Powered by MOMENTUM MEDIA
the adviser logo
Lender

‘Brokers have to expand their offering’, says SME lender

by Reporter4 minute read
Money

The head of sales of a small business loan specialist has said that brokers “have to expand their offering” to cover resi and commercial writing as competition in the industry increases.

Michael Burke, the head of sales at OnDeck Australia, has said that he expects a growing number of brokers to move into alternative lending, in addition to the move from residential to commercial lending, due to increased competition in traditional markets and as a means of revenue diversification.

Noting that a “growing number of traditional mortgage broking houses” were looking at product diversification due to increased competition in the industry (for example, Aussie, Connective, FAST and PLAN have all added asset finance to their bow), Mr Burke said: “As a result, brokers have to expand their offering to include residential, commercial, asset, equipment finance and more.”

Mr Burke added that fintechs such as OnDeck also benefit from fast turnaround times. 

Advertisement
Advertisement

“Brokers are not only looking to move into online lending because of the speed and ease of doing business it offers, but because their time-poor customers are demanding a more convenient solution involving faster turnaround times.”

OnDeck has said that it is now seeking alliances with commercial loan brokers, mortgage brokers and other business finance brokers to offer unsecured small business loans via their broker platforms.

“We would like to continue to provide an online lending solution to small business owners by expanding our industry relationships,” Mr Burke said.

He concluded that the company will be bringing in more BDMs and account managers in 2018 as part of its plans to “strengthen its broker offering”.

[Related: SME lender keen to deepen partnership with brokers]

 

dollar hand

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

Stephen Hale ta

MFAA launches near-prime, specialist loan resource

Coined Finance for when your customer doesn’t fit the mould: A broker’s guide to near-prime and...

READ MORE
Daniel Newell Gedda

Specilalist lender LoanU rebrands to Gedda

The personal and auto loan provider LoanU, which specialises in helping Australians with impaired credit histories...

READ MORE
tech tools

CBA introduces AI technology to combat scams

New figures released by the competition watchdog this week have revealed that Australians lost more than $2 billion...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more