Bank of Queensland has revealed its plans for Virgin Money's return to the broker market.
Speaking to Mortgage Business, BOQ group executive of retail banking, Matt Baxby, confirmed that the regional bank has committed to delivering a BOQ-manufactured, Virgin Money-branded mortgage product to market within the next 12 months. The new product will be available to brokers, he said.
“This is strategically important to the organisation – it will allow BOQ to enhance its on-balance sheet growth and Virgin Money to expand its product offering to customers,” Mr Baxby said.
“With around 50 per cent of all mortgages being originated by brokers these days, it’s important that the bank make new mortgage products available to brokers,” he said.
The Virgin brand is one of the most recognisable in the world and strongly resonates with its customers, Mr Baxby added.
“It’s too early to give away much of the detail around our new Virgin Money mortgage offering, but rest assured that our marketing and distribution of this product, as well as its customer service proposition, will stay true to the ethos of the Virgin brand,” he said.
Virgin Money was active in the Australian mortgage space and available through the broker channel for a number of years. The group first announced its plans to enter the mortgage market in 2011 after forming a successful partnership with Citibank in 2009.
BOQ acquired Virgin Money in April 2013.
The regional paid approximately $40 million for the exclusive Australian rights to the retail arm of Virgin Group and its brand.
“One of the factors that really attracted BOQ to the Virgin Money business was the opportunity to distribute banking products and services to new customers who are unlikely to ever be BOQ brand customers,” Mr Baxby said.