Nearly two-thirds of a broker’s existing mortgage clients could be on a better offer, new data from loan book retention platform Stryd has found.
Approximately 65 per cent of a broker’s back book are not on the most competitive mortgage offer they could access, new analysis of broker trail books has found.
The findings came after the Stryd platform — a loan book retention tool built by Regchain™ — analysed over $147 million of existing trail book home loans from brokers to identify the customers that may be at risk of leaving them.
According to the platform, nearly two-thirds were on an uncompetitive rate, making them a flight risk. Brokers were therefore informed of what lender products these clients would be eligible for now that were more competitive.
By providing brokers with four more competitive offers per customer (based on lender rules engines), the platform said it had helped these brokers retain clients by improving their clients’ mortgage offering.
Ruth Hatherley, chief executive and founder of Regchain, explained that the finding was particularly pertinent as Australia is in the grips of a refinancing boom and a fixed-rate cliff.
She explained: “We are working with an increasing number of brokers, and our latest results have shown more than 65 per cent of broker trail customers are at risk of not being on the most competitive home loan product — so it seems the continual rate rises are materially impacting the broker customers.
“The industry is also telling us that loan book run-off rates are now as high as 35 per cent and brokers don’t have a way of checking which customers in their book are at risk, on scale.
“Brokers are telling us this is one of the most significant problems they need to solve and the feedback we are getting is that Stryd helps them prioritise their outreach to focus on customers to ensure they continue to be on the most competitive product available for them.”
By identifying better loan options for broker clients, the platform aims to provide borrowers and brokers with maximum return on investment for their time.
Speaking at The Adviser’s Better Business Summit in March 2023, Ms Hatherley shared a case study of a broker in Western Australia who had used Stryd and identified that 35 per cent of their customers in their back book were at risk because they were eligible for better products than they were currently on.
“What we were also able to identify from that record list was that we could get a better result on a further 28 per cent of clients if we just had some up-to-date information about that customer,” she said.
“So, that broker then had that number of leads that they could call for a specific reason; to get them a better deal.”