A new social network for finance has been launched called dfinanz.com that connects financial consumers.
The new site was launched a few weeks ago and gives consumers a vehicle to share information and insights, compare financial products and ask each other questions.
The site’s founder Peter Coco explained the site to Australian Broker.
“There are two components to the social network. The first one is the ability to post content, ask questions and share insights – and that is done through the traditional social network framework which is quite similar to Facebook,” he said.
“The second component is the ‘fair rate movement’, where we operate the ‘fair rate list’… It provides people with the ability to signal to each other and signal to their providers rates at which they are prepared to make a decision around whether they refinance or not.”
The ‘fair rate list’ is essentially a database made by users who put forward details about their mortgage such as the loan size, interest rate paid and interest rate sought. As a result it gives users a referenced point of where the market is at by allowing them to compare mortgages.
Consumers will be attracted by the site being completely free of charge, anonymous and obligation-free.
Mr Coco told Australian Broker that the point of the site is to create transparency and clarity.
“My professional background is financial markets. It is one of those things where I can sit on a trading desk and I can obtain at any second in time where LIBOR in England is trading, but then for me to get information about what a fair interest rate on a home loan is, I have got to go wading through rubbish,” he said.
“So I put together a team and thought let’s just build this thing and take some of the transparency that you do find in financial markets and take it across into this area of finance.”
While Mr Coco said dfinanz does move discussion away from one-on-one exchanges between consumers and banks, he doesn’t see the site as a competitor to mortgage brokers.
“We are not a competitor for brokers. Brokers over the last 20 years have added a great deal of value to the system. They have managed to bring that price intention into the equation between the banks, which didn’t exist prior to the brokers coming on the scene. So they’ve added a great deal of value there.”
“But brokers also provide that sort of personal relationship and advice piece that some people need. We respect that and we appreciate what they do. We are a social network for finance so we just try and provide a framework where people can interact with each other and assist each other.”