MyState and Auswide set to launch broker pilot

The newly appointed general managers of the two banks, Tim Newman (general manager, MyState Bank) and Damian Hearne (general manager, Auswide Bank), have now confirmed that one of the first projects to roll out from the merged entity aims to expand support for the broker channel.

Speaking to The Adviser, the two GMs said that the pilot will enable business development managers (BDMs) to represent all products and services across both banks, as well as Selfco (asset finance) and TPT (commercial lending).

Newman described the broker pilot as a foundational step: “The merger enables us to invest in what our proposition is over time. But, eight weeks in, we’re starting with the broker pilot. The support that we offer will enable them to have a business development manager who can offer multiple solutions … I think it broadens our proposition.”

The pilot program will be rolled out first in Victoria and Tasmania within the next month before expanding out to NSW and Queensland and then going national.

Newman, GM of MyState Bank said: “We’re getting set up for our trial in Victoria and Tasmania – we expect that to be out there within the next month or so. We’ll have those teams being able to represent both of the Auswide and the MyState brands, as well as SelfCo … that training is in process, and we’re just getting that all happening at the moment.”

Hearne, GM for Auswide Bank, said: “We chose to start in Vic/Tas for a couple of key reasons. Auswide does not have representation in Tasmania. While the team down there and the brokers are already well known to MyState – it is easy for them to have discussions about us.

“As MyState probably has a greater brand presence down in the southern parts of Australia than us; we thought we’d start it there.”

The pilot is the first major initiative where teams from both banks will collaborate. “We know we’ve got sales teams out there, sort of operating in the same territories, talking to the same brokers … that’s why it makes sense for us to work together so we can support the channel in the most effective way,” Newman said.

Newman said that while product structures and policies between Auswide and MyState are complementary, there are differences in niches and lending approaches:

“There are certainly scenarios today that MyState has said no to that Auswide can support brokers with … and vice versa. That’s what our team is making sure is really clear and transparent; so that we can offer a more comprehensive proposition,” Newman said.

Hearne said: “There are going to be opportunities that suit both brands and those that suit one or the other … it might be that Auswide does some construction better … it might be that MyState looks at an investment loan completely differently.”

BDMs will be trained to identify which products and policies best fit different broker scenarios, while brokers will continue to require separate accreditations for each brand. Hearne said that the group is reviewing accreditation requirements as it considers future expansion.

From a broker perspective, the benefit would be having a unified contact, the duo said. Newman said: “They’ll have one contact who can represent both of our brands, both of our sets of products and services … but it’s actually more than that, because within our group, there’s the four businesses – SelfCo … and also our TPT business, which offers some commercial lending as well.”

New lending platform on the horizon

While the banks will remain operationally separate in the near term, integration work is underway.

The group is forging ahead with a multibrand strategy for the foreseeable future but could look at work to bring the banks together onto a single core banking platform in the future and, potentially, review the brand strategy.

“We definitely see more and more of the bank coming together over time,” Newman told The Adviser.

“At the moment, we’re running two different operations teams but as we rebuild our lending platform (and this will be a massive investment as it’s a 10-year opportunity that we want to get right), we’ll do that with a view to bring together one combined operations team to support both businesses.

“I think brand is also something we’ll consider but that will require a bit more analysis and research before we come to a conclusion on it.”

Hearne said: “We’re not set on a particular way yet. We’ll work out what best suits us, but right here, right now, we want to make the business as efficient as possible. And that starts with group and operating functions.”

Newman said his current focus is on maintaining and building growth: “For me, it’s making sure we’ve got really good momentum in the business. From a MyState perspective, we were a little bit flatter than we wanted to be coming into the merger … we’ve got some good momentum in the business now, and we really want to continue that.”

Hearne said that in his new role as GM of Auswide Bank, he has three core priorities: “Continue to serve our customers brilliantly, that can’t change; keep rolling momentum and growing; and making sure that our people, as we go through this change, feel that they’re supported as we provide clarity and direction.

“But in terms of that experience, when a broker submits a deal, for now there isn’t much difference. But it’s about what we’re building for the future.

“What this merger does do is bring more brands – and certainly in regards to MyState and Auswide – two really customer-centric businesses together, and allows us to invest more into the way we support our brokers and our customers as we build an efficient but also a better experience for them.”

[Related: Newly merged banking group announces new leaders]