Macquarie Bank has revealed it will continue to bolster its share of the Australian mortgage market through its relationships with brokers and white label partners.
In an operational briefing last week, the bank highlighted its ability to develop relationships with brokers and white label mortgage partners as a key strength.
Macquarie noted that its strong intermediary relationships were the result of “skilled BDMs with a high touch approach”.
The lender has entered into white label agreements with Mortgage Choice, Real Home Loans and Homeloans Ltd and highlighted its further investment in Yellow Brick Road through the acquisitions of Vow and Resi as evidence of its commitment to an aggressive third-party play.
Vow Financial chief executive Tim Brown said the aggregator’s new ownership, under YBR, has aided growth.
“They are very supportive of the strategy and the culture and they want to see that continue,” Mr Brown told The Adviser.
Macquarie is the funder behind YBR’s white-label home loans, which have recently been re-labelled as Vow Home Loans, Mr Brown explained.
“Obviously we see the benefits of selling some of their other products such as the white-labelled product that is now called Vow Home Loans which we are starting to sell,” he said.
YBR’s strategy is to build size and scale through subsidiary brands such as Vow and Resi.
“We are using that scale and size to get better pricing on products, which is what we have achieved through our relationship with Macquarie,” Mr Brown said, adding that Macquarie has also partnered with the YBR group to distribute wealth products.
“All those things over time will give our brokers better products that they can sell to their clients,” he said.
Mr Brown pointed to Aussie’s acquisition of nMB as a similar example of a branded group looking to build scale.
“I have no doubt others will try and replicate that success,” he said.
However, Vow’s relationship with YBR goes both ways, Mr Brown added.
“Commercial and leasing is an area where YBR wants to grow and we are already growing that quite considerably,” he said.
“The wealth component is something they bring to the table and they do extremely well, so we are looking to use their expertise and their knowledge there.”
In September last year, Vow announced the appointment of financial planning veteran Michael Clifford as its new head of wealth management.
“He is now working with a number of our brokers to help set up financial planning in their businesses,” Mr Brown said.
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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