How a simple tool can handle consumer loans and make you money

Under the new best interest duty, brokers don’t earn a commission for assisting a client in obtaining a personal loan. This has brought on a new technological solution – The Money Matchmaker™ – to address the issue. In this article, we will start by providing more information for why this tool is needed and we will show you how easy it is to utilise it in your business. 

As you know, the Best Interest Duty (BID) and the Conflict Priority Rule (CPR) which have been in force since the start of 2021, apply to all consumer credit that brokers assist clients with. 

It has sent a strong message to brokers that in order to work in the best interests of their clients, they would have to dial down rates to the base rates and give up their remuneration. 

Due to this, many brokers exited the consumer finance space, out of a sense of injustice. As a result, it has unintentionally pushed clients towards going direct to lenders (who are not subject to BID) or other sources where they do not receive the same level of protections. 

What does Money Matchmaker offer?

To address this pressing concern, a group of experts at Money.com.au worked tirelessly on a better solution – a simple and convenient tool with broad appeal for brokers and customers alike. 

The Money Matchmaker™ is an innovative online matchmaking engine that shows consumers the most suitable personal and car loan options from a panel of 11 top lenders. The expectation is that it works like a broker and does all the eligibility screening to provide a more accurate and truthful assessment of your client’s case. 

This tool has been loaded up with all the information that lenders use to make a decision on whether they will lend you money, how much they will lend and at what interest rate. Everytime someone uses it, it conducts a straightforward questionnaire and measures their answers against the lenders’ criteria to present them with the best deals. Its design is intended to put the most power in the hands of consumers. 

Let’s talk examples:

From a practical perspective, it seems that we need to show clients only great rates and repayments in order to remain BID compliant with personal loans. However, from an expert view, it’s also about ensuring that the loan actually meets the clients needs. 

Early repayment – where your client is looking to acquire a car loan and to repay the entire amount early. This consideration can make a cheaper car loan unsuitable if the lender charges very high fees for early payout. Money’s Matchmaking engine shows repayment options and rates but also all fees and loan attributes for all eligible loans, so your client can make an informed decision.

Why Money Matchmaker is needed?

Money has proven a path to broad adoption by brokers to scale and ha