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A majority of mortgage brokers are crying out for greater product innovation.
According to a recent straw poll conducted by The Adviser, 76 per cent of brokers said they would like to see “more product innovation” from lenders, while the rest said it wasn’t an important issue.
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Of course while the third party distribution channel would like to see greater product innovation amongst Australia’s leading lenders, this is easier said than done.
ING DIRECT’s head of broker distribution Mark Woolnough said it was difficult for lenders to be innovative in the product space as any niches are generally copied very quickly.
“Products are generally the same and any innovation in this space is generally copied very quickly – when one lender moves on product or price, the rest follow. Product and price are never where a lender or a broker will set themselves apart. Innovative service, however, can help brokers and lenders differentiate themselves from the competition,” Mr Woolnough said.
“I think innovation will be in the service delivery – the interaction between the bank, the broker and the customer. I think this is where there will be some really exciting developments. Moreover, I think this is where ING DIRECT, or any lender, can really make their mark on the market.”
Bankwest’s head of broker sales Ian Rakhit agreed and admitted the lender has plans to continue to innovate around its back-end processes and broker/client/lender interaction.
“We will continue to invest in our broker channel and we are committed to listening to and acting upon our brokers’ feedback,” he said.
“It is an exciting time for Bankwest as we embark on several initiatives that will focus on quality improvement and subsequently larger rewards, growth of market share and back-end processing enhancements to deliver fast timeframes to approval.”
