Bankruptcy Two to Launch Smartphone App and Become ‘Uber’ in Debt Control
Bankruptcy Two will play a very important role in the Credit Score Intelligence technique as it looks set to release a debt control app and expand the industry in Australia.
Since taking on the role of COO of Credit Rating (ASX: CI1), Will Banks has always said he needs to diversify the business from his main focus in Hong Kong and build a share of the market here in Australia.
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Part of the tactic is to expand what is already working smart in Hong Kong, the debt restructuring industry, and capitalize on that momentum right here within the country.
Despite this, CI1’s 60% acquisition of Bankruptcy Two last year will now play a crucial role in executing the strategy and pulling that portion of the market down.
Founded in 2015, Bankruptcy Two is a fast growing Sydney-based debt control company that offers occasional debt negotiations and loan mediation for those experiencing financial difficulties in Australia.
Its debt response services and products are particularly tied throughout the pandemic, as they offer people another strategy to avoid the chapter.
Storer spoke with Bankruptcy Two Founder and Chairman Chris Mushan, who told us that the name of the company portends a fresh start and “subsequent bankruptcy” for those going through financial difficulties.
Mushan made the most of how his buyers have turned to the business when they feel a little behind their financial situation and are looking to avoid default.
These consumers normally have between 3 and in the worst case 20 bank cards and have therefore fallen on the back of the bills.
“Our traditional consumer has around $ 50,000 in unsecured debt, but can go through as many as thousands depending on their financial situation,” says Mushan.
Occasional debt settlements
The various debt restructuring companies most often focus on customer insolvency, which is covered by the regulation of the chapter.
Under this association, the bankrupt would in most cases have to pay the financial institution’s collectors or trustee, who has penalties for his credit score document.
What Bankruptcy Two does in another way is that it specializes in what is called “casual debt settlements”.
Based on the buyer’s inventory, Bankruptcy Two offers many choices for restructuring a buyer’s debt.
“There are two main services and products that we provide, one is where we put the debtor in a hardship settlement with the financial institution for 6 months so that we can work with them on a response. ”
“If the debtor can get the money after six months, we will help negotiations with the banks to just accept the charges and partially write off the debt,” Mushan said.
When this is completed, the debt will likely be written off and will not impact the buyer’s credit rating, he said.
Opposing carrier Bankruptcy Two provides consumers with what is known as an “occasional settlement”.
“Here, we lend a hand to negotiate a fee plan with the banks most often over 5 years, and we pay off the debt over the years, with frozen interest rates.
Debt control software application
Serving thousands of Australians over the years, Mushan has learned that Bankruptcy Two wants a debt control instrument that allows buyers to have all of their money owed in one place on a smartphone app.
This could turn out to be a fact more and more quickly, as CI1 and Bankruptcy Two are set to launch a whole new smartphone platform, which Mushan says is the only generation of its kind used in the field of debt control.
Among the different options, the app could have a singular strategy to obtain and distribute mortgage payments from a borrower to pay collectors.
“This application tool can be very similar to what CI1 uses in Hong Kong, with the knowledge transmitted from our Salesforce portal.”
Necessarily, consumers can see all of their money owed on this one app, with their creditworthiness robotically updated every 30 days through the portal.
This allows people to see their creditworthiness improve over the years, in addition to their repayment history for each debt in the same position.
“There are no other vendors (except Bankruptcy Two) that provide the fintech platform that handles client money and trades with banks at the same time,” Mushan said.
Mushan explains that because the app collects information in the years to come, the company will be able to see how its customers’ credit scores have improved, eventually allowing them to cross-sell to different money products.
“It will start off as a debt control instrument, but one day it will become a full-fledged platform for money products and services,” he said.
One imaginable monetary product that Bankruptcy Two might one day offer is loan brokerage.
According to Mushan, the knowledge accumulated through the app can provide triggers, corresponding to when consumers can buy their first home or refinance.
“If they are able to show a fair repayment history, we will re-analyze their situation internally and paint with them against acquiring their first home.”
Bankruptcy Two recently used a wholesale loan license, which will likely be key to the development of the company’s loan portfolio in the future.
Long-term imaginative and premonitory
According to COO Will Banks, CI1’s imagination and long-term foresight in Australia is to partner with Bankruptcy Two and strengthen its Australian industry.
He believes it is crucial for an ASX listed company to have a strong presence in the domestic market.
He also believes that the Mushan application and industrial style built from scratch can also be simply replicated and extended to other spaces.
“In the long term, when we create Bankruptcy 2 in other Australian states, we will try to expand it to different places like New Zealand and the UK,” Banks said.
Banks have likened the two bankruptcy in debt control to what Uber is in taxis.
“We allow the person to closely follow, in real time, the location of their debt. ”
“And through a partnership with Bankruptcy Two, they were poised to strengthen their creditworthiness and reduce their debt over the years,” added Banks.
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