Macquarie Bank has been steadily making its mark since returning to the post-GFC mortgage market. Today, James Casey tells Australian Broker TV the bank is rebuilding its relationship with brokers over time.
Video transcript below:
Donna Sawyer, Australian Broker TV
Donna Sawyer: Macquarie is doing its level best to win friends in the broker circle launching a TV ad campaign pointing home buyers to visit their mortgage advisor. James Casey says the move was all about driving consumers to the broker channel, a crucial part of their business.
James Casey, Macquarie Bank
James Casey: When we knew we wanted to run with the TV program, it was second nature for us to make sure that the call to action was to ring our financial intermediaries. So not a strategy as such, it was really a part of what we do. They are the one channel that we operate with, so driving people to that channel is as I say second nature.
Donna Sawyer: Macquarie has been steadily making its mark, since returning to the mortgage market in the recovery phase after the GFC. And in an environment where banks continue to jostle for broker business, James Casey says the road to redemption has been tougher than he anticipated.
James Casey: It’s been really difficult. I think in ways I certainly underestimated how long that journey would be and how tough that journey would be. I totally understand that we support small businesses, is exactly what we do. 99% of our mortgages go out through the mortgage broking third party channel and that is represented by 10 or 11,000 small businesses. So when we basically wound back on the originations, definitely understood how that could hurt small businesses. We were a major supplier if you like of products and services to those small businesses. In many ways without being immodest our success prior to 2008, I think amplified our decision, because we really let a lot of people down. There is no magic cure, except time and we have just got to continue to work hard to get back the people that we lost in 2008. We have been I think very successful so far, but we have got a long way to go.
Donna Sawyer: He says Macquarie is listening to broker feedback and acting on it.
James Casey: One of the things we have done apart from the advertising recently is, helping make our credit card bundled package loan a little bit more attractive. We heard the brokers basically saying, people take the card because it’s part of the package, but they are not using the card and it’s difficult to sell the package because our card really didn’t have the bells and whistles. So we now actually have 3 bells and whistles on our credit card that comes with our mortgage. One is what I call the toaster rewards, so there is the reward points where you can buy a toaster or whatever you want, a Myers Gift card. Then there is the Qantas Frequent Flier points which we have had since the end of last year, which is really really exciting. So great for the points junkies and then thirdly we have a rebate system whereby for a certain amount of spend every year, an amount of money comes off your mortgage. So that was just listening to the brokers and they are obviously listening to their own clients and taking some of that on board. The other thing is that we now have our credit cards actually being assessed and approved by exactly the same credit analysts that assess our home loan. So it doesn’t go off in those two separate departments. It’s really about the one process.
Donna Sawyer: This is Donna Sawyer reporting for Australian Broker TV.