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Brokers write 90% of ING Direct’s mortgages

by Huntley Mitchell4 minute read
Mark Woolnough

ING Direct Australia has attributed much of its double-digit growth in branded mortgages to brokers, while the bank’s commercial loan portfolio has also seen significant gains.

The non-major’s overall mortgage volumes grew by 2.6 per cent to $39.8 billion in the 2015 calendar year, with its branded mortgage volumes experiencing a 10.8 per cent increase.

Mark Woolnough, head of third-party distribution at ING Direct, said much of the mortgage growth was due to its broker network.

“Mortgage brokers are absolutely critical to our business, responsible for nine out of every 10 ING Direct mortgages,” Mr Woolnough said.

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“We’ve been working with brokers for more than 16 years, and we continue to nurture these relationships with great value-driven products and fair and transparent remuneration.

“I’m confident the broking channel will continue to grow beyond its current 52 per cent market share, as its role in driving consumer choice and value is increasingly recognised across the industry.”

ING Direct’s focus on diversifying its loan portfolio has also paid off, with the bank increasing its commercial portfolio by more than 17 per cent last year.

“The appetite for commercial property is definitely growing, and we see a huge opportunity not only for our business, but for investors and for brokers, [by] diversifying risk and sustainably building business,” Mr Woolnough said.

The bank posted a net profit after tax of $314.7 million for the 12 months to 31 December 2015 – a 6 per cent increase on the previous year.

ING Direct’s outgoing CEO, Vaughn Richtor, said he was immensely proud of what ING Direct had achieved since its launch in 1999.

“Our business model challenged how banking was done and while some doubted we would succeed, the provision of value for money products and exceptional customer service has proved a winning formula,” Mr Richtor said.

“Creating the right culture in an organisation is the best way of ensuring the business does the right thing by the customer.”

[Related: ANZ closing branches with firm eye on broker channel]

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