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Great Southern Bank took the lead in two broker-favourite metrics in FY24, according to the bank’s financial results.
No. 1 for brokers
While well-known for its lending support for home buyers, the bank is becoming equally popular among brokers for the strength of its broker service. In particular, the bank took a leading industry position on two key metrics – Broker Net Promoter Score and on-day settlement of loans – during FY24.
The bank’s Broker Net Promoter Score* – a measure of how likely brokers are to recommend the bank to their customers – was extremely strong, with Great Southern Bank ranked third nationally out of 37 lenders and first out of non-major banks.
At the same time, the bank ranked first in the industry for the on-day settlement of home loans during every month of the financial year, as measured by online settlements provider PEXA.
Leading the charge for first home buyers and investors
According to the bank’s results, its market share among first homebuyers remained particularly strong, with Great Southern Bank supporting around 2.1% of those Australians who became first home buyers during the year. This is close to three times its overall market share, demonstrating the bank’s commitment to its purpose of helping all Australians own their own home.
Lending remained strong across all segments, with its home loan book growing at 1.2 times system to more than $16.2 billion.
Today, around three quarters of all the bank’s home lending comes via brokers, up from 56% three years ago.
Big increases to investor lending
While brokers know the bank for its owner-occupier home lending, many would be surprised by the increases to its investor home lending.
A stronger focus on investor lending drove a significant uplift, with investors now representing around 25% of the flow of new home lending – a big increase in just six months.
To facilitate the increase, the bank took positive steps to improve its investor lending, including:
• Accepting negative gearing on applications
• Positive changes to credit policy for self-employed applicants
• Increased rental income recognition to 90%, and
• Building a dedicated team of credit assessors for complex applications.
Investing to support brokers
Paul Lewis, Managing Director and Chief Executive Officer of Great Southern Bank, said: “Since rebranding as Great Southern Bank three years ago, we’ve comprehensively transformed our operations, become more efficient and more competitive.
“Our home lending decisions are being made faster than ever before.”
The improvements to the bank’s products, services and broker support are a direct result of broker feedback. Previously, the bank solicited brokers’ opinions in a series of roundtables on where they most needed support. This feedback became part of the bank’s multi-year investment in its technology and service, which has resulted in faster loan decisions, improved customer service, and industry-leading products.
Expanding and supporting its home buyers
Bolstering its strong results, Great Southern Bank continues to expand its home lending product range.
While it’s already in the green personal loan market, it will shortly be launching a green home offer with a small discount that can be applied to all its variable rate home loan products.
The bank also offers strong savings products, including some designed purely to help customers save for their home deposit. This includes its Home Saver Account, which has grown to include over $250 million in savings since it was launched three years ago.
Great Southern Bank was recognised for the tenth year in a row as the Canstar Customer-Owned Bank of the Year - Savings.
Strong results
The bank posted strong overall results, with its success in attracting and retaining customers, steady home loan growth and effective cost management helping the bank to achieve a solid Group NPAT of $37.3 million. The bank’s retail deposits grew by 4.7% to $13.6 billion.
- Broker Pulse Third Party Lending Report, August 2024.
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