Credit Simple chief executive David Scognamiglio says Australians can save “on average about $830” on their financial products if they are willing to shop around.
“There are a lot of challenger brands out there in the market pricing for risk, and particularly peer-to-peer lenders and some of the smaller companies,” Mr Scognamiglio told Nest Egg.
“You can get really sharp interest rates on personal loans, particularly if you have a good credit score so you can get down to that 7 per cent mark for a personal loan on a really good credit score if you shop the market well.”
Mr Scognamiglio said knowing your credit score was one way Australians could take advantage of better, risk-priced rates offered by these companies, adding that using your personal finance data to find better products is likely to become more popular.
“There’s a real drive for consumers to own their own personal financial information and I think we’re going to see that play out over the next five years,” he said.
“The government is building a set of rules and regulations to make the financial community provide consumers with access to their data in an easy electronic format where they can port it around, so we’re going to start to see this.
“If you’re a consumer, you really need to know what’s in your data, how to port it, and start to shop around the market for how they can use that information, because over the next five years it will result in better deals, easier ability to switch and a tonne of savings.”