Powered by MOMENTUM MEDIA
subscribe to our newsletter

Brokers disengaged with banks: report

A new report has found that less than 50 per cent of brokers would actively recommend their main lender to friends and colleagues.

As part of its annual Third-Party Banking Report – Non-Major Lenders, Mortgage Business's sister publication, The Adviser, asked 1,017 mortgage and finance brokers how they felt about recommending the lender with which they write the most loans to their personal contacts.

Just 47.48 per cent said they were happy to recommend their major lender over the last 12 months, while just over a third (38.83 per cent) were described as “passives” who felt no inclination either way.

That leaves close to one in seven (13.68 per cent) brokers who are detractors, and who may feel the need to actively dissuade those close to them from doing business with their major loan writer.

A major reason for this disenfranchisement may be the support banks offer to brokers. By the very nature of their business, brokers receive an intimate understanding of how banks operate over the life of a loan, not just at the point of application.

Advertisement
Advertisement

According to the report, the support of the majority of the non-major banks have plenty of room for improvement, particularly in areas such as BDM support, turnaround times and mobile device interface.

“Communication with a bank’s BDMs is so important as to how I feel about their products,” said one broker.

“If the BDM shows no smart interest in communications, then I put them in a group of non-communicators. Doesn’t matter how good their products or interest rates are, there is always another lender close by in most fields.”

To find out which bank was named Australia's best non-major lender, click here for the full report.

Brokers disengaged with banks: report

PROMOTED CONTENT


>As part of its annual Third-Party Banking Report – Non-Major Lenders, Mortgage Business's sister publication, The Adviser, asked 1,017 mortgage and finance brokers how they felt about recommending the lender with which they write the most loans to their personal contacts.

Just 47.48 per cent said they were happy to recommend their major lender over the last 12 months, while just over a third (38.83 per cent) were described as “passives” who felt no inclination either way.

That leaves close to one in seven (13.68 per cent) brokers who are detractors, and who may feel the need to actively dissuade those close to them from doing business with their major loan writer.

A major reason for this disenfranchisement may be the support banks offer to brokers. By the very nature of their business, brokers receive an intimate understanding of how banks operate over the life of a loan, not just at the point of application.

According to the report, the support of the majority of the non-major banks have plenty of room for improvement, particularly in areas such as BDM support, turnaround times and mobile device interface.

“Communication with a bank’s BDMs is so important as to how I feel about their products,” said one broker.

“If the BDM shows no smart interest in communications, then I put them in a group of non-communicators. Doesn’t matter how good their products or interest rates are, there is always another lender close by in most fields.”

To find out which bank was named Australia's best non-major lender, click here for the full report.

Brokers disengaged with banks: report
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Latest News

Risks to financial stability could be building as house prices and debt levels keep rising, the Reserve Bank has cautioned. ...

The big four bank has unveiled its response to past regulatory issues, a program meant to improve its risk management and accountability.  ...

The proposed acquisition of Westpac PNG and Westpac Fiji by Kina will no longer proceed, it has been confirmed. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.