Unknown banks become popular


The outcome is reported in the Momentum Intelligence’s latest Broker Pulse, Momentum Media’s research arm.

Every month, the report looks into the combined lending practice of residential mortgage brokers to help them offer helpful information to its customers.

According to the current poll, which collected 252 responses from Broker Pulse members throughout November 1 and November 12, 2021, brokers are generally choosing smaller banks for its customers.

Also according to statistics, 90 percent of traders referred a mortgage to at least one non-primary bank in October. This represents a considerable increase from the previous month’s record of 79 percent, and it is the maximum position since May 2021.

Macquarie Bank is the most preferred small bank in this area, with 39% of brokers polled saying that they used the bank in the preceding month.

As the proportion of brokers using non-majors grows, fewer brokers are going to large banks for their clients.

According to the Broker Pulse study, 73% of brokers used the Big Four banks in October, continuing a downward trend that began in July 2021. (when 80 percent used a large bank).

Despite the Commonwealth Bank of Australia (CBA) remains the most popular lender (44 percent of brokers gave a loan to the bank in October) and ranking third in the average number of loans per broker, the decrease happens (at an average of 2. 1 credit per broker). Brokers sent an average of 8.8 loans to all lenders in October.

According to broker replies, three major banks reduced order processing times in October, with only NAB witnessing a slight increase in wait times (from 6.5 days in September to 7.4 days in September).

Meanwhile, the percentage of brokers who utilize non-bank lenders has stayed at 59 percent for the third month in a row.

“We observe fluctuations among lender sectors on a regular basis,” said Michael Johnson, Chief Strategy Officer at Momentum Intelligence, “but what’s interesting is that large banks in general are performing fairly well right now.”

“We’ve seen these lenders in the past with really long turnaround times and terrible brokerage experiences, but they’re now performing far better, but they still appear to have lost some attraction when compared to smaller banks.”

“At the present, this is obviously a competitive sector, and non-major organisations continue to offer a diverse variety of borrowers and brokers.”

The findings of the Broker Pulse confirm the findings of the current Australian Financial Group (AFG) index, which found that significant firms had lower broker traffic in the first quarter of fiscal year 22.

According to AFG figures, the market share of the big four banks and their connected brands fell 2.0 percent in the first quarter of the fiscal year to 57.3 percent.

The Westpac Group was the greatest loss, falling from 22.7 percent to 15.0 percent of the market. All other major banks, on the other hand, increased their market share.

The market share of non-financial lenders increased from 40.7 percent to 42.7 percent in the quarter, thanks to ING (which increased its market share from 2.82 percent to 3.28 percent) and Suncorp (which expanded its market share from 2.75 percent to 3.18 percent).

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