Anthony Waldron and Steve Kane of NAB tell Australian Broker how the customers brokers bring to them are superior to many other sources.
Video transcript below:
Reporter: With Phil Naylor’s announcement at the MFAA that now half of mortgages originate through a broker, are banks recognising their value. Anthony Waldron says that NAB certainly are.
Anthony Waldron, Executive General Manager, Growth Partnerships at NAB
Anthony Waldron: From a NAB perspective we see that being in the broker market becomes absolutely essential because that’s what customers are choosing. More and more customers are choosing to come to brokers. And we are seeing that obviously on the residential side, a little over 50% of flow of mortgages now coming from, through broker channel, commercial growing quite substantially as well and we see that as a huge opportunity that we need to be a part of. We are invested in the old challenged business and turned it into the advantaged business near on five years ago now, probably the best acquisition we have ever made and we are starting to see the benefits of that and we continue to invest in that.
People often ask you know to the banks are you committed to this part of the business as a channel. I think that’s a real change that they have to go through, because we are not just committed to the channel, it’s completely core to what we do as a bank and we see that there is going to be continued growth and we have to play a part in that. We want to be a healthy industry to grow, we want to be part of that growth and we want to continue to invest in that because more and more customers are going to choose to come to brokers and so as a core thing to us we have got to help that, we have got to make it grow because it’s such a big part of our business.
Reporter: Another reason behind this is the quality of business brokers bring.
Anthony Waldron: The business introduced by brokers is as good if not better than anything that we are getting from any other channel that is there. So you know those notions that could ever be there around the business coming from broker is not good is just a fallacy. The business which we get out of brokers is much cleaner and we think that’s going to be part of the future.
More and more customers are going to continue coming to brokers, the business which we get from brokers is of higher quality. The average length of time that someone has been in the industry when they are a broker versus potentially someone who is newer to the industry where they are working of the frontline in a bank, there is a big difference. So the quality that you see coming from the brokers is high. So we want to make sure that we get in there and invest in the business and help it grow.
Reporter: Steve Kane of NAB Broker says that the metrics around the customers brokers bring speaks for themselves. But they also reveal some other facts.
Steve Kane, General Manager, NAB Broker
Steve Kane: The metrics we look around in terms of the performance of the portfolios and that’s obviously the delinquency performance, we look at the quality of the customers, we look at average loan sizes, we look at loan life, we look at the way in which the type of customers we are getting and what we are seeing is that, and as we know that yesterday Phil has announced we have nearly, Phil Naylor has announced we have nearly got to 50%, so one in every two mortgages is done through a mortgage broker.
We have recognised that those customers are seeking that advice and more will do so are generally more affluent, but what we have seen is that there is an increased usage of the services of brokers outside mortgage lending as well. So when I say we want to bring to bear some of the fantastic things that NAB can offer, it might be around commercial lending, it could be around small business lending and things that we will do in the future to assist the broker channel to make sure they take opportunities to do all the services, provide all the products that their customers need.