National Australia Bank is testing an online mortgage channel in an effort to broaden the scope of its online savings platform for its clients.
NAB’s online savings bank, Ubank, was launched in 2008 in order to capture a bigger share of retail deposits. However, it is now lagging behind Commonwealth Bank and Westpac.
In response, NAB has turned up the heat on its Ubank and is testing the platform with clients in regards to offering basic mortgages.
NAB’s group executive in personal banking Lisa Gray said that a broader online platform that can provide a no-frills mortgage product will give customers flexibility.
“We can provide the full service in the NAB brand, which has a whole range of things and is priced that way. But if you just want to come online and get a better rate you have Ubank,” Ms Gray told the AFR.
Ms Gray rejected the view that NAB is simply looking to compete on price and branded the new trial as “a long term strategy”.