Mystery shop shows brokers better than banks.
Results from the latest Core Data ACQUIRE Index show brokers continue to score ahead of banks and credit unions over a range of seven criteria, in results that show brokers were more engaged with consumers in regard to their home loans than their institutional competitors.
"This year's research reveals that mortgage brokers are, at least in the eyes of the consumer – the most efficient and effective mortgage sales engines currently operating and that credit unions and building societies are the least effective," the Core Data research findings state.
When measured by 'understanding' - or the ability to understand customer needs - brokers trumped their banking and credit union competition, scoring an 87.5% approval rating from consumers who have taken out a home loan, compared with 78.5% for banks and 78.1% for credit unions.
In terms of 'assurance' - or the measure of 'comprehensive knowledge of loan products' - mortgage brokers also came out on top, at 87.6%, ahead of the banks on 85.3% and credit unions on 84%.
Following the introduction of the National Consumer Credit Protection Act, the latest Core Data Index also found that brokers outranked lending institutions in terms of compliance. Brokers garnered a 61.4% score from consumers, ahead of banks (57.4%) and credit unions (50.3%).
Core Data head of mortgage research Andrew Inwood said brokers had been "a consistent favourite of consumers".
“Brokers put extra effort into knowing their customers and performing for them,” Inwood said. “Brokers’ income is linked to completing the loan, so they have the fastest speed-to-market for borrowers while also being the most efficient sales channel for many banks,” he said.
“We are not surprised by the service-related scores from brokers, because 41 per cent of all Australian mortgages are written by brokers and well in excess of half all new loans are broker-written," he said.
Read the full article at http://www.brokernews.com.au/news/breaking-news/mystery-shop-a-victory-for-brokers/117790