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ISCOVER
Australians are currently living – and struggling – with the most volatile lending environment in a decade.
Skyrocketing interest rates are being paired with a growing cost-of-living crisis that is seeing Australian household budgets put to their test, and in-turn, driving them to actively seek value and savings wherever they can.
It’s no surprise then that one of the first places they look to secure greater value is their mortgages, which has broad implications for all of us.
Recent data from the Australian Banking Association (ABA) found that from September 2022 to March 2023, 70 per cent of Australians who sought to refinance a fixed or variable-rate mortgage switched lenders.
In speaking to our broker network, it’s clear that unless you are partnering with the right types of lenders, client churn is currently a huge risk. Australians are seeking brokers and lenders who take the time to understand their financial situation and are able to seek the best possible rates, all whilst providing the quality service that they expect.
At MyState, we’ve been working with our broker network to ensure we’re understanding the challenges being faced by the end-customer, to help our network maintain its customer base.
On the lending side, it’s imperative that we are properly and adequately assessing Australians’ financial situations to get them the best rates available to them.
In fact, a recent RBA bulletin showed some 30 per cent of variable-rate mortgage holders since May 2022 had negotiated a better deal with their current lender. It’s abundantly clear that lenders need to create more incentives to drive long term satisfaction for brokers and their clients.
In challenging economic environments, we all need to take a moment to review and refine our product offerings and just as importantly, our levels of service.
What’s increasingly evident is that the brokers and lenders that will win in this environment are those that act to better serve their customers.
We can all do that by putting systems in place that help more people when they look at refinancing when their fixed rates expire.
At MyState, we’ve found providing service with a human touch that considers people’s financial lifestyles and delivers fast turnaround times is driving improved client retention and stronger relationships with our broker network.
And no service is stronger than a personalised one. One example of that approach is our proactivity in contacting brokers to alert them that their customers loan is due to expire, and working with them to develop a plan that works for their customers’ financial situation.
Better service provided by lenders ultimately means you develop better relationships with your customers for the long-term, because as we all know, Australians want to work with brokers and banks they can trust.
Ultimately, for brokers to continue to thrive in this environment, they need to align with lenders that have theirs, and their customers, best interests at heart.
So, if you want to maintain your customer base, keep them engaged and find the best possible solutions for them, make sure you’re partnering with the right lenders to help you achieve those goals.
It’s a win-win for everyone.
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