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New research from Great Southern Bank has revealed the majority of Australians believe brokers should provide more information on lenders’ ethics and values.
Customer-owned Great Southern Bank’s research found that 9 in 10 (or 90 per cent) of Australians believe that mortgage brokers should provide more in-depth holistic information on lenders, instead of just interest rates and terms of home loans.
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Respondents said they would like more information about a potential lender’s ethics, environmental commitments and social and community values, with 92 per cent indicating they would be more likely to choose a lender that performed in those areas well.
Of the respondents that have used a broker before, 45 per cent said they would have liked more transparency regarding a lenders’ ethics and values during the comparison process.
Over half (54 per cent) of those who used a broker said they were only provided information on lenders relating to costs such as terms and conditions and interest rates.
According to Great Southern Bank, the move towards socially conscious banking comes as sustainability becomes more important to consumers.
The customer-owned bank cited PWC research in 2022 which revealed 48 per cent of Australians preferred to purchase from businesses with strong company values and commitments to “do the right thing”, compared to 32 per cent in 2019.
Head of broker at Great Southern Bank, Mathew Patterson, said: “This research shows that today’s borrower has more than the interests of themselves and their families in mind when making important life decisions.”
“There is a sizeable market of conscious borrowers who want to know who they will be partnering with and what they stand for.
“Our research found that 73 per cent of Australians flock to brokers for their expert advice, so the industry has a unique opportunity to expand on their expectations of providing sound knowledge by broadening the criteria they use to compare lenders and learning more about lenders’ stance on ethics and sustainability,” Mr Patterson said.
Rising Tide Financial Services senior financial planner Matt Hale said there’s increasing queries for ethical lenders, particularly from Australians under the age of 40, with people “conscious that ethical investing helps them make a difference”.
“Many brokers themselves uphold these same values and we’re now providing more ethical considerations when discussing lenders with clients.
“It’s important brokers continue to have non-financial conversations with clients about their values and what impact their loan can have,” Mr Hale said.
[RELATED: Great Southern Bank champions brokers in 1H23 loan growth]
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