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Brokers, lenders and other industry professionals have reacted with disdain over CHOICE’s Big Bank Switch, but why? Chris Wisbey asks for answers
THE CHOICE Big Bank Switch certainly has received a fair amount of media coverage in the past month.
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Some of the material has been factual while other commentary has been nothing short of pure speculation and misinformation.
For those who missed the original point of the exercise, all they need do is look at what the program was actually marketed as, the “Big Bank Switch”.
Funny thing, as it turns out the lenders who were ultimately selected to participate in the campaign were not big banks or derivatives of the majors.
They are non-banks or mortgage managers and, by extension, brokers.
Mortgage EZY made a decision that our participation in the One Big Switch consumer campaign would be completely contingent upon the active involvement of our experienced and professional mortgage broker partners.
Why? Because there is no better consumer resource available in the industry than an accredited, fully licensed and impartial broker to support and assist a consumer to determine whether an offer is suitable for their situation.
This is what professional brokers do day in, day out, and they are pretty bloody good at it.
As to the campaign itself, there is little doubt that a percentage of the members who signed up will take advantage of the offers and negotiate a better deal through their existing funder.
Alternatively there will also be a percentage that no matter what the retention offer will choose to move on and utilise the solution they have elected for.
Whatever the case may be individually the reality is that the One Big Switch campaign is doing what it set out to do; create awareness for consumers to demand and receive a better deal if they wanted it.
If in the process that One Big Switch member, who is exercising their inherent right to choose, winds up getting a rate cut from their incumbent lender, then so be it.
That occurrence was brought about by One Big Switch creating a competitive environment.
Members hold the power in their hands to do something or nothing but at least they have the opportunity to do something proactively.
During the campaign to date, at least from a Mortgage EZY perspective, it has been very evident that major lenders ‘honoured the threat’ that borrowers may look to make a move.
Automatic rate discounting would appear to have been prepositioned in advance to appease disaffected borrowers who opted to become One Big Switch members.
The establishment of a competitive block strategy is evidence that some lenders considered that the One Big Switch campaign could have a significant impact upon their businesses.
Maybe that’s a ‘captain obvious’ comment but I will say that from my perspective, this is and always should be seen as a proactive and exciting ‘competition enabling’ exercise, and maybe the guys at One Big Switch should perhaps be given some kudos for seeing something that others did not and then acted on it.
By far the easiest option is to be critical of One Big Switch and its public campaign. Or maybe the ‘occupiers from small street’ expressed a sentiment that we can all learn something from into the future.
By Chris Wisbey, Head of Sales & Marketing, Mortgage EZY
