As it prepares to roll out a new small business offering to brokers across the country, NAB has acknowledged the huge amount of commercial business mortgage brokers are generating for the group.
NAB Broker general manager Steve Kane told The Adviser that brokers now account for somewhere between 25 and 30 per cent of the bank’s commercial loans, including small business lending.
Mr Kane said NAB’s commercial lending piece has been increasing rapidly over the last few years.
“We think brokers are now accounting for somewhere between 25 and 30 per cent of that business,” he said, adding that brokers have a distinct advantage to capitalise on their existing customer base when looking to boost their commercial business.
"Twenty-five per cent of all broker-introduced housing loan customers are small business owners, so there is a natural affiliation when you look at a ‘whole of relationship’ concept that brokers have with their customers.
“That will continue to grow and follow the trajectory of the residential market in terms of how brokers service their customers," Mr Kane said.
NAB launched its commercial broker business two years ago and has been steadily ramping up its offering, recognising that small businesses are the engine room of the Australian economy.
While the major bank has been without a small business offering for brokers in recent years, Mr Kane explained that the group has been piloting one over the last couple of months with a small group of select brokers in New South Wales and Victoria.
“We're going to roll that out at the end of this calendar year to the wider market and it's really going to be providing small business with firm funding,” he said.
“It will primarily be backed by residential security but it will be that sub $1 million small business loan so we'll roll that out in the last calendar quarter of this year.”
[Related: MyState credits brokers for loan growth]
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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