Non-bank lender GetCapital has relaunched its business overdraft product, available via the broker distribution channel.
The ‘bankless’ overdraft facility intends to provide businesses with access to flexible working capital, with online access to control transactions, and integration with any Australian business account.
GetCapital CEO Jamie Osborn told The Adviser that the product has been developed specifically to fill a gap in the broker market.
“Brokers have about 60 per cent origination share on asset finance products, [but] then if you look at something like overdraft, they've got essentially zero,” Mr Osborn said.
He explained that there are “a few reasons” for why a brokers’ ability to assist SME clients with securing bank overdraft facilities is currently inhibited.
“One is that the banks' processes require them to be intimately involved in the origination of an overdraft. In most cases they need to go and meet the client or bring them into the branch,” Mr Osborn said.
“And secondly, you know, the [remuneration] structure typically just doesn't work to incentivise the brokers appropriately for the work they do.”
Mr Osborn stated that the rollout of the new overdraft facility will see brokers better able to service their small business clients, and be appropriately rewarded for their work.
“So the opportunity, as we see it, for brokers is to really just take a much larger share of wallet of the customers that they already have within their portfolio,” he said.
“And it's really a product that they haven't really had access to before for [those] reasons.”
In order to support brokers in the distribution of the product to their clients, GetCapital has put together a “detailed broker toolkit”, which included a “comprehensive” guide and cheat sheet on how to discuss the product with customers, and discerning if it is the right product for them.
Mr Osborn noted that, in the fallout of the royal commission, brokers have turned their focus to diversifying their product offerings, to better support their business outcomes.
“I think we all realise, brokers and lenders together, that diversification is very important for the longevity and stability of the business,” he said.
“The overdraft product is, in part, the result of brokers looking for, and telling us that they're looking for, broader products that they can offer their customers.
“So that played out over the course of 2019 when we developed the product, and we've been actually quite surprised on the upside of the take up rate on the product.”
Following the initial launch of GetCapital’s overdraft facility in September 2019, the company provided over $50 million in limits via the broker channel.
Mr Osborn stated that the company decided to relaunch the product after making some enhancements to the offering, and changes to the pricing terms.
Additionally, Mr Osborn stated that the company “deliberately timed” the relaunch to coincide with the beginning of the Better Business Summit, which will be touring the country throughout February and March.
The roadshow commenced in Adelaide, and will continue in Perth on 20 February, before moving to, Sydney on 27 February, Brisbane on 5 March, and Melbourne on 12 March.
It’s not too late to grab your tickets to the Better Business Summit 2020, the peak event for the mortgage and finance broking community.
Partnered by NAB, this year’s theme is “Customer 20:20” and will have you walking away with practical ideas you can implement with immediate effect to reinvigorate and update the customer-centric offering of your business.
Make sure you don’t miss out by securing your ticket now.