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Bank’s quiet launch into broker channel praised by tech provider

by James Mitchell4 minute read

Australia’s leading electronic lodgement provider has supported one mutual bank’s strategy to enter the third-party channel.

The decision by Victoria Teachers Mutual Bank (VTMB) to distribute home loans through the broker channel signals healthier competition in the industry, additional products for brokers and greater choice for consumers, NextGen.Net sales executive Michelle Ewens says.

Ms Ewens’ backing comes amid NextGen.Net’s role in steering the mutual through its ApplyOnline set-up.

“Late 2015, we did a quiet rollout versus a full-on announcement to ensure we didn’t over-promise,” VTMB executive manager sales and service, Justine Ward, said.

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“VTMB’s slowly, slowly approach to its entry into the broker market is a carefully considered strategy driven by a commitment to facilitate the best possible broker and borrower experience,” Ms Ward said.

“We want to give ourselves time to ensure our processes, systems and solutions are correctly established. We’re intent on paving the way for the delivery of best practice for brokers.”

Inherent in VTMB’s best practice promise is the implementation of the ApplyOnline multifaceted electronic lodgement tool.

With 96 per cent of brokers in the Australian market using ApplyOnline, Ms Ward said signing up with NextGen.Net was the obvious choice.

VTMB’s ApplyOnline rollout began this month.

The mutual bank is not the only lender to take a more considered approach to third-party distribution. Virgin Money Australia recently re-entered the broker market through an exclusive agreement with PLAN Australia.

[Related: PLAN to distribute Virgin Money mortgages]

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James Mitchell

James Mitchell

AUTHOR

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

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