MPA catches up with AMP Bank's head of sales and marketing for his thoughts on the issues affecting brokers.
This year is set to be a busy one for the mortgage industry, with the non-majors pushing for increased market share, and opportunities cropping up for brokers. MPA catches up with AMP Bank head of sales and marketing Glenn Gibson for his thoughts on what 2014 has in store.
MPA: What do you think the main challenges are that brokers will face this year?
GG: I think the challenges for brokers in 2014 will have more to do with the opportunities. This may be the year for expansion for a lot of broker businesses, and that can bring its own set of issues.
For the smaller operators it will be about how you handle a growing business (putting on staff; dealing with increased applications and the phone calls that go with that; referral sources suddenly presenting themselves). As with any lender, how a broker handles a large spike in volumes can have a positive or negative impact on the business for up to six months.
MPA: What opportunities do you think brokers will be presented with this year?
GG: As mentioned, I believe 2014 is all about the opportunities for brokers. A stronger property market combined with low interest rates is a great environment to operate in; 2014 should bring a wider client base to brokers and it will be a good time to review the suite of products they have used to make sure they are capturing all opportunities.
Whether it’s SMSF, investors or even first home buyers, having the knowledge coupled with a wider range of products will ensure brokers make the most of this year’s opportunities.
MPA: How are you expecting the mortgage market to perform in 2014?
GG: If the last quarter of 2013 is anything to go by, it’s going to be a very busy 2014. While net mortgage borrowing across the industry up to October 2013 was running at about 5%, there was certainly a jump in the final quarter. Very early indications show that the market remains buoyant after the Christmas break, with property auctions in a number of states starting sooner than in previous years.
MPA: Do you see the non-major banks challenging the big four for market share this year?
GG: I think the non-majors are making solid inroads in winning a greater market share of the mortgage market. It’s a competitive market as a lender, and continual enhancements to products, policies and service is a must.
All the brokers I speak to want to diversify their lending panel, but it’s up to the non-majors to earn the business with compelling offers and consistent service. I believe we will see a further increase in the non-major market share in 2014.
MPA: AMP identified BDM support as an area of focus last year. How have brokers responded to improvements in the AMP BDM team?
GG: In 2013 we increased the broker sales team by over 25%, and in the last quarter we added an additional four contracted BDMs to support the increase in volumes and broker activity. The response from brokers was excellent, and while AMP Bank has always rated well in surveys for our BDM team, I’m very happy with the added focus.
MPA: Product diversification has been another area of focus, especially SMSFs. Have brokers been keen to go down the SMSF route?
GG: Brokers have taken to SMSF lending strongly,and the number AMP Bank receive each month continues to increase. To highlight the uptake, brokers currently submit more SMSF loans to us than our planner network. While we do receive a higher percentage of SMSF loans due to our experience in this space and the products and services we offer that support it, it still only represents a small portion of the total broker lending market.
Brokers continue to want to enter the SMSF lending space but are not sure of just how to do it. Our BDM team work closely with brokers on education around SMSFs and not simply our products. We’re always willing to have a chat to any broker who would like to know more about how SMSFs work, the size of the market and the opportunities.
MPA: AMP is well known for its wealth management. Aside from SMSFs, what are your thoughts on how brokers can tap into this space?
GG: Brokers need to firstly identify if wealth management is something that will enhance their business. With the right research and focus it can be very beneficial, but it could also take a broker’s focus off their own successful business.
There are a number of ways brokers can tap into the wealth management space, from setting up a referral partnership with a wealth management specialist to setting up their own separate business department. It’s important for brokers to first understand what they want to get out of diversifying, and the benefits to both their clients and their business.
MPA: More consistency in service, especially in high-volume periods, has been another focus for AMP. Are brokers noticing improvements there?
GG: The challenge with all lenders, and particularly the non-majors, is how to handle the spikes when you have the best offer in the market. Our approach over the past year has been from an end-to-end perspective. In 2013 AMP Bank made nine product/ price enhancements, and each time we assessed how our servicing was handling the increase.
We finished the year with three of the highest application months in the history of the bank, and while we were certainly stretched, we controlled the volumes better than we ever have.
MPA: What are your plans for this year? Where will brokers notice improvements when dealing with AMP?
GG: AMP Bank has had four record years in a row for mortgage applications, and we are planning to move that up again in 2014. As they say, “you are only as good as your last game”, so we will be making sure we continue with the product development, pricing initiatives and service enhancements this year.
MPA: What would you say to brokers who haven’t used AMP recently to persuade them to give your organisation a fair go?
GG: I believe our product suite is very competitive across the entire range, and in particular in the SMSF and investor markets. We have a few credit niches when it comes to investor clients, which can make a big difference to borrowing capacity, so please speak to one of our BDMs if you are unsure what these are.
In a recent survey of 10,000 consumers, AMP Bank was selected as having the best fixed rate home loans and best bank loan features, so please have a look at what we have to offer your clients.
MPA: Are there any other key messages that you’d like to pass on about AMP’s approach to servicing the broker channel?
