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The banks most commonly used by brokers slashed their turnarounds to five days in July for the first time on record, according to new data.
The latest findings of the monthly Broker Pulse survey from Momentum Intelligence have revealed that in July 2022, “large ADIs” (authorised deposit-taking institutions used by more than 20 per cent of respondents) took the least number of days to reach an initial credit decision on record.
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According to the report – which gathered responses from 249 brokers responding to the July 2022 survey between 1 and 15 August – turnaround times at the large ADIs declined to five business days in July after remaining at six days between March and June 2022.
The data showed that time taken to initial credit decision by large ADIs has been reducing since January 2022 after rising to 11 business days in December 2021 (two weeks) and peaking at 14 days in January and April 2021.
Westpac lags its counterparts
Among the large ADIs, Macquarie Bank maintained its lead as the lender with the fastest turnaround times at two days in July, while the Commonwealth Bank of Australia (CBA) ranked second (its turnaround times dropped from four days in June to three days in July).
Turnaround times at St.George Bank dropped by five days (from 13 days in June to eight days in July), with the Broker Pulse report suggesting that it appears to have corrected the challenges it experienced in June.
However, Westpac posted the slowest turnaround times among the large ADIs, with brokers reporting that the major bank took 12 business days (almost three weeks) to reach an initial credit decision, double the time taken in May (six days) and up from 11 days in June.
Westpac recently announced that it will roll out a digital mortgage process to the broker channel next year after offering it to select direct customers from the “final quarter of the calendar year”, which it said would see some customers secure unconditional approval in 10 minutes.
It would do this by asking customers for digital consent and relying on third-party data sources while using analytics to perform credit checks, along with using customer biometrics to speed up the ID process, verifying financials, and conducting property valuations.
Among the other large ADIs, Suncorp Bank trimmed its turnaround times for the third consecutive month, down from seven days in June to five days in July (after slowing to 12 days in April).
Turnaround times were at four days at Adelaide Bank, National Australia Bank (NAB), ING, Bankwest, and AMP Bank.
Average turnaround times at the small ADIs (those used by less than 20 per cent of broker respondents) remained steady at seven days in July, after remaining at nine days between February and May this year.
Great Southern Bank and MyState provided the fastest turnaround times in this lender segment in July at four days.
On the other hand, turnaround times increased at Beyond Bank (up from nine days in June to 11 days in July), Auswide Bank (up from eight days to 11 days), Newcastle Permanent (up from seven days to 10 days), and UBank (formerly 86 400) (up from four days to six days), according to brokers.
In the non-bank lender segment, turnaround times dropped to five days (from six days in June), with Advantedge recording the fastest turnaround times at three business days.
Brokers reported that seven lenders reduced their turnaround times in July across this lender segment, with La Trobe Financial taking the longest time to reach an initial credit decision (at 10 days, down from 11 days in June).
However, Resimac’s turnaround times increased from five days in June to seven days in July, the survey revealed.
To find out more about the Broker Pulse survey, including how to participate in future surveys, visit the Broker Pulse survey website.
[Related: Bank rates increasingly enticing brokers: Broker Pulse]
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