Major bank shows sign of growing broker applications

Close to 1 in 2 brokers lodged applications to the Commonwealth Bank of Australia (47 per cent) in July 2021, up 7 per cent from June 2021, making it the most used lender in the last month according to the Broker Pulse survey.

The latest Broker Pulse survey results, collected between 1 and 10 August 2021 and including responses from 243 residential mortgage brokers across Australia, revealed that Macquarie now trails behind CBA in broker usage despite Macquarie’s fast turnaround times and positive broker experiences.

Brokers who submitted applications with the major bank reported average turnaround times of 7.8 business days, its lowest recorded point in 12 months. A positive change from its peak of 17.2 days in January earlier this year.

Broker Pulse’s head of broker success, Michael Johnson, commented, “CBA’s track record on turnaround times and experiences for brokers has been variable over the 12 months and increases in turnaround times have subsequently resulted in slower turnaround times in the following periods. We will be watching this closely to see how this affects their performance.”

In a bid to shrink loan turnarounds and counter sliding broker usage, CBA expanded its workforce capacity in managing third-party applications by 25 per cent. Since 5 July 2021, the major bank also loosened accreditation requirements for new brokers, now requiring only a year of experience to lodge their applications.

“I think the investment that we’ve made over the last 12 months is really coming to fruition,” CBA’s general manager for third-party banking, Adam Croucher, told The Adviser.

Brokers additionally reported that the three remaining major banks, on the other hand, marked substantial and sustained recoveries in customer experience during loan applications, alongside improving BDM helpfulness and turnarounds.

According to brokers surveyed, ANZ’s turnaround times have dropped to 14 days, considerably down from their peak of 19 days in April 2021. Westpac also trimmed its decision time down to 13 days, and NAB, to 10. 

The Broker Pulse survey also noted an upswing in broker usage rates for ANZ and NAB, as both majors displaced St. George Bank and ING from the top five most used lenders in July 2021. ANZ climbs to third place at 37 per cent usage rating, followed by NAB at 35 per cent.

Although the survey findings suggest that a lower percentage of brokers used Westpac in July, the big four bank visibly improved customer experience, month-on-month, indicating a recovery to a more positive position for brokers and their clients.