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The newly formed partnership between a peer-to-peer (P2P) lender and a mortgage brokerage speaks to the growing trend of brokers turning to alternative lenders in the aftermath of the royal commission.
Through the new arrangement, Loan Market is set to distribute SocietyOne personal loans.
“Alternative lenders typically offer far simpler and faster application processes, more competitive rates, and greater access in general for many Australians needing credit. It’s encouraging to see such a market leading brokerage as Loan Market recognising the benefit of a SocietyOne personal loan for their customers,” said SocietyOne CEO Mark Jones.
SocietyOne recorded a 100% increase in monthly loan originations during the commission’s nine months of public hearings and showed seven consecutive months of record lending figures from the end of 2018 into 2019.
According to Jones, the company’s continued success is “more about [its products] than about the royal commission.”
While he acknowledged that the commission has made people more likely to consider non-bank lenders, he believes its SocietyOne’s commitment to getting customers a better deal than they could find at a bank that’s leading to their record loan figures.
“Society One has an industry-leading platform that gives brokers and customers certainty on interest rates and repayments without affecting customers’ credit scores. Customers should not be penalised for making educated decisions about their finances,” said SocietyOne head of broker distribution Greg Neilsen.
Loan Market Group attributed its interest in the partnership to the “level of consumer confidence” evident in SocietyOne’s personal loans.
“Reputable, personal loan solutions are growing in popularity and we're pleased to welcome SocietyOne to our lender panel as part of the answer to this demand,” said Sam White, founder and executive chairman of Loan Market Group.
Loan Market works with over 45 lenders and supports more than 650 brokers throughout Australia and New Zealand. SocietyOne launched a broker channel mid 2018 and receives more than 300 broker-originated loan applications every month.
According to Jones, the broker channel not only lends SocietyOne more credibility and contributes to further visibility on the market, but also allows the lender to provide more options to a whole new cross-section of customers that were previously unavailable.
