We have seen the likes of Spreets, Living Social and Groupon leading the trend in the group buying concept over the last couple of years. It's popularity has increased immensely over the last year or so with the crowd, who are always looking for a great deal. We are starting to see a number of new startups taking the crowd power group buying concept to a new level.
Australian startup One Big Switch, is using crowd power to obtain better mortgage deals with the various financial institutions for everyday mortgage holders. One Big Switch launched its first campaign "Choice Big Bank Switch" on the 31st July 2011 to find 1000 Australian mortgage holders willing to switch banks for a better mortgage deal. 10,000 Australian consumers registered in the first 12 hrs and 40,000 registered in the first 2 weeks.
Concept is simple, mortgage holders interested in switching banks for a better deal register on the One Big Switch site. One Big Switch negotiates with lenders, seeking the best deal and rate for the switchers. Mortgage lenders compete with each other to attract the group of switchers with a special offer and rate. The registered mortgage holders then have the opportunity to determine if the winning lender offer is right for them.
One Big Switch monetization is based on a commission model which is paid by the lending company who win over the switchers. One Big Switch advises that full disclosure of commission payments is disclosed to all switchers.
Currently One Big Switch is looking at other switching offers such as electricity and other market segments.
Another great example of an innovative startup creating a twist on an existing competitive market concept. Why not start a similar concept in your corner of the globe, inturn demolishing government and corporate dominance. People power is showing no signs of slowing down.