​​​​Major banks continue to receive largest share of broker applications

A total of 232 brokers participated in the Broker Pulse Survey conducted between 1-10 October 2021. According to the results, majors continued to dominate broker flows in September, with ANZ and CBA merely switching places in the top 2, and NAB ranking 5th.

Overall Performance

Suncorp made its way to the leaderboard in September, overtaking AMP Bank and pushing Advantedge off of the top 10. Except for Suncorp and Westpac, the rest of the top 10 lenders also saw a decrease in broker flows this month.

For the large lenders (receiving greater than 20% of broker applications), turnaround time was up by 1 business day, now sitting at an average of 9 days. 

Additionally, loans lodged by brokers serving self-employed clients took the longest to process among all loan types. 

All top lenders received an improved BDM helpfulness rating, and overall, BDM scores were also remarkably higher than in all the previous months since the beginning of Broker Pulse.

CBA

CBA is back to receiving the most number of broker applications in September. The feat is matched by a steep jump in its BDM rating, from 42 points in August to 51 points in September.

While its credit assessors were rated 4 points lower this month, the lender ranks the highest among majors and 4th among the most commonly used ADIs in terms of transparency in processing applications.

Its 3-month performance also shows a stable turnaround time that’s consistently shorter than the average for all large lenders. 

Despite receiving the highest number of applications, however, CBA is still seeing thinning broker flows. After peaking in July at 47%, their fraction of applications declined to 44% in August and dipped further to 39% in September.

ANZ

ANZ is only behind CBA by 1 percentage point in terms of broker flows. The dip from the previous month, however, is quite steep, as it went from 46% to 38%.

In the past 3 months, the major has been struggling to trim its turnarounds, consistently faring below the average processing speed for large ADIs. This year, ANZ closes the third quarter with an expanding turnaround of 15.6 business days, up by 3 days since August.

Nevertheless, brokers are finding it easier to submit applications to ANZ in September. 

The major is also gaining momentum in personnel performance as its BDMs and credit evaluators recently received their highest ratings since May 2020.

Macquarie Bank

Macquarie’s strong personnel performance and easy application process are reflecting strongly on its broker flows. The non-major is once again climbing its way to the top after receiving 37% of broker-lodged applications and scoring only 2 percentage points behind CBA in September.

It is also keeping its reputation intact as the ADI with top-rated BDMs, shortest loan turnarounds, and is among the best in terms of transparency in processing applications. 

After a sharp drop in its net promoter score (no. of promoters minus no. of detractors) from 75 in July to 58 in August, Macquarie is also rapidly recovering, with an NPS of 76 in September.

Bankwest

At 28%, Bankwest was the 4th most used lender in September. The non-major closes the quarter with a strong personnel performance, ranking 2nd in BDM helpfulness ratings and 3rd in credit assessment transparency.

It also ranked 3rd in customer effort scores, or the ease in lodging loan applications as reported by brokers, scoring their best thus far since August of last year. 

The past 3 months have seen a gradual increase in Bankwest’s processing time. However, at 6.9 business days in September, the lender’s turnarounds were still shorter than average across all loan types. 

NAB

NAB closely trails behind Bankwest and ties with ING in terms of broker flows.

The major’s BDM helpfulness scores have been steadily improving in the past 3 months. While credit assessment transparency dipped 7 percentage points since August, it also remains among their highest since September of last year.

Similar to Bankwest, NAB fares strongly in terms of turnarounds, having above-average speeds across all loan types and even twice faster than average when it comes to processing broker-lodged applications from self-employed clients.

ING

Tied at 5th place with NAB, ING maintains its August broker usage ranking. As with most of this month’s top lenders, ING also received a smaller fraction of broker applications in September, down by 5 percentage points from the preceding month.

Overall, the lender has been steadily showing strong performance all year round and is closing the quarter with impressive turnarounds. ING currently registers processing speeds that are at least twice faster than average, even when it comes to complex loan scenarios.

According to brokers, the lender’s loan evaluation process was also deemed the most transparent. Additionally, its BDMs were rated as among the most helpful, and its application process, among the easiest for brokers.

Westpac

Westpac received 27% of broker-lodged applications in September and was one of the only 2 top lenders that showed an increase in usage rating.

The most recent survey results show that the major bank marked its strongest performance during the 3rd quarter, as it sees its turnarounds steadily decline after peaking at the beginning of 2021.

BDM and credit transparency ratings were also highest for Westpac this quarter. These improvements in performance also reflected strongly on their 3-month rolling average net promoter score that is at its highest since May 2020.

St. George Banking Group

St. George Banking Group received 26% of broker flows in September, securing the eighth spot in our monthly broker usage ranking. 

The non-major performed worse in terms of the number of broker-lodged applications compared with the previous month, in congruence with the overall steep decline of broker usage of non-majors. Last September was also their worst month all year round for this metric.

Despite its low broker usage, the non-major performed well in all other metrics. Its turnarounds averaging at 10.3 days in September was its fastest over a one-year period. The non-major’s NPS is also at its best over the same period after a steep jump from -55 in August to -11 last month.

Suncorp

After receiving 17% of broker-lodged applications in September, Suncorp now makes it to the top 10. Like Westpac, Suncorp saw an increase in broker flows in September, despite an overall decline in usage among top lenders. 

It is also keeping its turnarounds shorter in the latter part of the year, currently sitting at 9.6 business days. It also shows an above-average processing speed for loans by self-employed clients.

Brokers also reported that it was much easier to lodge applications to Suncorp in September than in August, giving it a customer effort score that is at a record-high since July 2020. Additionally, the bank's BDMs were rated as significantly more helpful this month than all the previous ones since the beginning of Broker Pulse surveys.

AMP Bank

AMP’s broker usage dropped by 1 percentage point in September.

Currently sitting at 8.3 business days, the non-major is beginning to recover from its extended turnaround time of 9.1 days in August, its worst just yet since April 2020. Despite this progress, AMP is still yet to fully regain its speed in the previous quarters.

Its NPS is currently up by 37 points compared to the previous month as well, which may be, in part, a reflection of its improved BDM rating that is currently at a record-high since the last 6 months. Transparency in credit evaluation is also starting to improve for AMP, after steadily declining since February of this year.