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The driving force behind MyState Bank’s “extraordinary growth” is customer satisfaction and trust with brokers.
Tasmania-based lender MyState Bank has revealed that its home-loan applications were up 137 per cent in the four months to 31 October 2021 (compared with the previous corresponding period for 2020), while home loan settlements were up nearly 100 per cent.
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MyState’s general manager of banking, Huw Bough, said the recent growth in the bank’s mortgage portfolio demonstrated the value of a more human approach to banking, both for its customers and broking partners.
He said brokers were a key part of this.
“I think the key is trust,” Mr Bough said.
“Customers trust brokers that provide the right advice, and brokers trust lenders that deliver the right products, with the right features and technology platform, which meets their service commitments.”
Mr Bough said more mortgage brokers were choosing to partner with smaller ‘challengers’ like MyState Bank because they offer better service and features to brokers and customers than the major banks.
“Quite often, challengers have got better technology, more consistent service, a more human touch, and they do what they say they will.”
Brokers increasingly valued
The non-major lender recently released consumer research, which surveyed more than 500 Australians who had used a mortgage broker in the past three years.
The survey found that Australians increasingly view mortgage brokers as primary valued partners in securing finance for their homes.
Of those who responded, 86 per cent said they were either very satisfied or satisfied with the experience and 91 per cent said they would recommend the services of the broker to their family and friends.
It also noted how the recent COVID-19 pandemic had changed consumer behaviours, with more people now comfortable using a ‘virtual loan’ process than before the pandemic, as well as being more open to alternative sources of competitive home financing beyond the ‘big four’ banks.
Mr Bough said the greater reliance of smaller banks such as MyState on broking channels for mortgage distribution had shifted the competitive balance in this fast-growing segment of the market.
“We’ve been in a position to invest in the broking channel because we rely on it for distribution,” he said.
“We can say to brokers, we’re supporting you because our interests are aligned with yours.”
The Hobart-based bank is now making advances on the mainland, partnering with mortgage brokers to deliver its innovative online lending products to a national customer base.
While its initial focus for mainland expansion is in Victoria, NSW and Queensland, more relationship managers will be recruited along the eastern seaboard as the business growth continues.
[Related: New leaders to guide MyState into battle]
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