Lending Disruption: HashChing vs Joust
Updated: Aug 27, 2018
Having noticed an influx in lending/banking alternatives vying for capital raising (through Crowd Source Funding), i thought it timely to deliver a brief overview of the two companies attempting to disrupt the Australian mortgage broking industry.
- HashChing (Failed Retail CSF Round)
Comparison websites such as ISelect and Finder dont offer you direct access to a verified mortgage broker to potentially obtain a better rate on your home loan. HashChing aims to find the right broker for you, to do the research on your behalf. The “I went with CBA because I’ve banked with them for the last 20 years” adage seems to be wearing off. More people want choice, and know they can access technology to do so. HashChing comes in the form of a website and an App, it allows you to compare mortgage brokers, their experience and areas of expertise.
Key features of HashChing Include:
Ability to view pre negotiated home loan deals
Access to 80+ lenders in the marketplace
Face to face in-person meetings with mortgage brokers
A ratings review system from other borrowers
Access to speciality financing solutions
All of these points are lacking in the majority of pre-existing mortgage broker comparison websites.
Unfortunately the funding round offered through Equitise was unsuccessful and subsequently refunded to all retail investors. With HashChing only reaching 30% of its minimum investment amount, one could question if their product and service offering is different enough to pre-existing services to attract investors. To view the overview of the failed raising offer you can visit: https://equitise.com/offer/regular/hashching-1?utm_source=website&utm_medium=blog&utm_campaign=Hashching%20blog&utm_term=Founder%20interview&utm_content=Hashching%20Founder%20interview#business-model
Joust (Capital Raising Currently Open)
A company that does offer a new and unique way of obtaining a mortgage is Joust!
Joust aims to take the hassle out of going on various mortgage comparison websites and comparing lenders by getting lending institutions to effectively outbid or ‘Joust’ each other for the customers business in real time. Joust currently has 16 lenders on its platform, including a broker aggregator with access to the big lenders including CBA, ANZ, NAB and Macquarie. The evolving global environment of financial services towards ‘Open Banking’ is allowing for digitally savvy customers to utilise their data to their advantage. The recently released Deloitte Australia Mortgage Report (2018), highlights the ‘customer-in-control’ future of the mortgage broking industry, referencing Joust as a potential future player in the space.
The concept seems great in theory, however questions must be asked about the companies screening process and how much diligence is placed on background checks and compliance. You would hope that creating an open marketplace for banks to compete for customers does not come at the expense of appropriate background and credit history checks.
All in all the shift of power seen in the financial services industry is exciting, even more so as an investor. To get in early please visit: https://get-on.bid/au/j/O1WTT1CE