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White-label: a growing industry for brokers and beyond

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Brett Halliwell 4 minute read

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The mortgage industry is increasingly recognising the benefits white-label home loans deliver to clients and brokers. As the popularity of white-label continues to grow, there has been a distinct shift from a niche option to a mainstream choice, recognised for high quality and value-for-money. The story is one that is resonating across industries, and not just in the broker channel. We wanted to share what we’ve learned from looking at white-label success stories across industries.

The mortgage industry is increasingly recognising the benefits white-label home loans deliver to clients and brokers. As the popularity of white-label continues to grow, there has been a distinct shift from a niche option to a mainstream choice, recognised for high quality and value-for-money. The story is one that is resonating across industries, and not just in the broker channel. We wanted to share what we’ve learned from looking at white-label success stories across industries.

1. Consumers are demanding white-label solutions

Demand for white-label is rapidly gaining momentum in the broking industry and beyond. A 2016 Canstar Blue study shows 65% of consumers are now buying white-label grocery products over big-name brands. In fact, almost half (49%) of shoppers are choosing supermarkets based on their low-cost options[1]. This strong growth is replicated in broking – with over 85% of brokers already offering white-label to their clients[2]. Coles has recognised the power of white-label, with the super-market giant continuing to invest in its ‘Coles Brand’ range. Coles Brand has gained a reputation for being a quality, low-cost alternative and is increasingly gaining market share. Over the past four years Coles has won more than 500 awards for its Coles Brand range, and has been recognised as having top rated products for supermarket staples[3]. The example resonates in the mortgage broking industry, with Advantedge investing heavily to develop an innovative and high quality white-label product, making an Advantedge loan a ‘staple’ for many Australians. The NPS score of +48 across its brands, a figure well above the industry satisfaction standard, demonstrates its success in developing a top-quality product.  

2. White-label solutions: evolution from ‘cheap’ to ‘good-value, quality’ products

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There has been a broad shift in consumer attitudes toward white-label, with more than three-quarters of customers seeing white-label as the smart alternative that delivers the same quality without the brand name and associated cost[4]. For example, in the pharmaceutical industry generic brands are increasingly gaining market share from their well-known alternatives. When the trusted pharmacist advises customers they can get the exact same product at a lower price if they forgo the brand name, savvy consumers are more likely to opt for the generic version. In the same way, brokers are in a powerful position to be the trusted adviser for customers and educate them about what white-label is, and how it could save them money. With customer appetite growing, there has never been a better time for brokers to tap into the opportunities of white-label and offer customers an exclusive, quality product that is not available via a different channel. 

3. Low cost does not mean low service: white-label providers deliver strong support

According to research from IBISWorld, white-label accounts for 30% of supermarket brands, and is expected to grow to 35% by 2020-21[5]. These high numbers show the development of white-label is a business priority for big brands, and will continue to be an integral part of business growth - clearly those who invest the times and resources in getting it right are likely to reap the benefits. At Advantedge, we are committed to ensuring low cost does not compromise our commitment to high quality support and service, and constantly work to enhance and simplify our processes. This is evident through brokers rating our BDMs 9-out-of-10 for overall satisfaction with quick responses and willingness to help being some of the most valued traits. We ensure broker satisfaction by providing access to dedicated scenarios teams and credit managers with delegated credit authority and through first touch unconditional approvals. We further embrace the power of technology through our ApplyOnline system and automated valuations. To support brokers in owning client relationships, we also looked long-term, and introduced our Mortgage Rollover Program which proactively alerts brokers of milestone events in their customers’ lives which could be an important trigger for a necessary broker-customer conversation. Between April 2016 and January 2017, this program has helped us connect brokers with 4062 customers and save them $85.2 million worth of loans! In today’s high-cost world, consumers are actively looking for value-for-money and excellent service.  If a broker meets these needs they will maintain and grow the customer relationship for the life of the loan and beyond.

The numbers speak for themselves when we discuss the growth of white-label in the mortgage broking industry. Advantedge accounts for more than six per cent (6.6%) of market share in the third-party channel and is often ranked four-to-five on aggregator panels – demonstrating that customers increasingly want a white-label solution. This strong positioning is a testament to our commitment to quality product, outstanding service, and demand from consumers across industries for high-quality, low-cost products.

 

[1] http://www.canstarblue.com.au/food-drink/stores/supermarkets/private-labels-vs-brand-names/

[2] http://www.yourloanhub.com.au/2017/02/28/more-than-meets-the-eye-white-label-loans-are-more-than-a-good-price/ 

[3] https://www.coles.com.au/about-coles/annual-reports

[4] http://www.canstarblue.com.au/food-drink/stores/supermarkets/private-labels-vs-brand-names/

[5] https://www.ibisworld.com.au/industry-trends/market-research-reports/retail-trade/food-retailing/supermarkets-grocery-stores.html

White-label: a growing industry for brokers and beyond
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