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Online SME lender OnDeck has seen a 70 per cent increase in broker-originated loans in the last year, following an expansion of its channel presence.
According to the fintech lender, broker-originated loans increased by 70 per cent in the past year.
While the exact figures have not been disclosed, the lender noted that the growth comes following a business restructure that saw its broker business development (BD) team triple in size, its expansion into new forms of commercial offering and increased aggregator partnerships.
The SME lender first entered the Australian SME finance market in April 2015 and has been building its presence in the broker channel since 2017.
At the beginning of the year, the lender increased the size of its business development team three-fold, in an attempt to facilitate growth in broker-generated loans.
In light of the expansion of the BD team, Joshua Edmondston, OnDeck business development associate for NSW and ACT, said that the BD team was aiming to help brokers expand into commercial lending, adding: “We might be an online lender, but for us that’s never at the expense of customer service or broker contact…
“OnDeck is about long-term relationships with our broker partners,” he said.
“We really act as an extension to the broker’s team. Reflecting this, we always triage broker enquiries upfront so that their customer won’t have an unnecessary credit enquiry recorded on their credit file, and to save the broker valuable time.”
Mr Edmondston added that the growth of its broker-originated loans and its repeat business was “testimony” to the lender’s support.
Michael Burke, head of sales at OnDeck, noted that the banking royal commission has been a key driver for brokers to explore commercial lending.
“Brokers are now more prepared to look beyond the traditional home loan market,” Mr Burke said.
“Commercial loans don’t just add a revenue stream, however, they also allow brokers to deepen the client relationship and act as broader provider to their customer base.”
Mr Burke concluded: “The broker market is a significant pillar of support for Australian SMEs, and we expect our broker-generated lending to continue to outpace our other channels well into the future.”
[Related: SME lender officially launches equipment finance loan]
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