SPECIAL REPORT
BROKERS ON BANKS
BROKERS ON BANKS 2023 As interest rates rise for the first time in over a decade and inflation precipitates a cost of living crisis, the broker–bank nexus has rarely been more vital MORTGAGE BROKER opinion matters more than ever to banks as the third party originates an increasing share of the loan market. The latest MFAA data shows: • the broker share of home loans is at 69.3% of the market, the highest share on record for a December quarter • the value of commercial lending settled by brokers for the six months to March 2022 showed a 55.7% year-on-year increase Banks have invested heavily in trying to improve products, systems, services and support to keep in favour with brokers. The MPA Brokers on Banks 2023 survey reveals
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which lenders have succeeded in brokers’ eyes. MPA asked hundreds of brokers across Australia to name their preferred lenders and their wish lists concerning banks in an anonymous survey. Brokers were asked to score banks’ performances in the last 12 months across 10 criteria [see What do brokers want from banks? boxout on opposite page]. The results illustrate a highly competitive industry, with banks jostling with each other to provide the best loan products to brokers and their customers. Themes explored include incumbents versus challengers, the importance of technology, and a growing and changing broker demographic.