Joust Innovation in Third-Party Lending

What do you think it means to be innovative in the third-party lending space?

Innovation in the third-party lending space must ultimately lead to better outcomes for the customer. If businesses are not customer-centric in the way they innovate, then it becomes change and technology for the sake of it.

Innovation, and the use of digital technologies, need to make the process of sourcing a new mortgage simpler, easier, and more cost effective than ever before. If lenders can use innovation to provide better service - and financial outcomes - for the customer, then they will also ultimately be growing their businesses and the third-party lending industry in general. Innovation is about continuous improvement, and the evolution of the third-party lending industry.

How do you aim to achieve this with Joust?

Research shows that nine in 10 Aussies go straight to digital channels when they’re ready to refinance. The same research also shows that, when searching online, consumers will consider between two and three different suppliers, and make their decision within a week.

Joust is about providing more effective ways for brokers and consumers to connect online and ensuring that online search process for a new home loan results in the best outcome for the consumer, and the most cost-effective customer acquisition for a broker.

As a two-sided marketplace our platforms and use of data and technology allows brokers and clients to be more effectively matched, ultimately providing the customer with a better deal on their home loan, and the broker a more effective way to grow their business. 

What kind of innovative tools/tech do you offer brokers and how do brokers access them?

The Joust platform provides brokers the ability use a range of data points and customer profile parameters to effectively customise their service offering and target the right customers for their business. The way the two Joust products on the platform analyse customer’s profiles and loan requirements means that brokers can more quickly and easily offer them products suited to their needs and have a highly meaningful connection straight away.

The Joust Instant Match platform uses algorithmic matching to ensure the right products from a broker are presented to the customer profiles. Brokers will understand the client’s needs, profile and bet-fit product before they even make the call to connect. This is an extremely powerful advantage for brokers looking to growth their business and transition from traditional offline customer acquisition sources – which are drying up – to more effective digital channels.

Effective business growth is all about having the right insights and intelligence available and putting those insights to work in the right way. The Joust Live Auction platform provides brokers with the right data – location, loan size, LVR, salary, credit score, etc. - about a customer to allow them to target and bid for the profiles that fit their growth needs. It allows them to have the right conversation with the right client at the right time in their home loan journey.

Can you give us a real-life example of how Joust's platform helps innovate the home loan experience for brokers and their customers?

Joust has helped thousands of customers through its innovative platform and use of data. A recent example is of a customer who, at the age of 64, and after going through a separation, used Joust to source a new lender. His existing bank could not meet his needs. Our platform matched him with a lender that was able to find a solution, and eventually save his house. This was a great example of a customer with complex needs using our platform for a better outcome, and a broker who was immediately able to identify a specific opportunity to grow their business. Better outcomes for the customer and the broker.

Why are you investing in innovation in home lending?

The path to purchase for consumers to secure the right new home loan that best suits their needs is often long and complex. Similarly, third-party lending industry requires new ways of building their sales funnel and pipeline and planning for business sustainably.

Joust is investing in home lending to solve both these problems, and to ensure consumers get better outcomes and brokers are more effectively able to grow their businesses.

Our research shows that only one in 10 brokers uses digital channels as a core part of their customer acquisition strategies. While brokers see value in digital marketing, our research shows, the majority invest in it irregularly, and that they don’t have the knowledge or capability to do so. Joust wants to solve those industry-wide customer acquisition problems.

Home finance lending - and in particular the third-party channel - has for too long relied on traditional/offline forms of customer connection. This has resulted in very inefficient ways for practitioners to grow their business.  Joust’s digital marketing capabilities present a far more sophisticated approach to building a regular flow of new customers. 

The industry is constantly evolving, and younger, more tech-savvy operators are beginning to realise they can build a thriving business around smart digital marketing platforms like Joust.