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The aggregator has launched a new online community that will allow lenders to communicate with brokers.
Connective has announced the launch of its digital Connective Community, which is an online community that it said would allow dialogue between brokers and lenders.
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The online community aims to provide a digital forum for lenders to converse with brokers in real time, where brokers can present real scenarios of the clients that they are servicing, and for lenders to provide guidance and options.
According to the aggregator, this could mean brokers can provide a more efficient service to their clients.
Connective executive director Mark Haron said the community has grown to over 4,000 members, with 2,400 active every month.
He said the community includes several scenarios that have revealed key issues and trends faced by the industry as it navigates the economic consequences of the COVID-19 crisis.
There are over 60 lender business development managers (BDM) in the group, who assist with answering questions and providing a lender perspective on brokers’ client scenarios, Mr Haron added.
Mr Haron said the aggregator has launched the digital forum at a time when the lending environment has become increasingly complex amid the COVID-19 crisis, and the federal government’s proposal to scrap responsible lending obligations, along with a complex home loan approval process, where the application process from pre-approval to conditional approval has increasingly varied across the major lenders, has made for an unpredictable lending environment.
“The need to improve the flow of information between brokers and lenders has been compounded by the multitude of economic challenges that COVID-19 has thrown at us all,” Mr Haron said.
“At the same time, we know that processing times for queries with lenders have increased, making it hard for brokers to get certainty and stability for their clients.
“The industry is confronted with one of the most complex lending environments we have seen this generation. Brokers and lenders need more direct lines of communication for everyone’s sake. We’ve found that creating these online communities is the perfect solution to connecting more people, more efficiently.”
Brokers want clarity
Mr Haron has observed through the online forum that many brokers are seeking more clarity from lenders on how JobKeeper would be considered when applying for loans, along with scenarios exploring refinancing options.
“Both of these trends point to increased financial pressure on Australians and potentially more complex lending scenarios, which was confirmed in some of our seminars in our popular Digital Lender Splendour program in October this year,” he said.
“Some lenders, especially many of the major banks, won’t accept loan applications relying on JobKeeper payments, with some major banks encouraging brokers to ask prescribed questions about the impact of the pandemic on their finances. Layers of complexity like this deserve timely interaction and guidance between brokers and lenders – and we can provide it with our online communities.”
Mr Haron predicts that any new government initiatives would see increased demand from brokers for more timely and easier access to information from lenders.
“Digital solutions that bring together lenders and brokers to openly discuss how the current landscape is changing is essential to facilitating the flow of credit safely,” Mr Haron said.
“Brokers need to know how lenders are responding to rapidly changing policies and new information, in near real time, to support their customers, many of which are in very vulnerable financial positions.
“We will continue to explore ways that Connective can increase the flow of information from the lenders through the broker channel to the end consumers.”
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