Joust has chosen to play in a very exciting arena. Fintech and digital disruption is not for the faint hearted. When Joust began its journey, we knew we would be in a race to get to market first. Every month we learned about a new business model that may or may not be a competitive threat to Joust.
Like a lot of businesses, we formalised a process of analysing and monitoring potential alternative business models – both in Australia and overseas. Thankfully, without exception, we know that Joust is truly unique.
Communicating the Joust difference
The big challenge for us is communicating the distinction between Joust and other players. We frequently see excellent advertising, editorial and digital marketing that suggests that digital disruption of the home loan market has already arrived. But let’s stop here for a moment.
The evolution of the home loan market in Australia over the last 40 years is a structured one. Prior to deregulation in the 1980’s, a consumer would need to save at least a 20% deposit with a bank – and over a consistent period of at least 12 months before even thinking about an appointment with the bank manager. Deregulation led to a bit of breathing space. We saw the emergence of insured loans where borrowers didn’t need to provide the full 20% equity.
As local bank branches began to centralise in the 1990’s, staffing and service levels began to reduce and we saw mortgage brokers emerge with a better service offering than banks. Mortgage brokers seemed like they were working on the consumers’ behalf, for example loan documents were often signed on the kitchen table in the evening. As banks and other lenders tried to innovate, the home loan choices became more complex. And confusion followed…
Confusion played into the hands of mortgage brokers
This confusion has led to the market share of home loan settlements originated by brokers increasing to over 50% in Australia. A more recent phenomenon in the home loan market is the “comparison site”. This model is particularly successful for hotels, flights and insurance.
We do more and more of our research online – and this includes financial services products. You, the consumer, are now more confident than ever online. However, the limitation of comparison sites is the endless complexity and confusion – and the process doesn’t provide anything other than static data and a button to click to go to a service providers’ site.
You don’t need to review sixteen different product variations or packages from 31 different lenders.
Joust isn’t static… we’re live and dynamic
Enter Joust. Joust has successfully negotiated with all of its partner lenders to offer a normalised variable rate home loan for owner-occupier consumers with a good credit rating and are considered prime borrowers. What this means is that you have a minimum of 20% equity in your home. With Joust, you can easily determine the best rate bid. No more confusion for consumers with straightforward home loan needs.
A number of new “Fintech” or digital disruption players suggest that they’re running an auction or bidding process. But the reality is, they are merely the collation of a handful of standard or discounted package offers from their panel of lenders – presented to consumers in no particular order or with a “recommendation” from an intermediary.
Joust creates a true online market place where lenders bid live, against each other, with total transparency – directly to your device and in a timeframe of your choosing. No standard, carded rates or standard broker rates, but a specific rate that the lenders are prepared to bid for your individual business.
And who doesn’t love a bit of competitive tension... The lenders can see if they have been out bid, so they can bid again (and again) if they wish. And you get the best outcome. You win.
Joust is like e-Bay, in reverse
All from the comfort of your lounge chair, on the bus to work, or in a coffee shop, you’ll always win with Joust. No appointments, no filling out forms, no annoying pestering phone calls… Just a panel of banks and lenders chasing your business for exactly what it’s worth.
To see if Joust is for you, check out www.joustnow.com.au and give it a go. Be part of the best thing to happen to home loans since deregulation.
Mark Bevan, Joust Managing Director