Australia: Fintechs: Greater Awareness Needed

As a non-traditional banking method, Fintech or “financial technology” companies offer consumers a different way of banking. In contrast to traditional forms of banking, Fintechs utilise financial technology to deliver products and services more efficiently.

According to RFi Group data, however, only 42% of respondents are aware that Fintech companies exist in Australia. An Adelaide Fintech, Joust, for instance, eliminates fees to mortgage brokers by connecting home borrowers with lenders directly.

Co-founder and CEO of Joust, Mark Bevan states, “Banks pay over $2 billion a year in commissions to mortgage brokers for the delivery of home loan borrowers. We are the solution for home loan consumers that want to circumvent the dated broker model. Our model is cheaper, simpler and more transparent”.

While Joust’s home lending services may be an attractive option for consumers interested in securing a home loan, it appears far more work needs to be done to boost awareness for Fintechs as a financial service.

The fact that Joust provides a cost-effective method to home lending not widely known to consumers, invites questioning into the effectiveness of Fintechs especially in our Australian context.

For it can be said consumers are more likely to resort to traditional forms of banking if they are unaware of the benefits attached to Fintechs.

Indeed, Joust represents an example of an Australian Fintech which offers consumers an efficient alternative to receiving a home loan by taking out the ‘middleman’, but how is one to utilise such benefits if only a small portion of the population is aware of Fintechs?

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