SPECIAL REPORT FEATURES
BROKERS ON NON-BANKS AGGREGATORS 2021
BROKERS ON NON-BANKS 2021 Priorities have shifted for brokers as they face a second year of lenders’ credit policies and turnaround times being impacted by COVID-19. While still needing to up their game in some areas, non-banks are making inroads with brokers and borrowers looking for alternative solutions
BROKERS’ RESPONSES to this year’s survey on non-banks say it all: the non-banks have stepped in where the banks have let brokers and borrowers down. The banks’ long turnaround times and narrow lending appetites have frustrated brokers for much of the last 18 months. While non-banks have also been affected by the pressure on turnaround times, the majority of broker feedback indicates that their SLAs and procedures have improved. As borrower circumstances have changed, so have broker priorities. While credit policy scored the lowest last year in terms of how important it was to brokers, this year it has
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risen to be the third most important area. Brokers praised the non-banks for not having a ‘tick a box’ approach, and for being flexible with their credit policies to accommodate all types of borrowers. While it is generally accepted that nonbanks have higher interest rates – and this was one factor some brokers said was a barrier to using non-banks – the importance of rates fell this year. Interest rates were top of the list last year, but in 2021 they dropped to eighth place, suggesting that brokers and borrowers are willing to accept the higher interest rates if it means they can get a loan. Some areas remained high on the list
of priorities, like turnaround times and BDM support, but interestingly, commission structure fell to the bottom of the pile, despite usually ranking much higher in all surveys. The brokers who took part in this year’s survey were more likely to have been in the industry for a long time: more than 50% had been in broking for more than 15 years. Only 10% of respondents were aged below 35, with 37% over 55. Thank you to everyone who responded to the survey during such an incredibly busy time. Thanks also to the top non-banks that took the time to answer questions about their service to brokers.
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20/09/2021 10:32:02 am