Tech, turnaround times still critical broker concerns

In a broker’s relationship with a bank, technology, turnaround times and service are critical components. And they’re areas in which the banks seem to have shown some improvement in 2022.

As part of the annual Brokers on Banks report, MPA surveyed brokers on banks’ performance across 10 criteria, including turn times, tech and service.

The most frustrating issue for brokers in 2022, like the first year of the pandemic, was slow turnaround times, but concerted efforts by banks have led to a marked improvement.

Brokers have been in a tough spot when it comes to turnaround times. They have seen exponential loan growth over the last couple of years, with clients demanding fast loan decisions to take advantage of the COVID property boom.

At the same time, some of the larger banks have struggled to keep pace with skyrocketing loan volumes. However, concerted efforts on the banks’ part, including hiring more credit staff and implementing digital tools, led to improved turnaround times starting at the end of 2021.

In MPA’s 2021 survey, 70.83% of respondents said banks’ turnaround times had worsened significantly. This year, however, that figure dropped to just 14.52%. Nearly 39% of brokers said turnaround times had improved in 2022.

Read next: Brokers on Banks 2022 – all the winners revealed

For the third straight year, brokers ranked Macquarie first for turnaround times. Commonwealth Bank placed second in the 2022 survey, while 86 400 placed third.

Brokers also liked the fact that a number of banks had made significant investments in technology, upgrading lending platforms and making greater use of electronic documents and digital identity verification. They also approved of banks using comprehensive credit reporting to speed up the loan process.

BDM support was also a priority for brokers. Macquarie took first in that category this year, followed by Bankwest in second and Adelaide Bank in third.

To read the full Brokers on Banks report, click here.