Musings of a FinTech: Why “if it ain’t broke, don’t fix it” isn’t always true

In 1977 Bert Lance coined the oft-used phrase “if it ain’t broke, don’t fix it” – but you only have to look at the disruption that’s happened due to technology over the past decade to know this isn’t true anymore.

Extensively covered examples, like Uber and the taxi industry, Airbnb and hotels or even case studies from closer to home such as Xero and accountancy, have shown that left field thinking and broad access to technology have changed the game. It’s no longer good enough to rest on the laurels of existing business models, just because they bring consistent returns and customers appear to be content. Chances are there is a better way to do things which someone is working on quietly in their bedroom or a co-working space somewhere.

If it aint broke fix it

At Huffle Home Loans, this is what we are looking to bring to the home loan space. For years, banks in Australia have delivered record profits driven off the back of a mortgage industry where the products have stayed stagnant and the public’s appetite for property as the most popular investment option has kept demand high. To the banks, and most consumers, the system isn’t broken… So why fix it?

We think there is a better way, and it’s all about fixing it!

Huffle has built a new home loan model, which allows us to take on some of the risk that a customer would normally absorb (through their interest rate). This in turn, enables our partner bank to offer a lower interest rate, fixed over a long period of time. The loan also come with added features like; no penalties for paying out early, and flexibility over breaking out of the loan after a period of time (before the full term).

The biggest hurdle is getting the banks on board. As mentioned, they have a proven model that continues to drive increasing profits with the added bonus of high barriers and government protection preventing new entrants. But what about you – the customer? Are the current mortgages in the market what you really want and need? Or can they be delivered in ways that better serve you?

That’s why we need your voice and support to join together and help bring our products to life. We’ve built the model. We have the team in place. The last 2 things we need are a bank to supply the loans, and most importantly, the customers telling the banks that it may not be broke – but we can surely FIX it.

Sign up at huffle.com.au to keep informed about our launch and lend your voice to our movement.

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