by 50 bps this month, several figureheads in the industry have flagged that brokers are receiving more inquiries from mortgage holders about refinancing.

Speaking to The Adviser earlier this month, Mr Grocke said: “The reality is that seven of 10 loans that are refinanced will be refinanced by a broker from a broker, because brokers now write 70 per cent of loans across Australia...

“2022, 2023 and 2024 will see refinancing activity double, maybe even triple, as clients roll off ultra-low fixed rates... in some cases moving from 1.69 per cent to over 4 per cent.

“Repricing existing clients should be the first call to action to offset the rate rises and reduce client churn. It’s a win for the client, broker and lender. Then the brokers should consider refinancing if the existing lender doesn’t want to play ball to keep the client.”

[Related: Sherlok secures access to open banking data]