Provisional results from Momentum Intelligence's Third Party Lending Report: Non-Bank Lenders 2017 show that brokers rate non-bank BDM's higher than their banking equivalents.
Provisional results for the current research focused on non-banks show their BDM's receiving a score of 4.01 out of 5.
By comparison, major banks' BDM's received an overall score of 3.93 out of 5 in research conducted in March 2016, while non-major bank BDM's received a score of 3.91 out of 5 in research conducted in July 2016.
“While these results are provisional, they indicate that non-bank lenders recognise the important role that BDM's play with brokers in the third-party channel and are striving to ensure their BDM's deliver the best outcomes possible for brokers,” Momentum Intelligence head of client services and sales research Andrew Scott said.
The Momentum Intelligence Third-Party Lending Report: Non-Bank Lenders 2017 will provide a comprehensive overview of Australia’s non-ADI sector. Now in its fifth year, the report will rank and rate the non-bank lenders based on a survey of Australian finance brokers.
The survey will see non-banks rated on product and pricing, range of product, turnaround times, BDMs, credit assessment staff, client support, training and education, commission structures and how likely respondents are to recommend a lender to another broker.
In addition, brokers will have the chance to rank their favourite specialist lender, mortgage manager, equipment finance lender, cash flow and debtor finance provider and short-term lender.
“The non-bank lending landscape has changed significantly with the emergence of new online players, particularly in niche lending segments such as SME and short-term funding,” The Adviser editor James Mitchell said.
“There is now a growing sub-group of alternative funders competing with non-bank incumbents for a greater share of broker-originated loans,” Mr Mitchell said.
“They’re leveraging technology to deliver solutions to broker clients, which has created a fresh competitive dynamic within the non-bank sector,” he said.
“Meanwhile, as the banks continue to tighten credit and pull out of certain segments of the mortgage market, the non-banks have stepped up to fill the gap. Anecdotal evidence tells us that more and more brokers are using non-bank lenders in today’s market.”
Have you used a non-bank lender recently? Rate their performance in the Momentum Intelligence Third-Party Lending Report: Non-bank lenders 2017 survey in partnership with The Adviser.