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The time it took for larger banks to reach an initial credit decision on broker applications hit a new record in January, according to the Broker Pulse survey.
The amount of time taken for brokers to receive an initial credit decision from larger authorised deposit-taking institutions (ADIs) dropped to a record low in January 2025, the latest Broker Pulse survey showed.
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The data, collated through the Broker Pulse survey by Agile Market Intelligence between 1 and 17 February 2025, revealed that it took the most popular banks an average of 3.3 business days to reach an initial credit decision in January.
This marks the fastest time to initial credit decision for the larger banks since Broker Pulse began tracking this data (in 2019) and beats the previous record of 3.4 days set the month prior.
The drop continues the trend of lenders delivering accelerated turnarounds following years of investment in technology and support staff.
In September 2023, for example, the average time for an initial credit decision was more than two days longer, at 5.7 days.
The trend of accelerated response times was also observed by brokers using smaller banks (defined as ADIs with less than 20 per cent of broker usage).
The average number of business days taken for this cohort to make an initial credit decision came in 5.7 days in January, a slight increase on 4.7 days in December, but continuing the general trend of shortening wait times since August 2023 (when the average turnaround was 8.4 days).
However, non-bank lender turnarounds have been fluctuating over time, with brokers saying they had to wait an average of 4.9 business days for non-banks to reach an initial credit decision in January. This lender segment has had erratic response times since August 2023.
Speaking to The Adviser, Agile Market Intelligence’s commercial director Oliver Stofka said: “The continued improvement in turnaround times highlights the industry’s increasing focus on broker service and operational efficiency.
“Large ADIs, in particular, have made significant strides in speeding up decisioning, reflecting the shift in the industry towards fast servicing.
“While smaller ADIs and non-bank lenders have seen more variability, the broader trend suggests a shift towards faster, more responsive service across the market. This focus on efficiency ultimately benefits brokers and their clients, making the lending process more seamless.”
What is driving broker recommendations?
While speed to credit decision is a consideration for brokers when recommending lenders to their clients, turnaround times are now only the third most popular factor driving broker recommendations.
According to the Broker Pulse survey, client circumstances are now the primary reason a broker would recommend a major bank or non-bank to their clients.
Almost three-quarters (73 per cent) of brokers named client circumstances as the most important factor for using a major bank in January, followed by product pricing (48 per cent) and turnaround times (24 per cent) in third place.
Meanwhile, non-major banks are mostly attractive due to their product pricing, according to the survey (73 per cent), followed by client circumstances next (60 per cent) and then turnaround times (43 per cent).
The trend for non-bank recommendations was slightly different, with 87 per cent of brokers saying client circumstances were the primary reason for choosing a lender, while just 16 per cent said it was mainly due to turnaround times.
To participate in next month’s Broker Pulse survey or for more information, click here.
[Related: Satisfaction with credit assessors at record high: Broker Pulse]
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