Moving beyond mortgages
Mohnacheff said one of the lender’s goals was to help brokers look beyond residential mortgages for revenue streams.
“When we look across our structure, we play in four very distinct areas: residential mortgages, the motor vehicle finance space, the commercial space and, sitting across residential and commercial, our real strength in SMSF
lending. So we’ve got this wonderful plethora of products that we can bring to the market,” he said. “We’re working very heavily with the broker space to make them aware that we’re not just here to do a mortgage, but that we can help their customer with car loans, with commercial loans, with SMSF
lending and we’ve got a few more tricky products up our sleeve that will be coming out as well. It will be a broad finance offering to the broker market. That sparks their attention.”
The key to helping brokers make the transition, Mohnacheff suggested, is education.
“We’ve got nearly 40 BDMs across Australia. We have residential mortgage BDMs, commercial BDMs, motor finance BDMs. Brokers may believe that these are difficult things to do, but we’re educating brokers that the one thing all these areas have in common is that you’re lending money. Brokers are finance specialists. They’re not just home loan specialists. And that creates a broader relevance of brokers to the consumer market. It’s not just a one-trick shop. It’s almost a department store of finance. All that changes is the asset. The fundamentals of lending do not change,” he said.
One thing that does change, however, is the way people interact with the home loan process. This means brokers need to pay attention to technological innovation, Mohnacheff said.
“I think brokers should also embrace technology and all the innovation that will be coming from smart, niche non-bank lenders that can provide products and access to data quickly through mobile networks,” he said.
“I really want brokers to think, ‘Am I playing in the technological age?’ If you’re not, embrace it because more and more stuff will be coming to you to give to your customers. It’s the future. And watch this space because there’s a lot more funky stuff coming.”