Matt Bauld, general manager for sales & business development at Prospa, on how fintech will shape 2018
Disruption is a buzzword that can lose its meaning in real world application. But fintech has been shaping the role of brokers for several years now, facilitating diversification and providing new solutions for clients.
Brokers have seen the future
Fintechs are more flexible than the big banks, and make it easy for brokers to extend beyond their core offering. An increasing number of residential brokers writing commercial loans, with MFAA data showing an 11.5% rise in the past 6 months. Non-bank lending has increased by almost 7% in the same time period.
This growth is fueled by fintech. Now in its sixth year, Prospa has already delivered more than half a billion dollars to small business owners with average revenue growth of 239% since FY14. We help our 5,000+ referral partners grow as well, with smart tech tools, training and marketing resources to help them find and win more clients.
Fintech solves real problems
Fintechs leverage their flexibility to solve customer challenges. While traditional lenders can be slow to respond, fintech disruptors can solve customer problems in an agile way, and in real time. For example, understanding how small business owners struggle with cash flow over the holiday period, Prospa offers a payment holiday for new loans, allowing business owners to focus on the busy end of year period without worrying about repayments.
Fintech is the new normal
Reports show almost 40% of Australians are already using fintech, and the sector can no longer be called ‘alternative’. But while consumer expectations and behaviour are changing, trust is critical to encourage use of a fintech lender, so working with ran established partner is critical.
Now in its’ sixth year, Prospa has the most experience in managing partners, the best tools and resources, and a proven ability to scale. Our credit decision engine is powered by more than five years of data, enabling us to be more accurate in assessing risk and being able to say ‘yes’ more often.
A new wave of innovation
2018 will bring a new wave of innovation. Changes to the regulatory environment including mandated CCR from 1st July, easier pathways to becoming a bank, and the potential for open data will all lead to increased innovation and disruption from fintech companies.
Embracing fintech to diversify your portfolio will give you access to new revenue streams, new customers and help build loyalty with existing clients. As a broker, if you aren’t helping your customer, someone else will - so stay relevant and connected to help solve the problems they are facing.
Matt Bauld is general manager sales & business development at Prospa. He has 15+ years sales management experience in commercial and consumer finance, and at Prospa he is responsible for building high performing channels and partnerships, and business development.