Brokers behind lender’s $5bn loan bonanza

by Miklos Bolza07 Feb 2017
Non-major lender Bendigo and Adelaide Bank has managed to bring in over $5bn worth of loans over the past year thanks to a strong growth in mortgages.
“The last six months, we’ve had a really strong set of results that originates from brokers. That’s been driven by aligning our processes through a number of key parties,” Bruce Speirs, executive of partner connection at Bendigo and Adelaide Bank, told Australian Broker.
The lender primarily brings in loans through partners and partner groups such as Aussie Home Loans, Connective, Smartline, and PLAN, mortgage managers such as AFG, and individually accredited brokers across the country.
Spiers said the bank runs two different bank models – a community bank model through Bendigo Bank and a third party model through Adelaide Bank.
“The only way to get an Adelaide Bank loan is through a broker and the only way to get a Bendigo Bank loan is through a retail franchise.”
This means the Adelaide Bank proposition is exclusively targeted towards third parties including products, services and support, he said.
“The product set that we have was specifically built from the ground up with brokers and other intermediaries in mind. So it’s all focused around pre-existing product offerings, a high level of process efficiency, and as a result a relatively low cost of competition.
“The overarching theme is that service and products have been designed for the third party channel as opposed to being a retail product that’s forced into the broking channel.”
Part of the $5 billion of loans brought into Bendigo and Adelaide Bank emerged through the Keystart acquisition in September last year. A large proportion of these loans are written by brokers, Speirs added.
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