Scalability will be the key to success or failure as mutuals expand into broker distribution according to Gateway’s Gary English.
English, the credit union’s chief operating officer, has told Australian BrokerNews that many mutuals may have trouble gaining a foothold in the broker space if they do not have the correct platforms in place.
“We’re aware of other credit unions distributing through brokers, but they’re predominantly manual, so it’s 150 page faxes and that sort of stuff, which is just not scalable,” English said.
Gateway late last year announced it would distribute through Mortgage Choice. The mutual already distributes through Yellow Brick Road, and English said the choice to distribute through franchise networks allows Gateway to put scalable processing platforms in place.
“One of the reasons we work with Mortgage Choice so well is we’re able to deliver an electronic platform that other credit unions aren’t delivering. We’re very conscious of brokers’ business requirements. There’s a general need from customers around the mutual offering from a product sense, but equally important is the integration of our systems into the broker’s business model,” English said.
English said Gateway had worked to provide platforms to ensure it can cope with volumes coming from large franchise networks, developing different solutions for both YBR and Mortgage Choice.
“With YBR, we’ve developed an online portal exclusive to them that plugs straight into our origination system. With Mortgage Choice, we’ve been able to develop an integrated system that goes straight to their existing platforms,” he said.
Equally important to the success of broker distribution, English said, was that mutuals gain an understanding of the third party channel and the needs of brokers.
“You have to have familiarity with how the broker market works. We’re putting on a BDM salesforce that has direct experience in that space, because the touchpoints with brokers are really important. It’s not always about price of the commission they may earn. It’s about consistency and reliability,” he said.
Gateway opened as credit union drive continues