The “world’s first auction-style platform” for loans and deposits has launched, enabling consumers to tender their home loan needs to both brokers and lenders.
Australian fintech Lodex has launched a new online platform that enables borrowers to set up an auction for their home loans, car loans, personal loans (and eventually deposit/savings accounts, credit cards and short-term loans) on their smart device or computer.
After building their anonymous profile, which outlines the lending requirements, and accessing their credit score (via Experian) and social score (via Lenddo) — or “financial potential” for deposits — consumers can then post their loan or deposit requests and wait for offers to come in.
The scores aim to provide lenders and brokers with insights into their individual credit risk, without affecting consumers’ credit score.
All registered lenders and brokers can place indicative offers on the platform within four days.
The consumer, which uses the platform for free, then picks the most suitable deal.
According to co-founders and banking executives Michael Phillipou and Bill Kalpouzanis, Lodex is “the world’s first auction-style platform” that aims to create a “paradigm shift” in the loan process.
Speaking to The Adviser, Mr Phillipou said: “We’re entering exciting times for consumers, lenders and brokers alike. Lodex aims to support all sides in the marketplace. We’re encouraging innovation because it benefits everyone.”
The director elaborated: “From a broker’s perspective, it’s pretty straightforward… everyone is looking for business, everyone is looking for leads and the markets are moving digitally. So, if I’m a broker, I’d always be looking for opportunities to connect with consumers.
“From our perspective, what we’ve done through the platform is to enable a consumer to have significant power, and through that power using data and technology, enable them to get access to a marketplace where they want choice.”
Mr Phillipou, however, said that the platform is not purely focused on rate.
“The consumer can build a unique profile and set out a number of requirements based on what they are looking for,” the co-founder said.
“So, a broker or lender has a number of different attributes based on what the consumer is requesting that enables them to provide an indicative offer [for example, brokers could theoretically provide sub-prime offers via their specialist lender accreditations]. It’s obviously only indicative because any interaction is subject to responsible lending and these brokers and lenders still need to go through their respective steps in order to comply with their responsible lending obligations to make sure it is still suitable.”
The platform is already looking at launching into overseas markets, particularly South East Asia and Europe, which have similar distribution and regulatory frameworks.
The Lodex Advisory Board includes chairman Andrew McEvoy, a former executive at Fairfax Media and managing director of Tourism Australia; marketing and advertising adviser Sean Cummins, the global CEO of Cummins and Partners; strategy adviser Kimberly Gire, a former CFO of retail & business bank at Westpac; and strategy adviser Francesco Placanica, the former CTO of Commonwealth Bank.