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Bank bracing for ‘busy’ season through broker channel

by Charbel Kadib5 minute read

A non-major bank is preparing for an anticipated spike in home loan volumes over the coming months by bolstering its service proposition for mortgage brokers.

Adelaide Bank is “gearing up” for a “very busy” spring season, with the lender expecting a spike in demand for home loans in light of recent improvements in property market indicators.

According to the latest Lending to Households and Businesses data from the Australian Bureau of Statistics (ABS), the value of home loan approvals increased by 5.1 per cent (seasonally adjusted terms) in July – the largest monthly increase since March 2015.

The latest property price data from CoreLogic also revealed that national home values increased by 0.8 per cent in August – the first monthly increase since April 2017.

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According to analysts, the improvement in market sentiment has come in response to public policy certainty, the Reserve Bank of Australia’s (RBA) back-to-back cuts to the cash rate in June and July, and the Australian Prudential Regulation Authority’s (APRA) changes to its lending guidance.

Adelaide Bank’s head of distribution, Amanda James, said the lender has prepared for the expected increase in home loan volumes by bolstering its service proposition in the third-party channel.

“We’re gearing up to give 100 per cent in terms of the service brokers can expect this spring, with early property market indicators suggesting that it will be a very busy season,” she said.

As part of the strategy to enhance its presence in the channel, Adelaide Bank launched new white label partnerships with broking franchise Aussie Home Loans and mortgage aggregator Connective.

The bank also cut mortgage rates across home loan products offered exclusively through the broker channel.

Further, the bank expanded its third-party distribution team, with plans to make additional appointments in the near future.

“We know that the Adelaide Bank team can cement and significantly grow the business we write through our partner networks,” Ms James continued.

“Our teams have been strengthened and better resourced – not just in the Sydney and Melbourne markets, but with enhanced servicing nationally now available to provide the responsiveness and proactive service that brokers demand – no matter where they are based.

 “We’ve also expanded our footprint to be able to deliver a more personalised service to our brokers, with four new [BDMs] in NSW alone, bringing growth in our national relationship team numbers over the winter months to 12 – with two further appointments to be announced soon in Perth and more BDMs across the east coast planned in coming months.”

Ms James concluded: “In addition to building our own capacity and growing the Adelaide Bank business, we’re committed to helping brokers build their businesses too, with a series of webinars and other program to help brokers achieve success.

“Together through our partnership, we’re firmly focused on delivering great outcomes to help borrowers achieve their goals.”

Last month, Bendigo and Adelaide Bank released its full-year results for the 2019 financial year, reporting mortgage portfolio growth of 3.5 per cent to $37.7 billion as of the end of June 2019. 

Third-party-originated mortgages made up 42 per cent ($16.8 billion) of its portfolio, with loans originated by mortgage managers accounting for $12.6 billion and those originated by mortgage brokers accounting for $3.9 billion.

 [Related: Neobank outlines support for broker channel

 

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Charbel Kadib

Charbel Kadib

AUTHOR

Charbel Kadib is the news editor on The Adviser and Mortgage Business.

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