Mutuals are beginning to lose their wariness of the broker channel as more begin opening themselves to third-party origination.
Connective has announced it will open credit union products to its broker network after adding Phoenix Mortgage Management to its lender panel. The move comes after aggregators Choice and PLAN struck similar deals with Phoenix, and Phoenix chief executive Allan Willoughby has told Australian BrokerNews developments represent mutuals’ growing confidence in the broker proposition.
“I think as time goes by and more loans are originated through the broker channel, that confidence grows. That’s a good thing. It’s a good source of distribution for mutuals and for brokers, so it’s a win-win,” he said.
Connective head of sales Michael Goerner said the addition of Phoenix to the aggregator’s panel presents an opportunity for brokers to provide clients with a stable alternative to banks, and to tap into growing consumer awareness of the mutual sector.
“Credit unions have a reputation for providing borrowers with competitively priced mortgages and through this essentially keeping the traditional lenders honest. They have created a strong and loyal customer base and remain a stable source of funding for Australians,” he said.
Willoughby agreed, and commented that brokers could now appeal to borrowers were “anti-bank”
“There’s definitely a segment of the market that are just over the banks, and they’re looking for a safe alternative. Credit unions give brokers the opportunity to offer that safe alternative,” Willoughby said.
\Willoughby said Phoenix would look to expand its current arrangement with credit union securitisation platforms, and was seeking to work directly with credit unions to originate balance sheet funded products.
“At the moment it’s just restricted to this program, but what we are looking to do is engage with other credit unions and expand to those credit unions. We’re looking for other credit unions who want to have access to the broker channel, but don’t have the experience or knowledge. We’ll be the conduit for those that want to access brokers,” he said.
Choice adds credit union products
PLAN offers access to credit unions