Gateway Credit Union has announced its 2014 financial results, which have revealed double digit business growth as a mortgage lender despite a 31% fall in its profitability.
Gateway funded a record number of loans over 2014, growing its loan book by 11.7% – well above banking system growth. The growth in mortgage lending contributed to the 11.9% rise in total assets.
Paul Thomas, chief executive of Gateway, says that brokers played a vital role in producing a record number of loans in a price war “blood-red ocean”.
“I recognise the invaluable contribution of our staff and third party broker distribution partners, Connective, Mortgage Choice and Yellow Brick Road to our success. Since Gateway entered into the broker space near five years ago, these partnerships demonstrate how a smaller, customer centric and more agile ADI can bring greater competition to the marketplace, giving Australians a fairer go,” he said.
Gary English, chief operating officer of Gateway says they will continue to invest in their service model so they can understand the needs of their broker partners and customers.
“We are proud of our emergence as one of the leading mutuals in the broker space. Our service model is about value, consistency and understanding the needs of our broker partners and their customers. We have already built a reputation as a lender closely aligned to the needs of our market and our recently enhanced ‘Family Pledge’ product is another great proof point. Not only do we recognise the impact of rising property prices to those seeking to purchase a home, we have actually done something about it," he said.
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