Major bank's head of broker discusses key themes for 2024
The head of broker at NAB is encouraging mortgage brokers to remain vigilant when it comes to the threats posed by cybercriminals.
Adam Brown (pictured above), NAB executive broker distribution, who was providing the bank’s views about the main trends likely to affect brokers and customers in 2024, said brokers should be alert for cyber threats and have the ability to “identify the red flags”.
“A sense of urgency is a common theme among cyber threats, so always take time to verify a call or email is legitimate,” Brown said.
“Everyone has a role to play in preventing cybercrime. Brokers can take actions like keeping antivirus and operating systems up to date, and turning on multi-factor authentication for anything that contains important information, like email, social media and accounting software.”
Brown said NAB offered a cybersecurity hub for businesses. He said all Australians need to be alert to the constant challenge of scams in 2024.
NAB customers reported an average of 1,500 scams cases every month in 2023.
“Criminals are using sophisticated technology to manipulate victims and we’re seeing new scams emerge in 2024, such as AI voice impersonation, remote access scams using chat and QR code phishing,” said Brown.
“If brokers or their customers believe they have been the victim of a scam, they should contact their bank and report it to Scam Watch.”
Brown discussed a number of key themes expected to affect brokers and customers in 2024, including interest rates, a buoyant housing market, consumers cutting back on discretionary spending, artificial intelligence (AI) and technology.
He said Australia’s economy was in good shape and while conditions were forecast to slow, consumers and businesses remained resilient.
“Inflation levelled out towards the end of 2023 and while the cost of living is still putting pressure on Australians, people are adapting, engaging in their finances and looking for opportunities to get ahead,” said Brown.
“The residential property market has maintained its upward momentum and NAB Group Economics is forecasting interest rates – now at 4.35% – may have peaked for this cycle and remain on hold until November.”
Asked about the lending market for 2024, Brown said NAB supported brokers across multiple asset classes in residential, commercial, small business and equipment finance. Brokers wanting to find out more could chat to their BDM or relationship manager.
Strong housing markets - NAB
Australian home prices increased by 8.1% over 2023 and the pace of growth remained steady into 2024, according to CoreLogic.
While housing markets are active, rising home prices and an undersupply of new homes is making it difficult for many new buyers to enter the market.
“Buyers need support to realise their homeownership dreams and brokers are well equipped to help them navigate the process and access initiatives like the extended Home Guarantee Scheme for first home buyers,” Brown said.
NAB is a participating lender in the Home Guarantee Scheme, which aims to help eligible customers to buy their first home sooner. The bank is also working with government and industry participants to address the broader challenge of housing affordability – particularly in affordable, specialist and disability housing sectors.
Consumers cut back on spending - NAB
NAB’s Consumer Sentiment Survey for the December quarter showed consumers are changing their behaviours to address rising living costs and improve their financial positions.
The survey found one in two consumers cut back in areas such as eating out, buying coffee, entertainment, and car travel, while four in 10 saved on holidays, food delivery and charitable giving. An additional one in three cut spending on streaming services and major household appliances.
The report also showed that six in 10 redirected this spending towards daily living expenses, while just over four in 10 boosted their savings or offset accounts; and one in five paid down their mortgage or other debt.
Brown said most customers were actively taking control of their finances but NAB was aware that some people were more concerned about their circumstances – whether due to cost-of-living pressures or natural disasters such as the recent floods and storms in Victoria and Queensland.
“We see that in 2024, many of our broker introduced customers will need extra help – which is why we continue to invest in providing support and disaster relief to eligible customers,” he said.
“Our message to brokers and their customers is: reach out early. We can help and there are even more support options that might be available if people ask for help earlier.”
AI and technology
Brown said technology was emerging as a powerful tool in the fight against cybercrime – NAB used AI tools in areas such as cybersecurity and prevention of fraud and financial crime.
He said in the year ahead, improvements in technology and AI would continue to enhance business security and ensure brokers and their support teams spent more time building stronger relationships with customers and partners.
“At NAB, around 25% of broker home loans now come through Simple Home Loans, delivering faster turnaround times using technologies like AI and automation.
“NAB wants to be at the leading edge of AI, but we know it’s critical to do that in a way that meets customer expectations, regulatory obligations, and own data ethics standards.”
Brown said NAB used chatbot capabilities extensively with colleagues and to help serve customers better. It recently created an internal framework for exploring AI in a safe and structured way.
“We’re also supporting brokers and aggregators on their tech investments to help the whole industry to become more effective and efficient.
“It’s an inherently complex task and to be successful we need to work in collaboration with the industry and our partners across all brands and channels – including residential, commercial, and white label businesses.
“Overall, we’re optimistic about the outlook for 2024 and while there will be some bumps in the road, we believe there are significant opportunities for brokers to grow their businesses and help customers to achieve their goals in the year ahead.”
