ANZ falls from grace in broker space

Performance

A considerable decline in the major bank’s favourability among brokers has coincided with a continued blowout in the lender’s turnaround times, new data has revealed.

Over the past several months, ANZ has experienced a sharp uptick in home lending volumes, particularly from refinances looking to secure a lower rate amid the COVID-19 crisis.

Such borrowers have been lured by ANZ’s lucrative cashback offers and low fixed-rate offerings (relative to its major competitors).

The latest monthly authorised deposit-taking institutions statistics from the Australian Prudential Regulation Authority revealed that ANZ’s mortgage portfolio grew by approximately $1.8 billion in May, doubling growth reported by its nearest competitor (CBA).

However, according to Momentum Intelligence’s latest Broker Pulse research, the share of brokers sending mortgage applications to ANZ (broker usage) slipped by 11 percentage points in June, from a peak of 66 per cent in May to 55 per cent.

The drop-off in ANZ’s home lending performance is also reflected in the Australian Finance Group’s latest mortgage and competition index, which reported that the bank’s share of broker lodgements slipped to 10 per cent in June after peaking at 38.6 per cent in May.  

This has coincided with a continued blowout in ANZ’s turnaround times, which, based off Broker Pulse figures, increased from an average of 22 business days in May to an average of 26 business days in June.

ANZ has publicly acknowledged its shortcomings and recently introduced changes to its assessment process to address ongoing lags, which have included the onboarding and relocation of staff.  

As a result of the blowout in ANZ’s turnaround times, the bank’s net promoter score (NPS) has slipped deeper into negative territory, from -37.6 to -55.5.

NAB, Westpac recover, while CBA slips

Meanwhile, NAB and Westpac have recovered ground in the third-party space after losing favour with brokers in May.

Approximately 29 per cent of brokers sent mortgage applications to NAB in June, up from 26 per cent, while Westpac’s share increased from 16 per cent to 17 per cent.

The banks’ turnaround times also improved, with NAB’s turnaround times falling from an average of 14 business days to an average of nine business days and Westpac’s, from over 16 business days in May to 11 business days in June.

Accordingly, NAB’s NPS improved from -48 to -25, while Westpac’s NPS increased from -35.2 to -19.4.

Despite continuing to record the lowest turnaround times among the big four banks, broker usage of the CBA fell in June, down from 50 per cent to 48 per cent.

CBA’s NPS also took a hit, down from 27.7 to 10.8.

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