Can google shake up mortgage broking

They'll start small an a comparison website and be paid by participating lenders.

Think they can be a disruptive force?

Google could be your next mortgage broker
Google could be your next mortgage broker

 

There's always been sites that have ranked mortgages, insurances, credit cards, meerkats, etc.

Fact is - most people with multiple properties rank the rate down at like the 5th rung of the ladder in terms of priorities. Other things to do with the lender/loan are simply more important.

 

They might be great for comparing, but Google as Google, they won't ever have a human advising you on which loan and what structure to take. I go for a broker because I need human expertise, at least for now

 

When artificial intelligence can make decisions the way a human can, everybody should be worried.

Google would more likely take market share from other online lenders and the branches.

 

Three years ago Google hired a machine learning/artificial intelligence specialist (Ray Kurzwiel) to "work on new projects involving machine learning and language processing" with the medium-term goal of "bringing natural language understanding to Google".

We're only one or two property cycles away from the point at which our technology will make this possible.

 

Just another comparison site - certainly would be scary for those playing in that space though.

If you run a niche business playing into a market which isn't focusing on the bottom dollar - it's business as usual, if not swaying further in our favour.

As an example - with the APRA changes came through targeting investors, I had a number of brokers comment at functions that my business would no doubt be suffering. In reality, enquiry is up 20%+ due to lenders/price based brokers not being able to keep ahead of the market changes.

I really think as a broking business, saying your primary value is to sort rates lowest to highest is poor form.

 

No doubt it's coming. But machine learning to understand financial goals and personal aspiration will be a great challenge, not to mention stepping into financial regulation etc.

 

Well said

 

It's another comparison site - they've been around for years.

Totally agree with Rolf's post - there's more to this gig then showing a product comparison.

A product comparison site isn't going to suggest you use AMP because of their DUA with Genworth and no credit scoring - which works well for that $450 credit card default you had back in 2013.

Cheers

Jamie

 

Google says no...

 

Not sure that a comparison site will do much to replace brokers any more than it already has.

In saying that, i definitely think technology can definitely shake up this industry (and most) - there's a lot of power to it and some of what brokers do can be replaced with some very sophisticated technology/education. There'd be ways for people with deep pockets to make some serious waves in the market i believe. It may just mean the way brokers do business is completely different. We've seen that over the last decade anyway, but i see some scope for larger shake ups and increased competition as a result of technological advancements.

 

Perhaps technology can educate consumers with this type of thing in the future. Comparison sites won't that just flash a rate around, but one that incorporates policy niches and 'what to watch out' for can definitely be beneficial to consumers looking to DYI it. I imagine this type of platform may have the potential to shake up the industry as it does encroach on a brokers current value add (knowledge).

If a platform can get 100 top performing brokers to educate on individual lenders, compile that information and experience and create a program that matches appropriate lenders based on a priority index - it could change the way brokers do business. Back it up with some loan processing support and a customer service centre designed at hand holding, and you could create a DIY service. Add in a trial rebate of some form to create a competitive advantage of using the system and you now have a very potent service. There's quite a large market for this type of service already and a number of players in it to some degree, with variants of the above service.

Rolfs point about people though - i don't think computers/technology can ever remove the human side of things.