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The NAB-owned aggregator has said that it captured around 35 per cent of total third-party commercial flows in the 2017 financial year.
At a professional development day in Sydney this week, the aggregator revealed that its trail book has grown by 9 per cent to $67 billion. Commercial deals currently account for around 30 per cent of total settlements while residential makes up the bulk.
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FAST brokers settled $5.53 billion worth of commercial deals over FY17, and the group’s NSW head, Rob Ryan, expects commercial volumes to increase this year.
“We are still by far the leading commercial and asset finance aggregator in the market,” Mr Ryan said.
The Northern Region head pointed to a recent MFAA report revealing an 11.5 per cent increase in the number of mortgage brokers writing commercial deals.
“As residential lending has plateaued, we are seeing more brokers diversifying into commercial and asset finance,” Mr Ryan said.
FAST’s parent company, National Australia Bank (NAB), has also been the beneficiary of more commercial business being written through the third-party channel.
FAST became NAB Commercial Broker’s first aggregation partner in 2012. Over the last five years, the major bank has expanded its distribution network and now has agreements with 20 aggregators.
Close to 1,300 brokers have written loans via NAB Commercial Broker since its inception in 2012.
NAB Commercial Broker general manager Chris Thomas said that this figure continues to grow by 27 per cent year-on-year. The group has also grown its support team to 60 employees, servicing NAB Business Bank and NAB Asset Finance, as well as Small Business, Franchise, Agribusiness, Health, Private and Corporate.
“As Australia’s biggest business bank, our goal is to lead the charge in innovation for small business and commercial lending in the broker channel,” Mr Thomas said.
The NAB general manager said that diversifying into commercial lending offered brokers the opportunity to access more revenue streams and expand their value proposition beyond just residential loans.
“In recent years, the expansion of the small business sector has been a key trend Australia-wide, with growth across all states and territories,” the GM said. “What is clear is that small business is an industry on the move, presenting a range of opportunities for brokers to reach out, help them grow and be successful.”
[Related: NAB Commercial Broker settlements up 40%]
