Australia’s big four banks are under the spotlight as brokers have their say on how the majors are performing when it comes to mortgage lending and third-party service.
The Momentum Intelligence Third-Party Lending Report: Major Banks 2017, the latest survey forming wider research into third party sentiments on Australia's lending institutions (including mutuals, non-major banks and non-banks), comes at a critical time in Australian mortgage lending.
The last 12 months have been challenging for the big banks. Rising funding costs have continued to pressure margins, leading to pricing changes towards the end of 2016. Meanwhile, regulatory measures and higher capital requirements are forcing the big four to tweak their policies.
Brokers are now being asked for their thoughts on which lenders have continued to deliver excellent product and service, and which lenders have communicated the myriad changes best.
“In recent months, the pendulum of mortgage lending has swung away from the big four and towards the smaller lenders,” Momentum Media’s James Mitchell said.
“According to the latest AFG Competition Index, broker-originated major bank mortgage sales slipped by 8.1 per cent in the final quarter of 2016 to 64.1 per cent of the market,” Mr Mitchell said.
“This is the lowest level of major bank market share since the GFC,” he said.
In last year’s Momentum Intelligence report, Westpac fared the best in terms of the impression it’s making on the third-party channel. Brokers ranked Westpac first overall in 2016, while CBA ranked second, followed by ANZ and NAB.
Each bank obtained a higher total score than 2015, with ANZ recording the greatest improvement overall.
In 2016 all banks saw an improved score in the overall technology category, compared to the previous year, with brokers impressed with the big four’s web presence, online application status tracking and valuation ordering online.
“Brokers have the opportunity to once again rate the biggest banks in the country on their home lending offerings,” Mr Mitchell said.
“We’d be grateful if you could spare a few minutes of your time to complete our survey. Your feedback will play an important role in helping the major banks improve their third-party offerings for all mortgage brokers.”
The key findings will be revealed in an upcoming issue of The Adviser magazine, and on www.theadviser.com.au.
This survey will close on Friday, 24 February 2017.
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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