How can non-bank lenders increase consumer awareness?

MPA asks leading non-bank lenders how they plan on increasing consumer awareness.​

Mario Rehayem“As a non-bank lender, it is important not to assume that consumers will understand the benefits of a non-bank offering. Non-banks have the advantage of being able to be more nimble and flexible, and in many cases, can provide a superior service delivery.

Unfortunately, until consumers start to recognise the value proposition of a non-bank lender, we will continue to struggle to successfully compete with the majors. The only way to do this is to raise the profile of non-banks by advertising and raising awareness/profile in the market.

In an effort to increase consumer awareness, Pepper has recently launched an educational campaign, ‘Absolutely Positively Pepper’, aimed at helping more Australians understand how a specialist loan from a non-bank lender can help them to achieve their financial goals, whatever their circumstances.

To deliver this message, Pepper has adopted a multimedia strategy, from local print and online advertising to strong community sponsorships (Western Sydney Wanderers and Pepper Stadium in Penrith).”


Ray Hair“There are two elements to mortgage managers raising consumer awareness: promoting the sector overall, as well as the individual brands within it.

Collectively, mortgage managers need to do a better job at promoting their offering to enhance borrowers’ awareness and understanding of the sector. We need to be consistent about the message that we are communicating to the market. Are we non-banks? Are we mortgage managers? We need to ensure that the messaging we all use resonates with consumers.

Consequently, as the individual brands promote their respective propositions, they also promote the mortgage management sector as a whole.

Homeloans largely conducts its consumer promotion via sponsorships, such as our sponsorship of the Perth Scorchers in the T20 Big Bash League and a number of smaller sporting clubs and associations around the nation. We believe that our promotional activity would be more effective if the consumer market had a greater understanding of the mortgage management sector.”


David White“To increase consumer awareness, non-bank lenders should identify their preferred markets and then communicate to them on the platforms where they already spend most of their time.

At Australian First Mortgage, we understand that the majority of property buyers in Australia use platforms like Facebook and Twitter for something like 20 minutes a day – every day. These platforms have a diverse geographic and demographic reach, and have become significantly influential in guiding popular opinion.

Another effective way to build brand with consumers is through sports and community sponsorship. Some well-known mortgage managers and non-bank lenders have had success with mainline sponsorships with high profile AFL and other football teams.

Don’t forget about the opportunities that both traditional and digital media still provide. Digital media in particular provides some inventive opportunities for direct consumer brand building with innovations like remarketing, audience lookalike and recent purchasing options.”
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  • Cairns Broker22/06/2015 10:35:51 PM

    This article is all about promotion and awareness to consumers. As a broker I cannot see any benefits in recommending clients away from the majors to non-bank lenders, or even to the smaller banks. Nimble and flexible, provide a superior service delivery etc. is all talk. In reality service is pretty ordinary with every lender we deal with. Give us some compelling reasons for our clients and us to support you.

    1
  • Spring-A22/06/2015 1:25:44 PM

    I also ask these questions in light of the provisions of the National Credit Code (NCC) S.76 and S.77.

    76   Court may reopen unjust transactions

    Matters to be considered by court
    (2)  In determining whether a term of a particular credit contract, mortgage or guarantee is unjust in the circumstances relating to it at the time it was entered into or changed, the court is to have regard to the public interest and to all the circumstances of the case and may have regard to the following:

    (i)  the extent to which the provisions of the contract, mortgage or guarantee or change and their legal and practical effect were accurately explained to the debtor, mortgagor or guarantor and whether or not the debtor, mortgagor or guarantor understood those provisions and their effect;

    If a Non-Bank / Mortgage Manager make representations that they are the lender ... and the real legal and practical effect of placing a trustee on the loan agreement and mortgage is not explained to the borrower prior to entry into the contract, you guys are going to have serious issues trying to explain your way out of this one in front of a judge.

    This type of conduct may be construed as unjust and unconscionable.

    In my humble opinion....

    2
  • Spring-A22/06/2015 12:36:54 PM

    I wonder, are Non-Banks / Mortgage Managers informing potential customers that they are not lenders at all?

    Are Non-Banks / Mortgage Managers informing customers that a third party 'trustee' will appear on their loan agreements and mortgage documents?

    Are Non-Banks / Mortgage Managers explaining to customers that if they are ever taken to Court by the trustee, that the 'trustee' distances itself from any activity of the Non-Bank / Mortgage Manager and states to the Court that the Non-Bank / Mortgage Manager was acting as an agent of the borrower?

    Sponsoring football teams and naming rights to stadiums isn't going to fix the non-dislcosure issue that you all have and I strongly suggest all you Non-Banks / Mortgage Managers start being open and transparent in your dealings with borrowers or people will move over to the Big 4 ....

    3

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