Original text here from Patrice Bernard (LinkedIn)
Yesterday, when I envisioned the expansion of Cambio's automated negotiation solution into the mortgage sector, I hadn't yet discovered Craggle. Craggle, while adopting a somewhat different approach, promises Australian borrowers access to the best possible conditions on their home loans.
Despite the official communications emphasizing—perhaps necessarily—the use of artificial intelligence, the core of this startup's offering is powered by a concept that was all the rage about a decade ago and has since nearly vanished: the power of the crowd. This principle is as promising as ever, aiming to gather individuals driven by the same goals to exert maximum pressure on their providers.
In practical terms, the service targets those with ongoing loans considering refinancing. After signing up, users are asked to detail their loan characteristics—lender, amount, interest rate, etc. Once a sufficient number of similar applications is gathered, Craggle initiates an "event," effectively a group bargaining session with banks to secure competitive alternatives.
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At the end of this process (which is entirely free for the user), a recommendation is issued, the same for all participants but non-binding, which may include both new and original lenders, provided the latter is willing to make concessions. Presented as an open menu, individuals can then select the offer that best suits their situation or opt out if the benefits do not seem substantial enough.
Naturally, the choice is somewhat biased because, for many consumers, the administrative hassle of contracting with a different financial institution is a significant barrier to change. This is why Craggle recently added a subscription assistance option to its services: by linking to an individual's accounts, it automatically captures all necessary data and pre-fills the required forms.
While using comparison sites (or going through a broker) is almost a universal step in the initial search for a mortgage, borrowers are generally not accustomed to renegotiation opportunities and are relatively unsupported in such transactions. In this context, Craggle offers a dual service: a personalized, end-to-end facilitated process, and a certain guarantee of optimal results through intensified bank competition, promised by a frictionless transition experience.
