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EXCLUSIVE An overwhelming majority of Australian borrowers prefer face-to-face communication with their broker, despite the rise of videoconferencing in the past two years.
One silver lining from the pandemic-induced lockdowns was the rapid adoption of videoconferencing, which helped Australians working from home remain connected.
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While some industry leaders saw this as an opportunity for brokers to broaden their geographic footprint, consumers prefer traditional channels of communication. This could ultimately curtail some brokers’ plans to expand beyond their local community.
The Consumer Access to Mortgages Report, an annual research initiative conducted by independent research firm Momentum Intelligence on behalf of The Adviser, asked 450 borrowers between January and April 2021 which channel they would prefer to use with a broker or lender.
In person was by far the preferred channel, with 65 per cent of borrowers saying they would prefer to see a broker face to face and 70 per cent preferring to meet a banker in person.
Phone calls were the next preference for communicating with brokers (53 per cent) but only 38 per cent chose to get the bank on the phone as a first choice.
Similar results for email, which was the preferred choice for 52 per cent of broker customers but only 38 per cent of bank customers.
The ability of lenders and brokers to adapt in the face of disruptions of the COVID-19 pandemic has led to an increase in virtual and remote communication methods being relied upon due to restrictions. However, this year’s survey results found that only 32 per cent of broker customers prefer to use video calls. Only one in four (25 per cent) of bank customers said video calls were their preferred option.
“With the closing of many bank branches across Australia, there is an opportunity for brokers to provide that level of service to proprietary channel customers to give them the service they need via the communication method they value the most,” the report noted.
“Communication is a critical element of customer service and ensures that the prospective borrower understands what’s required, what’s next and what’s ahead.
“This year’s survey results indicate that brokers provide significantly better levels of communication compared to their proprietary channel counterparts.”
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