Lender reports 2,000% increase in broker originated loans

by Madison Utley14 Aug 2019

A personal lender saw $200,000 in originations in the month following the launch of its broker channel in June 2018. Now, a year later, the channel averages $4m in lending each month – a 2,000% increase.

SocietyOne has experienced 62% growth in loan originations since the introduction of the broker channel, passing $650m in overall lending. It took just eight months to reach $10m originated via the broker channel, as compared to the 47 months required for direct-to-consumer to reach the same figure.

The first half of 2019 came in with cumulative originations of $24.7m as compared to the $9.5m total originations recorded in the second half of 2018 –  a 260% half-on-half increase.

The digital broker delivery channel at SocietyOne has been designed to specifically address new considerations presented by the post royal commission environment, which has “fundamentally changed” how consumers engage with mortgage brokers. 

“Our platform helps brokers remain compliant with responsible lending guidelines – incredibly important following the royal commission. It does this through simplicity of engagement and by providing a final, unequivocal rate,” said CEO Mark Jones.

“This is where trusted human relationships converge with the convenience, simplicity, speed, and accuracy of technological innovation.”

After its first year of operation, the broker channel makes up approximately 30% of the SocietyOne loans written each month.

The personal lender partnered with a broker aggregator to build its unique third party channel.

“The whole process was built from the ground up by brokers, for brokers,” said Jones.

“Our broker channel has helped brokers remain relevant, valuable and competitive – and redeem their place in a challenging post-royal commission lending environment,” he added.

Last week, SocietyOne was named in the AFR's most innovative banking, superannuation and finance companies. Taking the ninth spot, the lender ranked just above Westpac, one of its investors.