FBAA boss Peter White gives his verdict
Peter White (pictured), managing director of the Finance Brokers Association of Australia (FBAA), has a few choice words to say following publication of ANZ’s bold new mortgage plans.
Under the ‘ANZ 2030’ master plan published this week, ANZ said it is sharpening its focus on direct mortgage lending, with plans to significantly expand its mortgage banker network and fast-track the rollout of its ANZ Plus digital front-end.
Of particular interest to brokers were ANZ chief executive Nuno Matos’ comments regarding “avoiding disintermediation”, suggesting the bank could be preparing to challenge the dominance of the third-party broker channel.
In a competitive banking environment, ANZ must focus on “delivering differentiated and superior propositions, raising the standard of every digital and human interaction in our channels, and avoiding disintermediation, while materially improving productivity levels”, said Matos.
For White, such rhetoric is all part of the big bank playbook.
“I’m not referring specifically to ANZ, but let’s just say a few of the majors have been obsessed for a while about increasing their direct business and in some cases reducing support for the broker channel, but they are missing the point,” said White. “It’s not about brokers and it’s not about the banks. It’s about the customers and they are overwhelmingly putting their trust in mortgage brokers.”
The data certainly agrees, with brokers claiming a record 77.6% share of the home lending market in the June quarter, per the latest data supplied by the Mortgage and Finance Association of Australia (MFAA).
While White said he understands that banks are focused on profits for their shareholders, he said they “often can’t see the forest for the trees".
“While technology is rapidly advancing, the attitudes of some of the larger banks remain stuck in the past, and they can’t seem to embrace today’s competitive and customer-driven environment," he said.
“Let’s make it real – the big banks hate competition and if they had their way they’d go back to the old days when a few of them controlled the market.
“But the losers back then were consumers, and this was highlighted not so long ago at the royal commission, which we must remember was set up to investigate misconduct of the banks.”
White said he finds it “somewhat humorous” that some banks still see brokers as competition. “Borrowers are still customers of the lenders, so this is all just silliness to me.”
“Koep doing what you are doing and providing excellent customer service,” added White. “Hopefully soon the big banks will get it, as other lenders already do, and focus their energy on working with the broking channel in the best interests of our mutual customers.”
