One Big Switch or big flop

Hey all,

I just got a letter from the One Big Switch, apparently they do not have any offers for the 40,000plus borrowers which applied and it may take up to 7 weeks for an offer to be generated.

I don't believe any lenders or banks are going to touch them.

What do you think?
 
Part of the problem is that there isn't any lender who is geared up to cope with the potential volume of business. It would be damaging if a particular lender went from a 1-2 week application turnaround to a 12 week turnaround. And then the outgoing lender client retention teams will kill a lot of outgoing deals anyway...

There'll be a lot of hopefuls in the pool that the banks won't want to touch so I imagine it will take ages to sort the good from the bad. Lenders will only want to dedicate the resources to the 5 star borrowers.

The nice thing for us brokers is a lot of 4 star borrowers will be disapointed, probably for very basic reasons. These people might then be thinking about alternatives and getting some real advice.

It could also be interesting in that ASIC will be looking to see if there's any clear violations of the of the new credit laws. I'd suggest that strictly speaking there are quite a few problems with it, but ASIC won't want to be seen as coming down to hard on Choice. On the other hand the can't outright ignore any obvious violations of the new laws as every other credit provider will jump up and down about it and ASIC don't want precidents of leniency set either.

I don't think it will turn out the way most people hope, but it'll be really interesting to watch.
 
I recall speaking to a major lender a few years ago and they said they get about 500 new applications per day. Imagine getting 40,000 applications at once! A logistical nightmare.
 
What a balls up. I'd have thought Choice or whoever would have investigated the possibilities with some institutions first. It looked like a naive idea at the start and now this is confirmed. :(
 
I tried to do this about 5 years ago with investors that paid interest in advance. Much smaller numbers but most lenders wouldn't negotiate on bulk discounts. NAB was the only one at the time but couldn't hold the fixed rate and it moved.

It was a failure. Banks were never going to accept it. They have much more to lose than to gain. They make too much money off their back book. Great PR though.
 
I am in process of doing one BIG deal with a lender for full 1% off new business. I even had to suit up to meet some people to get the ball rolling. It is secured deal now but I have a media embargo on it till the nuts and bolts are finalised. It is something about generating enquiry but, harder to get a lender to agree to a discount.

I plan to d it on finance, then insurance, then cars or whatever can have a collective agreement on.

I applause them of their efforts personally.
 
Hi Kane,

Like I mentioned at Spank Your Bank, in our email update, we said discussions could take several weeks, not seven. Here’s the text of the email:

“We are working night and day to try and secure a discount, but the reality is these discussions could take several weeks; we will keep you in the loop the whole way”
 
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a brilliant marketing ploy that lacks substance. It looks like they were caught off guard with how many people showed interest. I am very surprised choice is lending their name and receiving a commission on this....
 
Im a paid CHOICE member

I had to chuckle when I got this yesty


Dear Member,

CHOICE is running a survey about Banking Satisfaction for an upcoming article and we would like to invite you take part.

The survey should take approximately 10-20 minutes to complete, depending on how many different types of banking products you have (e.g. loans, accounts, credit cards). Please allow yourself sufficient time to complete the survey in one sitting and DO NOT close the survey page during the survey as it will require recommencement from the start again.


ta
rolf
 
LOL - this defeats the purpose of the so call "ONE big switch" ahhaha so it will end up coming back to us brokers anyway + most likely we would either recommend to stay with their exiting bank and if a swap is recommended it most likely won't be Resimac or first mac that's for sure....


Regards
Michael
 
LOL - this defeats the purpose of the so call "ONE big switch" ahhaha so it will end up coming back to us brokers anyway + most likely we would either recommend to stay with their exiting bank and if a swap is recommended it most likely won't be Resimac or first mac that's for sure....

Regards
Michael

I don't see any brokers wanting to split their commissions back to Choice either!
 
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