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Are non-bank BDMs the best for brokers?

by Staff reporter5 minute read

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.

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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.

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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.

[Related: New third-party structure for mortgage business]

Are non-bank BDMs the best for brokers?
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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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