The broad outlook for Australia’s economy is that it will remain resilient as the new financial year dawns, bringing opportunities for mortgage brokers and their business and home lending customers. NAB’s latest Consumer Sentiment Survey data shows that consumers’ worries eased for the third quarter in a row, despite cost of living concerns remaining elevated. “The broad economic outlook is perhaps better than most people expected, including many within the business community,” says Chris Thomas, executive commercial broker and equipment finance sales at NAB. Growth has occurred in large portions of the economy, such as minerals, agriculture, healthcare, and components of manufacturing being brought back onshore.

Despite signs of positivity in the wider business economy, some headwinds persist – a situation leading businesses and customers to seek guidance from brokers. Slow spending growth remains a challenge for SMEs hoping to drive profitability and growth. Australian Bureau of Statistics figures released in May showed retail turnover grew 1.3% year-on-year. NAB research has found that over one in three Australians intend to save their Stage 3 tax cut as households continue to keep a close eye on their spending.

Role of brokers more important than ever

Recent MFAA data shows that brokers wrote 74.1% of new loans between January and March 2024, an increase of 4.5% from the previous record. Adam Brown, executive, broker distribution at NAB, says it’s evident that brokers continue to play a critical role in helping customers through a higher interest rate environment and managing their cost of living pressures. “As the bank behind the broker, NAB has a long-standing commitment to the broking channel covering both residential and commercial lending,” Brown says.

“Our heritage as Australia’s largest business bank and the strength of our relationships gives us the ability to support a wide range of customers, from homeowners to investors and business owners. We have great capabilities to support these segments, including those buying and owning their own homes.” Nearly two thirds (64.9%) of NAB’s residential lending comes through brokers, up from 61.3% in the previous year. “Our national team of dedicated BDMs, RMs and bankers are in constant contact and are available to support our residential and commercial broker partners and their customers at every step,” Brown adds.

Brokers seeking to diversify

According to figures from the MFAA’s latest Industry Intelligence Service report, the number of mortgage brokers writing commercial loans increased by 8.7% in 2023. For Chris Thomas, the phenomenal rise in commercial broking has reinvigorated the industry, seeing mortgage brokers upskill and diversify to create stronger businesses and better-serviced clients. “Commercial broking requires different skills than mortgage broking, with commercial clients needing finance three times a year, compared to home mortgages reviewed every two to three years,” says Thomas. “This extra client care can create new and interesting challenges for brokerages wishing to expand, especially as they attempt to balance winning new business with servicing existing clients.” Thomas adds, “Our highly skilled bankers, BDMs and credit specialist teams across the country are currently supporting brokers to deliver better customer outcomes through comprehensive education and training programs.” In 2023, NAB piloted face-to-face broker credit workshops with several aggregators. Due to its success, these training programs will be rolled out across aggregators in 2024, with additional resources available on digital platforms.

Investing in technology and security

NAB has taken strides to simplify and enhance its policies and processes. “We’ve made significant investments in technology for brokers. Our digital home lending platform continues to deliver faster turnaround times – some in as little as 24 hours from lodgment to formal approval,” explains Brown. “We have had numerous examples over the past few months from brokers and customers where we delivered an outcome within an hour.”

NAB has also helped to better support customers through education, including cybersecurity and fraud prevention. NAB Economics data reveals that 40% of Aussies were contacted by their bank about a potential scam payment in the year to March 2024; 75% of them took some kind of action to prevent losing money. The bank has a security hub where brokers can find webinars and up-to-date information on keeping their businesses safe. Since September 2021, NAB has prevented or recovered more than $260 million in scam losses for customers.

“We’ve been supporting business customers to detect more suspicious behaviour by extending the use of BioCatch biometrics technology to NAB Connect, and we’re offering free cybersecurity protection to eligible small business customers for a year with global cyber firm CrowdStrike,” says Thomas. Brown adds that, whether it’s navigating challenging market conditions, protecting their businesses and customers against scams and cybersecurity threats, or through the specialist bankers available, NAB is able to lend a hand. “Ultimately, NAB is the bank behind brokers. And we will continue to support our network now and into the future,” Brown says.