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More than a quarter of brokers now outsource their loan processing, according to a new survey from NextGen.
Technology provider NextGen has released a new report outlining how brokers are using the lodgement platform ApplyOnline® and how the platform can be improved.
The 2025 Industry Insights Report commissioned by NextGen – the company behind the ApplyOnline platform – was undertaken to better understand how the technology platform is perceived in the industry, how it is used, and how brokers believe it can improve.
Conducted by Agile Market Intelligence between 18 July and 2 September 2024, the researchers surveyed 703 mortgage brokers across Australia to understand sentiment and usage of the lending technology platform, which is used by more than 60 lenders.
It received around 1,778 pieces of qualitative feedback from the survey.
According to the Industry Insights Report, 94 per cent of brokers use ApplyOnline monthly, with 71 per cent of users satisfied or extremely satisfied with its features, reliability, and usability.
Brokers flagged they were particularly satisfied with its straightforward navigation, clear error prompts, and effective data integration with customer relationship management (CRM) systems.
However, users also raised areas for improvement, particularly regarding:
- Document management (such as documents not being transmitted properly to lenders or the need to repeatedly upload).
- Support and training (requesting real-time support and more training materials).
- System restrictions or limitations (such as fixed data entry fields, inability to override certain validations, and limitations in handling complex scenarios).
Speaking to The Adviser on the In Focus podcast, Renee Blethyn, head of broker partnerships at NextGen, said: “It was such a delight to read the positive comments... and the areas for improvement are the opportunity for the business.
“What we saw with our survey is that we have an incredibly engaged audience that does trust our platform, however, has some really clear feedback on things that they would love to see us improve or consider to make their lives easier and to enable them to deliver a better experience to their customers.
“One that’s really important and was really consistent, and that is that brokers want consistency across lenders, which they find really challenging... The sentiment from brokers is they want as much harmonisation as possible when it comes to that lodgement experience and we do our best to try and communicate that, as well as the benefits of implementing services that make that process as seamless as possible and as consistent as possible.”
Brokers outsourcing loan processing
The study also quantified the growing trend of brokers bringing in support to handle loan processing.
While just over 73 per cent of brokers said they handled loan processing themselves, more than a quarter (26 per cent) said they outsourced this responsibility.
Almost half of all delegating brokers (46 per cent) outsourced their loan processing to a third party, with 57 per cent choosing aggregator-nominated outsourcing providers. According to the report, brokers may be largely choosing aggregator-nominated outsourcing providers to “provide a layer of operational consistency, allowing brokers to rely on pre-vetted partners who understand the compliance, speed, and documentation standards required”.
Of those that outsource, 34 per cent employ an overseas provider (with large businesses more likely to use an offshore provider), with 11 per cent using Australian-based services.
The research also said that operational strategies evolve as businesses scale, with larger businesses firms nearly twice as likely to delegate loan processing tasks compared to smaller operations.
For example, it found that 60 per cent of brokers in large businesses (employing more than 20 people) delegated loan application tasks, compared to 35 per cent in small brokerages.
The report said: “The structure of broker businesses is changing. As demand for responsive, tailored lending advice grows, many brokers are restructuring operations and investing in support systems that free up their time to focus on client outcomes. Rather than doing it all themselves, brokers are increasingly adopting a team-based or outsourced model.
“As businesses grow, roles such as loan processors, client service managers, and parabrokers become more common. These support roles allow brokers to scale without compromising service quality.
“This research confirms brokers are becoming more strategic about operations.
“The most successful brokerages recognise the value of delegation and technology adoption. By outsourcing routine processing, brokers can focus on expert advice and client relationships.”
NextGen said that it would continue to run the Industry Insights Report to gain ongoing feedback and have “open dialogue” with brokers on how they use NextGen’s tools.
NextGen said the findings have triggered immediate action from NextGen, including enhanced workflows and expanded training initiatives, prioritising open banking access, enhancing platform functionality, and launching broker-focused UX improvements. It has also expanded educational content through a new website, CPD-accredited webinars, aggregator partnerships, and mentoring support.
You can find out more about the survey and its findings in The Adviser’s In Focus podcast.
Tune in to the episode, ‘How broker feedback is shaping ApplyOnline’, sponsored by NextGen, here:
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