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Credit union sees increase in broker flows

by James Mitchell4 minute read
Credit union sees increase in broker flows

Mortgage brokers were responsible for originating just over $500 million in new lending for credit union CUA over the six months to December 2017.

CUA issued a total of $1.28 billion in loans during the period, including $1.18 billion in home loans and $121 million in personal loans.

CUA national manager of intermediaries Natasha Kelso said that the broker channel had contributed around 43 per cent to CUA’s total mortgage lending for 1HFY18.

“It is really important to CUA that we are providing members with a choice of channels for obtaining home loans and brokers continue to be an important part of that mix,” Ms Kelso said.

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“Broker-originated lending was $502 million during the first half of FY18, a significant improvement on the same period a year earlier when it accounted for around $370 million, or 32 per cent, of CUA’s mortgage lending.”

Broker-originated lending accounted for just over 40 per cent of all CUA lending in the last financial year (FY17).

Ms Kelso said that it had been a good year for CUA’s broker relationships, with new initiatives helping to boost the performance of the channel.

“In July 2017, CUA expanded its offerings to include AFG as an additional broker partner and we’ve been steadily onboarding brokers as part of that relationship,” Ms Kelso said.

“CUA also signed up to be featured on uno Home Loans panel of lenders, which is recognition of the importance of CUA being represented in emerging digital mortgage platforms.”

Ms Kelso said that a key focus for the lender has been ensuring broker-introduced customers have a positive onboarding experience with CUA.

The group recently created a dedicated Broker Member Specialist role to reach out to broker-introduced customers and connect with them as part of them joining CUA.

Ms Kelso said that the group has received positive feedback about the initiative.

[Related: Credit union could break into business banking]

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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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