E-LOAN gets big yawn from big banks

E-LOAN Australia, a joint venture between News Corp subsidiary eVentures and Japan-based Softbank, launched earlier this week claiming access to more than 60 per cent of the local credit loaning market.

John Magee, E-LOAN's CEO, said his company's free service enabled users to make speculative and comparative calculations on the Website. E-LOAN would be paid by its partnering banks, not by its customers, he said.

However, neither the Commonwealth Bank of Australia (CBA) or the National Australia Bank (NAB) have agreed to partner with E-LOAN. According to a recent Merrill Lynch study, CBA had an 18 per cent market share of all credit loans taken out in Australia in December 1999. NAB, with 17.6 per cent, had the second largest share.

According to CBA's head of personal financing, Dhun Karai, E-LOAN approached CBA in pursuit of a partnership deal. She said the bank was not convinced E-LOAN could offer anything CBA's existing online financing service could not.

"E-LOAN is a new entrant . . . We've had a lot of these [Internet loan brokers] come in over the last six months, and some of them have basically disappeared without a trace," she said.

She cited the bank's own research into online mortgage consumer takeup, which found less than 2 per cent of Australians would consider taking out a home loan via the Internet. "This only means they would consider trying it [taking out a loan via the Internet]. They're not actually applying for it," she said.

Karai said that although CBA already ran its own online lending service, the bank was reluctant to invest in resources that were disproportional to the service's success. "To put in the investment, management and time . . . no one has the volumes to show for it. That's our big issue."

An NAB spokesperson said the bank had also decided not to partner with the broker. There was little incentive to partner with an intermediary party because of the resulting decrease in profit margins, the spokesperson said.

"There's quite a few of these [Internet loan brokers] around. We get approached by hundreds of these companies every day."

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Byron Kaye

PC World
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?