Before co-founding Joust, I worked for two of Australia’s largest banks – for a total of 31 years. Throughout that time, it was drummed into us that it was extremely difficult to compete on “product.” Anything new that was developed by one bank would quickly be replicated by another. The only true way to compete was on service… we were told.
But there were some notable exceptions. Commonwealth Bank had the Commsec business and product offering that most of its competitors couldn’t replicate – at least quickly. Westpac had an Insurance Premium Funding product that very few competitors sought to offer. However, on the whole, the idea that all major competitors having the same or similar products certainly held true.
Financial service products are commoditised.
New online market places and digital disrupters like Joust reinforce the fact that financial services products are generic and increasingly commoditised. A unique feature of the Joust platform is that our partner lenders have agreed to a “normalised” method of presenting their home loan products. On this basis, Joust successfully removes complexity and confusion for consumers… so that everyone can compare “apples with apples.”
What we predict at Joust is that the future of bank advertising will change. It’s going to be less about credit cards, award points and bundled products, with questionable features. Instead service, reputation, physical presence, convenience, and affiliation with the community will lead the way – the future battlegrounds for the hearts and minds of digital savvy consumers in Australia.
Keep an eye out for this trend and make sure you take advantage of the competitive tension, independence, and transparency that Joust offers.
To learn more about how Joust works, visit www.joustnow.com.au.
Mark Bevan, Joust Managing Director