Brokers critical to non-major’s diversification strategy

by Julia Corderoy18 Aug 2014
Mortgage lending accounts for a huge 78% of Suncorp Bank’s lending portfolio, and the intermediary channel remains a critical part of the bank’s lending strategy and growth. 

The non-major increased its home lending by 5% to $39 billion over the 2013/14 financial year, despite the intense competition in the mortgage market. 

Head of intermediaries at Suncorp Bank, Steven Degetto told Australian Broker that brokers have been critical in helping the bank crack markets outside of Queensland. Forty-two per cent of the bank’s home lending portfolio originated outside of Queensland at June 2014.

“Our broker partners have played a particularly important role in our customer acquisition and portfolio diversification strategy outside of Queensland, supporting our expansion into key growth corridors over recent years.”

Looking to the future, Degetto says the bank will continue to refocus its growth efforts in its home state of Queensland, as well as further growing its business nationally, by offering a genuine alternative to the major banks. Brokers are an important part of this growth and diversification strategy, and the bank will continue to invest in their brokers, according to Degetto. 

“We’ve recently further simplified our commission structure, and over the coming year we’ll continue to invest in the channel and evolve our business.  We’ll continue to look at the best possible ways to engage with our broker partners and encourage the development of long-term partnerships.

“We know some brokers are looking at diversifying their businesses, with SME and commercial markets increasingly becoming an area of opportunity and interest. Suncorp Bank will continue to look at how to best partner with brokers on this front.

“The delivery of the Bank’s new banking platform, Project Ignite, remains a key priority and will improve the way the Bank conducts business and meets the needs of our broker partners and customers.”