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Isma Ahmed sends between 17 and 20 per cent of her business to non-banks, and says people are becoming less ‘brand sensitive’ when it comes to their lender
What are the advantages of using the non-bank lenders?
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They cater to a lot of market niches and in a lot of cases they do better in this area than the big banks would. They also have a few policies that the big banks don’t look at. This makes my job a lot easier because, in many instances, they’re more likely to approve the loan than some other lenders.
What types of clients do you put with non-bank lenders?
A lot of the time it’s people who need loans that the major banks won’t approve at the time. That’s probably one of the main things. Sometimes their products are better. Also, if a non-bank offers a product which has the features that the customer is looking for, then we’ll look at placing the borrower with them.
Non-bank lenders aren't as well known in the consumer marketplace as the big banks. Do you ever have any trouble explaining to borrowers who the non-bank lenders are?
We find a lot of the younger customers are more interested in getting their loan approved. You will still have customers who are ‘brand sensitive’. The way we sell it if we have to is, ‘this lender is going to approve your application’. We also sell it based on the features.
What do you enjoy about working with non-bank lenders?
The process is sometimes a lot easier and faster. If you need to push something through, the relationship that your BDM has with internal staff is often a lot more effective as well. They’ve got a lot more control, so you can get things done a lot quicker and easier. When it comes to things that are outside the box, the non-banks are often easier to deal with as well. You get more of a personal touch.
What advice would you give to brokers who are hesitant to write non-bank loans?
I think the main thing is to just look at what the non-banks are offering. In a lot of instances, they fit the customer’s needs a lot better than the major banks. That’s the most important thing – fitting the customer with a product and lender that meets their needs.
