February spike cuts through 'static' for Heritage

by Adam Smith06 Mar 2012

Heritage Bank has claimed it has reaped the benefits of customer dissatisfaction following rate hikes in February.

The mutual bank has announced an 82% jump in home loan inquiries for February, which chief executive John Minz said came following a "relatively static" previous five months.

"A significant chunk of those people were customers from one of the big banks who have started to realise the benefits of switching over to Heritage," Minz said.

This "significant chunk", Minz said, has led to 30% of the bank's business in February coming from customers refinancing loans from other institutions.

The spike also comes after Heritage last month expanded its broker distribution nationwide. The mutual added to its East Coast network by announcing it would distribute through brokers in Tasmania, the Northern Territory and WA. While the company pulled back from third-party distribution during the GFC, Minz claimed it had now returned to the channel to sit on the panel of eight of the top 10 broking groups.

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