05:50, Dec 24 2021
6 minute read
The driving force behind MyState Bank “extraordinary growth” is customer satisfaction and trust in brokers.
Tasmania-based lender MyState Bank has revealed that its home loan applications have increased by 137% in the four months to October 31, 2021 (compared to the previous corresponding period for 2020), while loan settlements real estate had increased by almost 100%.
MyState’s chief banking officer, Huw Bough, said recent growth in the bank’s mortgage portfolio demonstrates the value of a more human approach to banking, both for its customers and brokerage partners.
He said brokers were a key part of that.
“I think the key is trust,” Mr. Bough said.
“Clients trust brokers who provide the right advice, and brokers trust lenders who provide the right products, with the right features and the right technology platform, that meet their service commitments.”
Mr Bough said more and more mortgage brokers are choosing to partner with smaller ‘challengers’ like MyState Bank because they offer better service and features to brokers and customers than the big banks. .
“A lot of times the challengers have better technology, more consistent service, a more human touch, and they do what they say they will do.”
The increasingly popular brokers
The non-major lender recently released consumer research, which surveyed more than 500 Australians who had used a mortgage broker in the past three years.
The investigation revealed that Australians are increasingly looking to mortgage brokers as their preferred partners in securing financing for their homes.
Of those who responded, 86% said they were very satisfied or satisfied with the experience and 91% said they would recommend the broker’s services to family and friends.
He also noted how the recent COVID-19 pandemic has changed consumer behaviors, with more people now comfortable with a “virtual loan” process than before the pandemic, as in addition to being more open to other sources of competitive real estate finance beyond the “big four” banks.
Mr Bough said the greater reliance of smaller banks such as MyState on brokerage channels to distribute mortgages has changed the competitive balance in this fast-growing market segment.
“We’ve been able to invest in the brokerage channel because we depend on it for distribution,” he said.
“We can tell brokers, we support you because our interests are aligned with yours.”
The Hobart-based bank is now forging ahead on the continent, partnering with mortgage brokers to bring its innovative online lending products to a national clientele.
While its initial focus for continental expansion is in Victoria, NSW and Queensland, more relationship managers will be recruited along the east coast as the business growth continues.
[Related: New leaders to guide MyState into battle]