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Jessica Darnbrough
Second tier lenders are outpacing the majors in a number of key business areas, a new report has found.
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According to The Adviser's Third Party Banking Report - Second Tier Lenders, conducted this month, second tier lenders are beating the majors when it comes to broker interaction and training and education.
The non-majors also have the edge when it comes to commissions.
The results of this report found that all but one of the smaller banks scored in excess of 3.00 out of a possible 5 in terms of commission structure while only one of the majors surpassed that level.
Broker Elle McKenzie told The Adviser that while the second tier lenders offered better remuneration than the majors, they still weren’t good enough.
“They are good, but still nowhere near sufficient to support the long term growth and viability of the broking industry,” Ms McKenzie said.
But while the second tier managed to outperform the majors in some categories, they still have ground to make up in other key areas, most notably in technology.
According to the report just two of the second tier lenders provide what can be described as ‘good’ online lodgements. The rest were deemed to have ‘average’ facilities in terms of efficiencies, usability and functionality.
The results were significantly lower than the majors, who earlier this year scored “good” or “very good” with brokers in The Adviser's Third Party Banking Report - Major Lenders.
For the full report don’t miss issue 4.10 of The Adviser hitting desks next month.
