Powered by MOMENTUM MEDIA
subscribe to our newsletter
Big opportunity in third-party business lending: BMM

Big opportunity in third-party business lending: BMM

A lucrative opportunity exists in the underserviced SME lending space, which has seen considerably less investment and support than the third-party mortgage distribution channel.

Better Mortgage Management (BMM) national sales manager Murray Jones told Mortgage Business there are synergies between mortgage brokers and SME borrowers that make it a perfect market to tap into.

“Brokers are in the ideal situation to relate to these borrowers as they are small business people themselves and have faced a similar adjustment to their market environment post-GFC,” Mr Jones said.

“Brokers are becoming more comfortable with their obligations under NCCP and now understand that they can provide solutions to these SMEs while still being compliant with responsible lending criteria.”

Mr Murray’s comments come after Firstpoint director Troy Phillips flagged an opportunity for capital hungry lenders.

“The banks neglect the SMEs,” Mr Phillips said. “I think they have got to have a look at that lending space because someone is going to come in and take it all.”

BMM’s Murray Jones believes the lack of investment, product development and innovation in SME lending has left it open to new entrants.

“In terms of third-party or broker-introduced business, I don’ think the same amount of investment, product development or innovation is available for business lending compared to residential lending,” Mr Jones said.

“Therefore an opportunity definitely exists,” he said.

“Whether any new entrant can fund such lending at a competitive rate and return to them for the perceived higher risk associated with business lending is the question that they would have to ask themselves.”

Big opportunity in third-party business lending: BMM
mortgagebusiness

Latest News

Pricing for mortgages is “opaque” and the cost and effort needed to search for discounts is “unnecessarily high”, the ACCC’s Resid...

The downward trend in home loan approvals reversed in October, but the spike is set to be short-lived, according to analysts. ...

The Customer-Owned Banking Association has welcomed the Coalition government’s joint party-room approval of legislation designed to reduc...

FROM THE WEB
podcast

LATEST PODCAST: Changing faces and bank growth slowdown

Is enough being done to ensure responsible lending?