Australia: Auction-style loan platform combines credit and optional social scores

Lodex, launched in early 2017, allows prospective personal loan borrowers to combine their credit and an optional ‘social score’ to look for better rates on an auction-style platform. Sharing their scores anonymously and without any additional fees, borrowers can set up an auction and receive bids from lenders on personal loans, car finance and home loans.

A large variety of lenders, as well as over 80 accredited mortgage brokers, have signed up, with Lodex looking to offer deposit products. 

"The social scoring system is unique in Australia, giving consumers a rating out of 1000 using 12,000 points of data collated from various aspects of their online life and is designed to give lenders more information and complement existing credit scores. It is hoped that the addition of the social score will allow those consumers who have previously struggled to access credit more options."

While there may be concerns about privacy and security of personal data, Michael Phillipou, co-founder and director of Lodex, says that is a new concept that has potential to add a lot of value to the loan application process. The model has already been used in overseas markets such as Singapore, India and Philippines.

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