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AFG’s general manager of sales and operations, Mark Hewitt, shares his thoughts on specialist lending and the likely impact it’s going to have on the third-party channel this year.
What opportunities will specialist lending present to brokers in 2016?
I think 2016 will be the year of maximising our opportunities and specialist lenders offer a viable alternative for borrowers who do not qualify with a mainstream lender.
Futurists are predicting the gap in Australian society between the ‘haves’ and the ‘have nots’ will continue to grow, so being able to offer a solution which enables brokers’ clients to restore their credit history whilst achieving their property goals makes obvious business sense for brokers.
How have you educated your brokers about the specialist lending proposition?
We run state and regional PD days in conjunction with our specialist partners, and regularly emphasise the benefits with our members.
How much has your business grown through specialist lending?
That is difficult to quantify, but they form a valuable part of a lending panel that has helped AFG brokers grow volumes by $29 billion over the past 10 years.
What would the impact be on your customers and your business if you didn’t use specialist lenders?
I would expect specialist lenders to account for up to five per cent of our volume in the next couple of years, so it would be significant.
Has specialist lending lifted your conversion rates over the past 12 months?
Again, difficult to precisely identify, but there is little doubt they would be lower if we did not have this string in our bow.
Would you say specialist lending gives brokers a competitive advantage?
Maybe three or four years ago, but as this form of lending has become more and more widely accepted by brokers, it is more a case of it being a competitive disadvantage not to use a specialist lender.
