$2bn of broker commissions in fintech’s crosshairs

An Australian fintech has set its sights on disrupting the dominance of the mortgage broking industry by appealing to the banks who it claims are keen to reduce the $2 billion they spend on broker commissions.

Adelaide-based online home loan platform Joust has distanced itself from its competitors in the fintech space, which has seen a flurry of mortgage disruptors in recent years.

“Joust is not a comparison site with a myriad of static rates. It is also not an online broker or aggregator. We are a revolutionary marketplace model for home loan customers and lenders,” Joust co-founder and CEO Mark Bevan said.

Joust is leveraging the negative press that the third-party channel has garnered over the last 12 months, driven by mainstream media coverage of the Productivity Commission’s draft report and the ongoing Hayne royal commission.

The group stated that it is “aiming to disrupt the mortgage broker channel under siege from the Hayne royal commission’s financial services inquiry”.

Mr Bevan believes that the banks are also looking for a way to reduce their distribution costs.

“Banks pay over $2 billion a year in commissions to mortgage brokers for the delivery of home loan borrowers. I know they want to pay less,” the CEO said.

However, while 2,100 customers have already used the service, “jousting” mortgages worth more than $1 billion, mortgage brokers remain the preferred channel for Australian borrowers.

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Source: $2bn of broker commissions in fintech’s crosshairs – The Adviser