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We want everyone to access our great rates, not just members of industry super funds, unions and employer associations
ME Bank opened up access to our record-low home loan rates for all Australians.
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Brokers requested we remove the requirement to be a member of a union or industry super fund to access our discounted rates, and we responded by rolling out this change in August 2014.
We want everyone to be able to access our record-low fixed home loan rate, not just members of ME Bank’s associated industry super funds, unions and employer associations.
ME Bank’s home loans were the last remaining product with an exclusivity requirement – the bank removed restrictions on accessing its special term deposit rates in 2013.
The decision effectively doubles our home loan target market as we seek to triple our customer base by 2020. It is also worth reminding brokers that unlike other banks, ME Bank isn’t trying to be all things to all customers. We have a specific target market – everyday Australians who want a fairer home loan deal and are looking for a genuine alternative to the majors.
Solid results
ME Bank was established by industry super funds to provide genuinely fairer banking to industry fund and union members, but the bank equally applies its fairer ethos to brokers.
The principles of fairness and collective benefit are at the heart of our business and translate to low-cost, straightforward and transparent home loan products.
The last 12 months have been good to borrowers. Low interest rates, combined with ongoing low credit growth, have prompted record-low rate offers and other unprecedented discounting activity by banks.
There have been good opportunities for brokers to get existing borrowers a better deal and new borrowers a great start in their new life as home owners.
During this period, brokers helped deliver a 19 per cent increase in ME Bank loans – solid evidence that the bank’s fairer ethos, record-low home loan rates and professional service are striking a chord with brokers.
Looking ahead
In the year ahead, we are looking to increase and enhance our broker relationships and double home loan sales through this valued distribution channel. We will continue to ask brokers what they want to see from us – and to act upon it.
We listened this year, when brokers told us to introduce additional business development managers, credit support resources and processes to improve turnaround times and broker support.
We also listened when brokers told us to introduce further ways to interact with them online. A dedicated broker website, a text messaging service, and improved electronic portals such as NextGen have all been introduced based on broker feedback.
We understand that simple and efficient products and services are extremely important to brokers and customers. That’s why the bank has invested in a $70 million technology transformation program, due early 2015, which will unleash a suite of product and service innovations and improve our capacity, capability and efficiency.
Broking is such an important channel, with banks able to reach borrowers due to brokers’ skills, experience and the trust they have from customers. ME Bank re-entered the broking market close to three years ago because research we conducted showed up to half our target market said they would use a broker in the future.
Already, the channel is one our biggest sources of borrowers.
Since establishing our broker offering in December 2011, the bank has partnered with 17 of Australia’s aggregation groups and accredited more than 5,000 brokers. These relationships have been mutually beneficial, and we thank brokers for their loyalty and ongoing support.
For more information, call your local business development manager or visit mebank.com.au/broker.
Stewart Saunders, national manager, brokers at ME Bank
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