ANZ, CBA dominate broker flows

According to the results of the latest Broker Pulse survey conducted last 1-10 September 2021, which was participated by 234 brokers across Australia, major banks ANZ and CBA received the most number of broker applications in August, marked at 46 per cent and 44 per cent, respectively. Additionally, 9 out of 10 most commonly used lenders were ADIs.

Overall turnarounds

Overall average turnaround time across all lenders was 8 business days in August, continuing the improving speeds observed in the last few months.

However, processing broker-lodged applications with complex scenarios and those from self-employed borrowers took a few days longer, at 10 days each on average. Meanwhile, loans with above 90% loan-to-value ratios (LVR) took an average of 9 business days to process.

ANZ

Despite ANZ’s extended processing lags, it was the most used by brokers in August. The major also sees an increasing trend in broker applications since June 2021 along with narrowing turnarounds.

Currently, ANZ has the second-longest turnaround among the top lenders, which sits at 12 business days on average, and even stretches a bit wider when dealing with complex scenarios, refinances, and loans with > 90 per cent LVR. Nevertheless, the major’s processing speed is showing a strong recovery since April 2020.

At an ESG briefing that took place two weeks ago, ANZ Chief Executive Shayne Elliot previously told investors that the decreasing affordability of house prices is all the more reason to tighten lenders’ risk standards.

“That may take a bit more time to do and may make the banks a bit uncompetitive in terms of things like turnaround times”, says Shayne, “but it’s still the right thing to do and I think in the long term, it’s actually in the shareholders’ interests to do so.”

When it comes to personnel performance, brokers are reporting improving BDM helpfulness as well as consistency in ANZ’s credit evaluators.

CBA

Brokers lodging applications to CBA are seeing sustained improvements in credit assessment transparency and BDM helpfulness over the last 3 months. According to the most recent survey results, these performance ratings are at its highest since June 2020.

The major’s turnarounds are also showing substantial recovery, as it displays decreasing and single-digit durations since June 2021.

CBA general manager Adam Croucher attributes these results to the strides CBA made in the last 12 months, including expanding its workforce capacity in the broker channel and loosening accreditation requirements for new brokers.

Macquarie

Macquarie is August’s third most-used lender after receiving 39 per cent of broker flows. The non-major has been receiving substantial fractions of broker flows in the last 3 months, playing between second and third-place within the said survey durations.

While brokers lodging applications to Macquarie have been reporting slightly expanding turnarounds since June 2021, the non-major’s average of 5 business days to initial credit decision in August still makes it the fastest among all large ADIs.

Macquarie also consistently shows above-average performance in other service metrics, even outperforming large lenders in terms of credit assessment transparency, BDM helpfulness, and customer effort scores in the latest survey.

Bankwest

The non-major previously saw a drop in the fraction of broker-lodged applications from 31 per cent in June down to 25 per cent in July. In August, however, Bankwest saw its steepest increase in its share of broker flows, which is now at 33 per cent.

The last 3 months also showed stable improvements in turnarounds for the bank, as it trimmed its processing time to less than 7 business days for the first time since September 2020.

Brokers catering to first-home buyers additionally reported that Bankwest exhibited the shortest turnarounds for such loan types. Arriving at an initial credit decision after only 4 business days, the bank only takes half the average processing speed of all lenders.

ING

After brokers reported decreasing turnarounds for ING in the previous months, the bank’s turnaround in the latest survey results is the longest it has been since April 2020.

Nevertheless, its time to initial credit decision remains above-average, and ING still closely trails behind Macquarie’s speed and overall ease in lodging applications for brokers. It is also consistently one of the most used lenders by brokers.

The bank’s excellent performance in processing loans is most pronounced for loan types with > 90 per cent LVR, with its processing speed currently more than twice faster than average, sitting at 4 business days.

NAB

NAB now ranks third among all large lenders in terms of processing speed, and is currently the quickest to process refinances and loans from self-employed borrowers.

Similar to CBA, the major’s turnarounds remained at competent levels for all loan scenarios included in the survey. Its time to initial credit decision over the last 3 months also displays a decreasing trend, and at 6.0 business days, is currently at the shortest it has been in 12 months.

Brokers are also reporting that NAB’s application process is becoming easier each month, and both their BDM helpfulness and credit assessment transparency scores are showing similar improvements in the recent months’ survey results.

St. George Banking Group

Despite tanking scores in multiple aspects of loan processing in the third-party channel, St. George Banking Group maintains its relatively large fraction of broker-lodged applications.

Most recent 3-month data show that brokers who submitted to St. George Banking Group went through expanded turnarounds, as the non-major processed loans at durations roughly twice longer than average.

On a lighter note, brokers are giving St. George Banking Group’s BDMs steadily increasing ratings in the past months, and consistency in credit evaluations are also improving relative to scores at the beginning of 2021.

These improvements, however, are yet to take more significant strides to make them as competitive as the other large lenders’ overall service quality and performance.

Westpac

Westpac’s month-on-month turnarounds have been improving, although the major is still yet to recover from a continuously decreasing broker usage since April 2021.

BDM helpfulness, credit assessment transparency, and customer effort ratings were tanking for Westpac in the recent months’ survey findings, which may partly explain the thinning broker flow.

Advantedge

At 9th place in terms of broker usage, Advantedge is the only non-ADI lender to land a spot in the top 10 lenders in August, receiving 17 per cent of broker applications as it did in July.

Brokers are also giving Advantedge’s BDMs improving month-on-month ratings, and results show that they were scored the most helpful among all large non-ADIs in the recent survey results.

Additionally, the last 3 months show that its credit assessors are now recovering from a dip in scores at the beginning of the first quarter.

AMP Bank

AMP Bank ranks as the 10 most commonly used lender in August. As compared to the 1st quarter of 2021, AMP is now receiving applications from a greater fraction of brokers.

According to survey results from the most recent 3 months, however, brokers are giving AMP decreasing BDM helpfulness scores, and its credit assessor ratings are dipping at an even steeper slope.

Turnarounds are also expanding for AMP, although processing speeds still remain at competitive levels for large lenders.

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