GG: The broker channel is AMP Bank’s largest channel for mortgages, and as such we appreciate the support we have received from brokers over the past few years. We will continue to develop our product and service proposition with the view of working closer with both the brokers that have supported us and with the brokers that are yet to use us.
MPA: What do you think the main challenges are that brokers will face this year?
GG: I think the challenges for brokers in 2014 will have more to do with the opportunities. This may be the year for expansion for a lot of broker businesses, and that can bring its own set of issues.
For the smaller operators it will be about how you handle a growing business (putting on staff; dealing with increased applications and the phone calls that go with that; referral sources suddenly presenting themselves). As with any lender, how a broker handles a large spike in volumes can have a positive or negative impact on the business for up to six months.
MPA: What opportunities do you think brokers will be presented with this year?
GG: As mentioned, I believe 2014 is all about the opportunities for brokers. A stronger property market combined with low interest rates is a great environment to operate in; 2014 should bring a wider client base to brokers and it will be a good time to review the suite of products they have used to make sure they are capturing all opportunities.
Whether it’s SMSF, investors or even first home buyers, having the knowledge coupled with a wider range of products will ensure brokers make the most of this year’s opportunities.
MPA: How are you expecting the mortgage market to perform in 2014?
GG: If the last quarter of 2013 is anything to go by, it’s going to be a very busy 2014. While net mortgage borrowing across the industry up to October 2013 was running at about 5%, there was certainly a jump in the final quarter. Very early indications show that the market remains buoyant after the Christmas break, with property auctions in a number of states starting sooner than in previous years.
MPA: Do you see the non-major banks challenging the big four for market share this year?
GG: I think the non-majors are making solid inroads in winning a greater market share of the mortgage market. It’s a competitive market as a lender, and continual enhancements to products, policies and service is a must.
All the brokers I speak to want to diversify their lending panel, but it’s up to the non-majors to earn the business with compelling offers and consistent service. I believe we will see a further increase in the non-major market share in 2014.
MPA: AMP identified BDM support as an area of focus last year. How have brokers responded to improvements in the AMP BDM team?
GG: In 2013 we increased the broker sales team by over 25%, and in the last quarter we added an additional four contracted BDMs to support the increase in volumes and broker activity. The response from brokers was excellent, and while AMP Bank has always rated well in surveys for our BDM team, I’m very happy with the added focus.
MPA: Product diversification has been another area of focus, especially SMSFs. Have brokers been keen to go down the SMSF route?
GG: Brokers have taken to SMSF lending strongly,and the number AMP Bank receive each month continues to increase. To highlight the uptake, brokers currently submit more SMSF loans to us than our planner network. While we do receive a higher percentage of SMSF loans due to our experience in this space and the products and services we offer that support it, it still only represents a small portion of the total broker lending market.
Brokers continue to want to enter the SMSF lending space but are not sure of just how to do it. Our BDM team work closely with brokers on education around SMSFs and not simply our products. We’re always willing to have a chat to any broker who would like to know more about how SMSFs work, the size of the market and the opportunities.
MPA: AMP is well known for its wealth management. Aside from SMSFs, what are your thoughts on how brokers can tap into this space?
GG: Brokers need to firstly identify if wealth management is something that will enhance their business. With the right research and focus it can be very beneficial, but it could also take a broker’s focus off their own successful business.
There are a number of ways brokers can tap into the wealth management space, from setting up a referral partnership with a wealth management specialist to setting up their own separate business department. It’s important for brokers to first understand what they want to get out of diversifying, and the benefits to both their clients and their business.
MPA: More consistency in service, especially in high-volume periods, has been another focus for AMP. Are brokers noticing improvements there?
GG: The challenge with all lenders, and particularly the non-majors, is how to handle the spikes when you have the best offer in the market. Our approach over the past year has been from an end-to-end perspective. In 2013 AMP Bank made nine product/ price enhancements, and each time we assessed how our servicing was handling the increase.
We finished the year with three of the highest application months in the history of the bank, and while we were certainly stretched, we controlled the volumes better than we ever have.
MPA: What are your plans for this year? Where will brokers notice improvements when dealing with AMP?
GG: AMP Bank has had four record years in a row for mortgage applications, and we are planning to move that up again in 2014. As they say, “you are only as good as your last game”, so we will be making sure we continue with the product development, pricing initiatives and service enhancements this year.
MPA: What would you say to brokers who haven’t used AMP recently to persuade them to give your organisation a fair go?
GG: I believe our product suite is very competitive across the entire range, and in particular in the SMSF and investor markets. We have a few credit niches when it comes to investor clients, which can make a big difference to borrowing capacity, so please speak to one of our BDMs if you are unsure what these are.
In a recent survey of 10,000 consumers, AMP Bank was selected as having the best fixed rate home loans and best bank loan features, so please have a look at what we have to offer your clients.
MPA: Are there any other key messages that you’d like to pass on about AMP’s approach to servicing the broker channel?
GG: The broker channel is AMP Bank’s largest channel for mortgages, and as such we appreciate the support we have received from brokers over the past few years. We will continue to develop our product and service proposition with the view of working closer with both the brokers that have supported us and with the brokers that are yet to use us.
