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The major bank and its subsidiaries have outpaced competitors in the broker channel despite higher than average turnaround times, new Momentum Intelligence data has revealed.
Momentum Intelligence, the research arm of the Momentum Group, has released the latest series of its Broker Pulse data, which aggregates the experiences of Australian mortgage and finance brokers each month to assess the performance of lenders in the third-party channel.
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The data has revealed that ANZ and Westpac recorded the sharpest increases in broker usage over the three months to 31 March.
The percentage of brokers sending business to ANZ rose from 31.1 per cent to 47.3 per cent over the period, while Westpac’s share increased from 16.3 per cent to 28.5 per cent.
Westpac’s subsidiaries – Bank of Melbourne, BankSA and St.George Bank – also recorded increases in broker usage over the period, rising to 11.6 per cent, 2.6 per cent and 24.4 per cent, respectively.
This is in line with the Australian Finance Group’s latest mortgage and competition index, which reported improvements in both ANZ and Westpac’s broker market share from AFG brokers over the March quarter, rising to 9.9 per cent and 20.2 per cent, respectively.
ANZ’s rally in the third-party channel coincided with an improvement in the bank’s turnaround times, from an average of approximately nine days to just over six days.
But according to brokers surveyed by Momentum Intelligence, Westpac’s turnaround times increased by an average of approximately 11 days, from just over seven days as at 31 December 2019 to over 18 days as at 31 March 2020.
BankSA was the only Westpac subsidiary to record a reduction in turnaround times, which halved from an average of eight days to four days, while Bank of Melbourne and St.George both recorded increases, rising to 12 days and 18 days, respectively.
This contributed to a deterioration in the bank’s net promoter score, from -10 as at 31 December 2019 to -35.7.
However, lenders with the fastest turnaround times continued to consolidate their positions in the broker channel, with Commonwealth Bank subsidiary Bankwest (three days) and Macquarie Bank (just over three days), each recording improvements in broker usage, rising to 18.7 per cent and 33 per cent, respectively.
Brokers interested in joining Momentum Intelligence’s Broker Pulse panel can apply to Momentum Intelligence here. Participants of the survey will receive full across to the report and exclusive insights into the research.
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