Turnaround times expand in November, net promoter scores dip

The majority of ADI lenders took more days to arrive at initial credit decisions in November, the latest Broker Pulse Survey suggests.

This year’s final Broker Pulse survey received responses from a total of 245 brokers between December 1-10, 2021. According to the results, average turnarounds for large and small ADIs increased to 9 and 10 business days, respectively, while non-banks continue to speed up since September.

The increase in turnarounds also merited a decrease in net promoter scores (NPS) for many lenders, although the majority maintains a positive NPS.

Major banks

While CBA consistently received at least 38% of broker flows, the major started the year with an average turnaround time of 17 business days and a net promoter score of -29.

Fast forward to year-end, CBA is now keeping its time to initial credit decision under control at 6 business days. Net promoter scores are also up for the lender, which is currently marked at 33 points - its highest since the first-ever Broker Pulse Survey in September 2019.

NAB tied with CBA’s NPS of 33 points, also closing the year with its own record-high. They also managed to steadily improve their NPS from 0 at the start of the year to the current standing. Additionally, NAB’s time to initial credit decision never went beyond 6 business days since August.

For the other two majors, however, the case is somehow different.

After a generally steady improvement in processing speeds, Westpac’s average time to initial credit decision is back to double digits at 11 business days, longer by 3 days than the previous month. Its NPS also slid further down to -23, its lowest since September 2021.

ANZ also stands on the other side of the spectrum as it consistently showed above-average processing times, blowing out to a peak of 23 business days in April and closing the year with a processing speed of 18 business days. Net promoter score is also back the way it was in January at -51.

Annie Kane, Editor of the Adviser, cites ANZ’s high volume of broker applications as a testament that ANZ remains a preferred bank, just “not for those in a hurry”.

Non-majors

After an entire year of strong performance, Macquarie closes 2021 as the most used lender with a broker usage rate of 41%.

Nevertheless, the non-major maintains a fast turnaround of 4 business days, a speed at least twice faster than industry-average.

Macquarie’s NPS also leapt to 79 points, its highest since April and up by 9 points from the previous month.

Following Macquarie from some distance was ING, whose net promoter score of 50 points remains unchanged at year-end. Turnaround times have also remained steady for the large lender at 5 business days on average.

As for Suncorp, this month’s 3-per cent increase in broker flows came with a steep jump in NPS. Previously at -21 in October, the non-major almost clinched a positive NPS as it closed with a score of -4. Turnaround time, however, also rose by 1 day, now sitting at 12 business days.

On the other hand, after receiving high broker flows and jumping to 3rd place, St. George Banking Group’s (STG) time to initial credit decision went up by 2 days since October, and brokers are now lamenting the bank’s extended processing time.

All year round, STG’s processing speed has been double-digits, except for in October, when it marked its year-long best of 9 business days. The slow processing speed also reflected on the bank’s net promoter score, which remained on the negative end the entire year.

While still on the positive end, Bankwest’s NPS also slid 10 points from 36 in October to 26 in November, its lowest since April 2021. Turnaround time for the non-major has also been expanding since July from 4 business days to the current 10 business days.

Non-banks

With a broker usage rating of 15%, Advantedge secured the 10th spot in the monthly survey and was the only non-bank to be included in the top 10 list.

The non-bank maintains its 5-day average turnaround time, now at its 6th consecutive month.

With an NPS of 53, however, Advantedge slid by 6 points since the previous month. Still, this score remains better than most and is only bested by 3 other lenders, namely, New Castle Permanent, Connective Home Loans, and Macquarie.

Meanwhile, Pepper Money is consistently improving its NPS from a year-long low of 21 in August to the current 52.

The non-bank also managed to get 12% of broker flows in November as it continues to improve its turnaround from a 1-year high of 7 business days in August to the current 5 business days.

Finally, Bluestone Mortgages’ recorded the fastest average turnaround among all lenders, banks and non-banks combined. Its time to initial credit decision is currently at par with Macquarie, which sits at 4 business days, despite a 2% bump in broker usage (5% in October to 7% in November).

Overall, most lenders have shown steady recoveries throughout the year ever since turnarounds blew out at the beginning of the pandemic. The improved speeds are also showing in their improved NPS scores relative to January.