Lender innovation set to improve

Lender innovation set to improve

by 0 comments

Staff Reporter

Australia’s lenders are expected to become increasingly innovative heading into 2013, a new report by a lenders' mortgage insurance company has revealed.

According to Genworth’s Home Grown: Mortgage Industry Perspectives report, launched yesterday, sluggish credit growth will force lenders to think outside the box when it comes to lending practices.

“While a majority of lenders are experiencing sluggish growth, this is likely to lead to innovations of lending techniques, from implementing new online and offline channels to cost strategies to reduce the impact of decreased credit demand,” Genworth’s chief executive, Ellie Comerford, said. “If lender expectations that consumers will continue deleveraging in 2013 prove accurate, then the urgency of implementing new lending techniques and channels cannot be underestimated.”

But while Australia’s lenders expect consumers to continue to deleverage in 2013 on the back of employment insecurity, mortgage brokers are much more optimistic about credit growth.

More than two thirds of those surveyed believe credit growth will pick up in the year ahead, compared to the 12 out of 14 lenders that believe it will continue to contract.

Mortgage brokers were also quick to point out, however, that they need competition between lenders to increase in order to grow their businesses in a low credit growth environment.

Mortgage brokers also emphasise the need for lenders to focus on the loan approval process to improve loan volumes.

“The survey highlighted the need for lenders and brokers to use more similar criteria and methods during the credit sign-off process and to work more collaboratively to improve efficiencies, especially around the credit scoring policies. Doing so could result in quicker and more efficient borrowing processes, ultimately driving credit demand,” Ms Comerford said.

Staff Reporter

Australia’s lenders are expected to become increasingly innovative heading into 2013, a new report by a lenders' mortgage insurance company has revealed.

According to Genworth’s Home Grown: Mortgage Industry Perspectives report, launched yesterday, sluggish credit growth will force lenders to think outside the box when it comes to lending practices.

“While a majority of lenders are experiencing sluggish growth, this is likely to lead to innovations of lending techniques, from implementing new online and offline channels to cost strategies to reduce the impact of decreased credit demand,” Genworth’s chief executive, Ellie Comerford, said. “If lender expectations that consumers will continue deleveraging in 2013 prove accurate, then the urgency of implementing new lending techniques and channels cannot be underestimated.”

But while Australia’s lenders expect consumers to continue to deleverage in 2013 on the back of employment insecurity, mortgage brokers are much more optimistic about credit growth.

More than two thirds of those surveyed believe credit growth will pick up in the year ahead, compared to the 12 out of 14 lenders that believe it will continue to contract.

Mortgage brokers were also quick to point out, however, that they need competition between lenders to increase in order to grow their businesses in a low credit growth environment.

Mortgage brokers also emphasise the need for lenders to focus on the loan approval process to improve loan volumes.

“The survey highlighted the need for lenders and brokers to use more similar criteria and methods during the credit sign-off process and to work more collaboratively to improve efficiencies, especially around the credit scoring policies. Doing so could result in quicker and more efficient borrowing processes, ultimately driving credit demand,” Ms Comerford said.

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
How this agent's commitment to clientele built him a 25k-strong client base

In this episode of Secrets of the Top 100 Agents, host Tim Nearly talks to RT Edgar’s Glen Coutinho who ranked number six in this year’...

View all podcasts

How difficult is it to maintain a good work/ life balance?

Very – if I’m having balance my competitors are working
Not – I schedule the time into my calendar in advance
A little – It’s scheduled, but something always crops up
Work/ life balance – what’s that?
Do you have an industry update?