Newly launched online personal final hub provider Shroogle has further distanced itself from current market providers by aligning with the recommendations of the Hayne Royal Commission’s fee for service charging.
Shroogle founder and Head of Product, Justin Quay said today Shroogle had adopted the Hayne’s recommendation for greater transparency and consistency and rejected the commission charging model but took it one step further with by offering a low fixed fee.
“This removes conflicts such as product manufacturer bias and the incentive to sell larger loans to generate more sales commission,” said Mr. Quay.
“Our model makes for a value proposition which is highly compelling for people buying a home, borrowing or refinancing. We are ultra-customer-centric in our approach.”
By way of examples:
Customers buying a home and borrowing $500k will receive $1,625 in cashback commission on settlement of their loan. They will also receive more than $14,000 in cashback commissions over the life of the loan, should the loan be repaid over a 30-year term. These numbers are after Shroogle has deducted its low fixed fees. At approximately two-months’ pay at the average annual wage, this is a significant change.
Customers refinancing a home will benefit from the same as above, but there is a string competition from lenders seeking to attract new customers. Lenders are currently offering $1,500 to $3,500 to attract new customers to refinance and bring their business over. This can result in additional upfront cashback, depending of course on the amount refinanced. For example, $1m refinanced with some lenders would generate over $8,000 in total upfront cashback from Shroogle and the Lender, plus more than $30,000 over the life of the loan.
Mr. Quay said these numbers are ‘game changing’ for consumers.
The Melbourne-based fintech company Shroogle recently launched the first of a broad range of online financial services to provide increased access to comprehensive financial advice and related services.
Its credit service for home loans provides applicants with access to a panel of over 20 lenders, backed by professional guidance in a high quality, objective advice solution.
Shroogle has been acknowledged by financial institutions as the ‘most comprehensive digital advice solution for personal-financial-services’.It is owned by Complii Fintech Solutions Ltd, based in Sydney.
Shroogle has spent more than $6 million over four years in developing its concept to offer comprehensive personalised financial advice and related services.
Shroogle will be launching a number of other financial services modules for strategic and product-related advice, including life insurance, superannuation, investment ownership, investment selection, estate planning, social security, income tax returns and budgeting.
“We are completely transforming the way consumers seek financial advice and related services,” said Mr. Quay. “Making high-quality, personalised and objective advice highly accessible to mainstream Australians at a fraction of the cost is what drives us. This is a truly valid response to industry reports conducted by ASIC and the findings of the Hayne Royal Commission.
“Our approach is in line with the Royal Commission and we are doing this using propriety technology that eliminates overhead, maintains a high degree of quality control and reduces contact time.”