'One Big Switch'

[our obsession]

Just catching up on ABC's AM stories, this maybe of interest to some:

Excerpt only:

PETER CAVE: Back in July, a new organisation calling itself One Big Switch put the call out to try to get 1,000 mortgage holders to switch lenders.

The idea was that a big group of people would be able to convince the lenders to give them a group discount.

1,600 people ended up approaching participating lenders for a better deal.

Now the organisation has moved on to electricity companies as well....

Report here:

One Big Switch




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[Rolf Latham]

Just catching up on ABC's AM stories, this maybe of interest to some:

Excerpt only:



Report here:

One Big Switch




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as far as I could tell the one big switch mortgage thing was one big flop.

more to the point, my personal belief it was one big con, with Choice not having done a moderate amount of research into the mechanics of what they were promoting.

I can say that with reasonable confidence, because after the 10s of thousands of respondents to the program, we arent seeing much yay I am so happy media

ta
rolf

 

[Aaron_C]

Wasn't there an article saying Choice now has an ACL and is doing mortgage broking now using that One Big Switch list as a database?

 

[our obsession]

as far as I could tell the one big switch mortgage thing was one big flop.

more to the point, my personal belief it was one big con, with Choice not having done a moderate amount of research into the mechanics of what they were promoting.

I can say that with reasonable confidence, because after the 10s of thousands of respondents to the program, we arent seeing much yay I am so happy media

ta
rolf

Interesting, I had a look around to see if I could confirm this..the flop is being denied:

http://www.brokernews.com.au/news/breaking-news/one-big-switch-success-rate-hits-1600/121213/

In the six months since One Big Switch launched its campaign to help borrowers lower their mortgages, 1,600 homeowners have secured a better deal.

One of the organisation’s co-founders, Lachlan Harris, told ABC News that many people who signed up months ago are still in the process of changing their mortgage.

The report follows a previous dispute regarding the success of the campaign. In November, One Big Switch denied media reports that only 1,000 of the 40,000 borrowers who signed up for the campaign had seen results from their involvement.

At the time, co-founder Paul Hunyor told attendees at a LIXI conference, “I’ve learned to believe nothing I read in the financial press, so no, those numbers are not quite right.”

..and:

One Big Switch faced widespread criticism from the broking industry. AFG’s general manager of sales and operations Mark Hewitt said the problem is that the campaign had failed to attract major lenders to its panel.

“The proposition would be laughable if they weren’t putting people’s property on the line,” he said.

Hewitt also countered statements made by representatives of the organization who reportedly called financial advice in Australia “crap”. According to Hewitt it was an unfair comment particularly since the group is not prepared to provide financial advice to its members..

Hard to say if it's sour grape propoganda from aspects of mortgage industry...or ?

 

[evand]

I think you need a bit more than that to say its a flop. Or a con.

I can say that with reasonable confidence, because after the 10s of thousands of respondents to the program, we arent seeing much yay I am so happy media

ta
rolf

 

[our obsession]

I would add I'm puzzled why it would threaten? the mortgage broking industry?

Some 'people power' of owner occupiers is certainly not 'my circumstances' for example, my relationship with my mortgage broker is rock solid, a part of my team that makes me a smarter, better investor. And my investing is complicated, I never particularly sought a loan 'just for it's interest rate'-investing is way more complicated than that.

But nice for people that seek to get themselves a beeter deal, whether it be finance or power (as in electricity). Smart thinking..

 

[Rolf Latham]

I think you need a bit more than that to say its a flop. Or a con.

You might be right, con is too strong.

Not exceedingly successful is probably a better description.

Over 40 000 registered...................1600 got some sort of deal, one would hope a better one. In round numbers that means 4 % of folks with a mortgage that registered were refinanced.

Yes, that could mean a whole lot of things

I could be wrong, but the whole basis of the concept was to take a big bunch of borrowers and go to say XYZ .......if we bring this business to you as a bunch, what will you do for us and the borrowers price wise.

I still have an issue with the concept of CHOICE getting involved in building a marketing database where they have no ( apparent) control over the end outcome........ but in the end, its their business

From some of the media press that was around, the second tier non bank lenders got a decent slice of the 1600.

I know a lot of people had an issue with the concept of CHOICE getting involved in building a marketing database where they have no ( apparent) control over the end outcome........

So if the idea was to build a marketing database, then yes, its a success.

But as a Group Buying power deal...........I dont buy it, pardon the pun.

If there was a really worthwhile and verifiable borrower outcome I suspect the media folks running that show would have trotted out the evidence to gear off.

BTW, the electricity idea, is much more suited to this concept, IMO mortgages never were.

ta

rolf

 

[Rolf Latham]

I would add I'm puzzled why it would threaten? the mortgage broking industry?

The competition doesnt bother anyone I dont believe.

I for one would not want a 4 % enquiry to settlement rate in my business , AND then share the weeny comm around with a bunch of others that generated the enquiry.


What appeared to be the issue ( in my perception) is that what was promised was never deliverable, either structurally, or "sensibly". That being a GROUP switch with thousands of borrowers moving to one or 3 lenders because they offered better pricing. Maybe I have that wrong.

Mortgages arent yet a consumer durable or a consumable like electricity, and making them look as such is a nice marketing idea, but ................implementation is somehting else.

ta
rolf

 

[Nathan]

I launched bigaussiedeal.com.au which was similar to that at similar time.

I didn't promote it heavily however I did get a big four to back 1% blanket discount off for the life of the loan.

The bank switch had heaps of applicants from what I remember but their offerings were very poor and didnt close them all.

P.s. I have no interest in being a broker and no time in the future would I become a broker.

 

[our obsession]

Rolf:

..implementation is something else.

Aha, gotchya. Electricity discount is one thing, relatively straightforward, loans-->people--->individual yo-yoing is another..it 'sounds better an idea than actually works out in reality'.

Even each persons mortgage loan to another person's circumstances can be quite different. Just as I am a different beast of an investor to another...

Too many variables perhaps.

That makes sense now.

Thankyou.

 

[Rolf Latham]

I launched bigaussiedeal.com.au

Im surprised the Aussie John's legal folk isnt chasing you

ta
rolf

 

[Nathan]

LOL, I have no affiliation to John or Aussie.

Basically this site will be used for other similar activities not home loan related.

 

[our obsession]

...on further thought, akin to herding cats.