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I wish Coles luck, says lender

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Australian Broker | 11 Apr 2014, 08:28 AM Agree 0
Lenders react to the supermarket giant's possible expansion into the mortgage industry
  • Gav of Brisbane | 11 Apr 2014, 09:10 AM Agree 0
    That's great. Lets have them do to Mortgages what they've done to fuel, food, alcohol. They're currently working on destroying the vehicle insurance industry with mortgages next.

    Isn't that something to look forward to Boys & Girls?
  • David | 11 Apr 2014, 09:13 AM Agree 0
    I think it is a great idea - anything to assist removing the dominance of the big 4. There are literally hundreds / thousands of mortgage managers / brokers who could assist Coles get into the market perhaps via a franchise of sorts?
  • Coast Broker | 11 Apr 2014, 09:17 AM Agree 0
    Can I have a bag of potatoes, 500g of Butter and 1kg of Sausages with my $25k Home Loan please. Sorry but grocer selling Home Loans really.
  • Clarke Kent | 11 Apr 2014, 09:26 AM Agree 0
    What next? MacDonald's sell mortgages too?

    It can be called a MacMortgage?
  • Greg Uehling | 11 Apr 2014, 09:27 AM Agree 0
    The outlets are designed to sell products that don't require much scrutiny or professional knowledge thus slogans of "down, down, down" can work. The largest debt that someone is going to take on requires appropriate services and knowledge that I cannot see a retail outlet of this type really making a dent in the system. Good luck Coles. At least the retail bank has a basis for offering loans because they are a bank. I don't see the milk and avocado buyer deciding on sitting with a Coles rep to discuss their finances to make one of the most important decisions in their life. Maybe I'm naive.
  • Stedman | 11 Apr 2014, 09:38 AM Agree 0
    We certainly need another uneducated lender to take the loans the majority don't like.
    Wesfarmers MD has tried this before, did not work out for him and Landmark.
  • Papery | 11 Apr 2014, 09:44 AM Agree 0
    Not too worried....Coles cant get chocolate Easter eggs right without a recall......
    What is a worry is that Im sure many of the processes will be outsourced overseas
    or on line....
  • BJ | 11 Apr 2014, 09:46 AM Agree 0
    Percy, maybe a tune from the Album “Can’t stand the Heat”.
    Just what is fundamentally wrong with the home loan sales industry? You jump up and down and criticise regulators for being too harsh, government for being remarkably oblivious to real issues and the Big Four for being dominant and not enough support for smaller lenders. I want my cake too!
    Now, apart from reading internal briefings Percy, how much homework have we done on the matter of retail players entering the home loan sales space. Well, for starters, the sale of a home loan finance product is regarded as one of the most basic of transactions. Sure shoot me for saying it and yes to all those who can structure the most complex of transactions, we stand in awe.
    The reality is, the Australian market for home loans (as much as we would like to think otherwise) is relatively unsophisticated and Coles and others will add to diversity, create new products and services and you will than see lenders sharpen their act to ensure they retain market share. Gone will be the days of the inertia of the big players and thus more competition.
    As for the broker, well if you honestly cannot see that the entry of new distributors will undoubtedly generate a range of opportunities, than maybe it is time to sell your business, as there are plenty of willing buyers unafraid of a new world market.
  • Joe Broker | 11 Apr 2014, 10:01 AM Agree 0
    Constantly striving to be the elephant in every room.
  • Steve McClure | 11 Apr 2014, 10:19 AM Agree 0
    Such a massive operation would require very experienced people with 3rd party channel experience at an executive level. Does anyone know such people who have recently moved on to pursue "other interests"? Just asking.
  • Country Broker | 11 Apr 2014, 10:23 AM Agree 0
    This is typical of Wesfarmers Coles , hard to know how they will comply with the NCCP requirements , will a supermarket manager be suitably qualified to offer credit advice or will they try and do it by SKYPE like a major ? Will clients be ready to deal with a screen?
  • Monty of Perth | 11 Apr 2014, 11:06 AM Agree 0
    Wesfarmers/Coles are not Bankers and should stick to their knitting.
    With their reference to International trends then why would they be trying to keep the likes of the UK & USA giants out of their retail patch.
  • Dave Robinson | 11 Apr 2014, 12:21 PM Agree 0
    Competition is usually good. My question is will ASIC be able to monitor them? We see they have difficulties with the major banks and lack of resouces to take them on the last thing we need is a new lender treating a home loan as a simple product with no checks and balances.
  • Cory | 11 Apr 2014, 12:26 PM Agree 0
    What if Subway got in on the act? They may cause some confusion with their loan product - SubPrime.
  • Coast Broker | 11 Apr 2014, 12:28 PM Agree 0
    Sorry but I have always said that the right Mortgage is the biggest thing you do after buying a property outside of marriage/relationship and kids. Personally whilst I am not against further competition in the Mortgage Market it is just that I would not be comfortable with a Grocer providing Mortgage Advice. I wonder if you would get a truck load of Fly Buyers points with your Home Loan.
  • David | 11 Apr 2014, 01:09 PM Agree 0
    I very much doubt the "grocer" will be giving advice - I am certain they would employ duly qualified staff similar to all the parties making comments (assuming YOU are qualified enough)
  • Greg Uehling | 11 Apr 2014, 01:46 PM Agree 0
  • PC | 11 Apr 2014, 04:57 PM Agree 0
    Wonder what sort of Petrol discount at the bowser a home loan customer will get Lol
  • SteveL | 11 Apr 2014, 05:04 PM Agree 0
    Mortgages, Insurance, Fly Buys, list goes on and will continue to. I got my car insurance via Coles (From online) and saved a heap due to their low cost of distribution. Similar thing will happen with a Coles white label product. Just remember this is all about distribution with the amount of traffic coming through their stores should translate into some good numbers. Also, anyone thinking they will have their front end staff doing the work is just being naive and perhaps a little scared too. Of course they will employ ones no doubt but brokers none the less. Works well with Aussie and eChoice!
  • Kram | 11 Apr 2014, 11:31 PM Agree 0
    I imagine it would be like Kmart Tyres... "Coles Finance" - similar branding, close proximity (to supermarket), separate business and staff, cheaper pricing, streamlined processing, perhaps even extended business hours to match shopping hours?
  • Colin Rice | 16 Apr 2014, 10:40 AM Agree 0
    I see opportunity in the form of bad advice/loan structures to unravel once said customer goes beyond one property ala uBank and other cheap no advice on line type lenders.
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