Non-major Bank Panel Discussion pt. 2

Non-major bank representatives discuss their relationship with aggregators as well as the importance of brokers exploring their entire lender panel.

To watch the 3rd and 1st part of this Panel Discusion, click on the links below: 

Mortgage Professional Australia - Non-major bank panel discussion pt. 1
Mortgage Professional Australia - Non-major bank panel discussion pt. 3

Video transcript below:

Robin Christie, Managing Editor, Mortgage Professional Australia Magazine
Robin Christie:
 So we’ve talked a lot about the efforts non-majors have made to improve their service proposition to brokers.  But our next question is about how non-major banks can persuade brokers to give them a go, specially if they have been sticking with the majors since the GFC in search of a safe lending option.  So Glenn we will start with you on this one.

Glenn Gibson, Head of Sales and Marketing, AMP Bank
Glenn Gibson:
 I think where the non-majors are playing at the moment or continue to play is, looking for a little niche and once you get that niche and once somebody starts to utilise you and appreciates that you are very good doing that, then you get more business.  And when we look at AMP we are very specialised in self managed super funds. Obviously with our brand it makes a lot of sense, some brokers start to utilise us for that product and then realise well hang on we have the whole suite of products, so we will get a little bit more of brokerage business or more brokerage business.

Robin Christie:  Clive are you building awareness with brokers?

Clive Kirkpatrick, Mortgage Broking General Manager, St. George Banking Group
Clive Kirkpatrick:
 So with us I think it’s important that we provide the customer with a choice as well as the broker.  So we have spoken about, some customers are looking for a branch network, so a number of us can provide that, some are looking for the cheapest product, so a number of us can provide that.  Depending on what the customer wants, actually across the non-majors we can provide it.  I think it’s not only around building brand awareness for us as individuals but also building awareness that there are alternatives to the four majors.

Stewart Saunders, National Broker Manager, ME Bank
Stewart Saunders:
 It is a challenge that we face in terms of market share and having that accessibility.  I touched on before the innovation and I think we have seen some fantastic innovation from a number of non-majors coming out to the market and really providing a difference of service or product or price or credit policy niches that are resounding with brokers and what we also see a lot of is, brokers speaking to other brokers, it’s always a much stronger message coming another broker that they have had a good experience with a bank and they have delivered on their expectations and that’s been a fantastic way that all of us have been able to capitalise and grow market share recently.

Robin Christie:  Another key player in the third party channel are the aggregators.  So our next question is how can the non-major banks work with aggregators to promote their service propositions to brokers, Jarrod.

Jarrod Cahill, State Manager for VIC/SA, Bankwest
Jarrod Cahill:
 I think communication is absolutely critical at all levels of the relationship, whether that you know directors of each aggregation group through to way up senior decision makers right down to the partnership managers and dealing with brokers and utilisation is a critical thing that we look at and by that I mean, ensuring that our service proposition is consistent across all brokers within that specific aggregation group, doesn’t matter what volume you write, we see potential to grow that relationship.  It’s about being consistent and transparent around what our goals are as an organisation and how they could be tailored to fit in with yours.

Ray Esho, National Sales Manager, ING Direct
Ray Esho:  
Recently I have put in a bit of framework in terms of how we go about interacting with our aggregator partners.  So a little of what we have been focusing on is the sharing of strategies.  So we have been applying a bit of pressure on getting some information out of the aggregators about what their strategies are and how we can get them to align with what our strategy is and the better aggregators know their network very well.  So when we are interacting with these aggregators they will often say to us, with what you are looking at doing without wasting time and that’s fine but at least we know and I think that’s the benefit of having a bit more of a targeted approach rather than just a catch up at coffee.  I think the industry is getting a lot better at working at exactly what will work where and if it doesn’t work at least we know if it does, we will then go and act on it.

Fons Caminiti, Senior Manager for Broker Distribution, Adelaide Bank
Fons Caminiti:
 So this year we are having a real crack at working at those sponsorships far more diligently and the BDMs to their credit are putting a lot of work and effort into that and we are trying to drive our own outcomes from PD days.  By the end of the year, I am going to have a look at those outcomes and see where the benefits lie in these sponsorships.  I want to be more tactical next year and even if I can be part of this year because I think at the end of the day what I want to do is work a lot more differently with the aggregators to be honest to try and seek mutually beneficial outcomes.  So let’s see what happens, but at the moment we will just keep working with what we’ve got and see where we go.

Robin Christie:  Why do you think it’s important for brokers to explore their lending panel and offer that selection?

Steven Degetto, Head of Intermediaries, Suncorp Bank
Steven Degetto:
 I think you know customer choice or offering customers choices is a key value proposition for brokers.  You know feedback I get is that customers are more and more shopping brokers, so it’s really around one broker versus another broker and if the initial broker fails to do a good enough job or doesn’t offer something that the customer isn’t aware of, then there is a really good chance that the next person that customer speaks to, if not that at the point of sale at a later point in time will leave.  So certainly key value proposition for brokers and with that it’s really an opportunity for brokers to differentiate their offering to others in the market.

Clive Kirkpatrick:  Yeah, that’s a good point Steve, it’s a I think as the mortgage broking has moved from an industry to a profession, it’s upto the brokers to be aware of what’s going on across major lenders and non-major lenders.  We will continually come out with product innovation, product niches, pricing campaigns, policy changes and as customers are more aware, they will be not only shopping first party to a broker, but also amongst brokers as well and they, the customer will go what they see is the best advice for their specific needs.  It’s important that the brokers are aware of what’s happening around them, so they can actually give the customer the best result for them first time.