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Jessica Darnbrough
Superior service rather than lower rates than the banks will drive non-bank market share in 2012.
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Speaking to The Adviser at the annual mortgage management conference in Sydney Last week, General Manager Advantedge Services Gary Howard said non-banks consistently out perform other lenders when it comes to thier service proposition.
“Service is the bread and butter of non-banks,” he said.
According to Mr Howard, if non-banks continue to focus on providing quality service, they should see their market share grow back to levels not seen since the GFC.
“Non-banks cannot compete in the technology space and I don’t think it is wise for them to compete on price,” he said.
“The real proof point for non-bank lenders is service. If they can offer service unmatched by any other lender, then they can and will win market share.”
Homeloans general manager retail sales Greg Mitchell agreed with Mr Howard and said the lender has seen its volumes increase as a result of putting an increased focus on service.
“For non-banks, service is our key proposition. It is also our key point of differentiation. Our clients are more than a number. We provide them with advice and help put them in a financial solution that meets all of their goals and needs,” Mr Mitchell told The Adviser.
“We have really stepped up our focus on service. We are committed to providing the best service available, and that has really started to pay dividends for us.
“We have definitely seen our volumes increase. Better yet, for the non-bank sector as a whole, there is a good vibe out there at the moment. The push we saw towards the majors is starting to move back in the opposite direction, which is another reason why we are seeing an increase in volumes.”
This push back to non-majors can be largely attributed to the fact that discounting between Australia's major lenders has tapered off over the last few months.
