How brokers can harness the value of white-label products
According to the MFAA/ Ernst & Young research paper, ‘Observations on the value of mortgage broking’, brokers are proficient at matching the right product to their customers’ needs. The research shows that nearly half (47%) of customers believe they can get access to a wider range of products through a broker versus any other channel.
Coupled with the fact that around 55% of loans are being generated through the broker channel, it is increasingly evident that Australians are growing more confident in the broker proposition and turning to brokers as trusted, long-term advisers who will help them find the right loan from a diverse lending market.
White-label loans bring these statistics to life. Available exclusively through the broker channel, the broker, rather than the lender, becomes the face of the loan. In a paradoxical way – the lack of brand on the loan helps enhance the broker’s own brand, by providing customers with something they can’t access themselves anywhere else. This strengthens the broker-customer relationship and also builds loyalty.
More and more brokers are tapping into the value of white-label – and it’s come a long way since its beginnings in the industry just a few years ago. From a new concept that brokers were curious about, to a disruptive force that’s become one of the top product searches on many lending panels. In 2014, only 35% of brokers in the market had access to Advantedge white-label products, but by the end of 2015 this figure had grown to around 85%.
So, what are the main benefits of white-label for brokers?
You will receive tailored support to help you and your customer
- White-label loans generally come fully supported with a range of marketing collateral, including brochures and websites to help clients better understand what white-label is and why it may work for them. These features can help with the sale process and build customer confidence.
- In workshopping white-label loan application enquiries with Australia’s leading white-label provider Advantedge, brokers also have access to a dedicated Scenarios Team. Unlike some other scenario lines in the market, Advantedge’s team members enjoy a delegated credit authority, so a scenario ‘yes’ will be a ‘yes’ when the application is submitted, provided that the scenario details remain the same.
- In addition, Credit Managers are available via direct phone or email to help with queries – they even provide brokers with their direct phone number, so there’s no need to battle through a call centre. Advantedge manually underwrites every application, so you have the confidence of knowing that a real person will be making the decision. Advantedge also encourages its Credit Managers to call the broker on each and every deal, because we understand that broker access to credit is critical.
You can deliver a flexible product that suits your client’s needs
White-label customers are provided with the essential loan features they are likely to actually use. They have access to redraw facilities and can choose to have debit cards and internet access. With competitive interest rate, these fit-for-purpose products can save customers considerable money over the life of their loan.
Interestingly, as the white-label industry matures, we are seeing a shift in how these loans are used. Traditionally the white-label target market has been the ‘big core’ of lending within Australia, the mum and dad borrowers. But now brokers who are more familiar with white-label are securing more complex transactions, involving multiple trusts and companies, with white label too.
For more information about how to harness white-label to grow your business, speak to your BDM.
Advantedge Financial Services Pty Ltd (Advantedge) ACN 130 012 930 Australian Credit Licence 391202 is a major participant in the mortgage market and has been delivering competitive and innovative home loan products to Australians for over 20 years. Advantedge is part of the National Australia Bank Group (NAB) and is Australia’s leading wholesale funder and distributor of white-label home loans.