“I thought it was the biggest waste of time for a salesman to sit in the car and drive around calling on brokers face-to-face. It is great to catch up with brokers on PD days but an e-BDM sits at his desk and is able to talk to brokers over the phone or over the internet all the time.
“A lot of the other lenders are now starting to focus on employing e-BDMs to do the same thing. You don’t need someone driving in a car to see three people a day when he can call 60.”
But on top of technology — and potentially even more important than technology — Cannon says the simplicity of the actual product offering is what sets non-banks apart from banks.
“All we ever hear about banks talk about is this notion of ‘share of wallet’ and they are spending millions of dollars on systems to attract customers in on one product and then sell them that product and this product. But from my personal experience — and I'm a Westpac private banking customer — every time they introduce a new person to me the first thing they do is try and flog me life insurance and I get sick of that.
“What I have learnt from our online-only lender [loans.com.au] is that there is absolutely no customer loyalty to the customer of the future. The online customer, the customer of the future, will shop to get the best home loan, the best car loan, the best credit card and the best insurance from whoever is offering it, whether it be a bank, non-bank, direct to a lender or through a broker. They won’t care whether it is from the same company.
“Here we are with all these banks gearing up for the customer of the future to get everything but that customer will be smarter than what they might think. If we have a great home loan, that is all we are going to sell you. We are not going to flog you life insurance.”