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Brokers disengaged with banks: report

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.

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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
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