Highlights from 2018's non-major bank research
Momentum Intelligence’s Third Party Lending Report surveys brokers on their sentiment towards banks. These sentiments are quantified with performance metrics that brokers rank from 1 to 5 with 5 being the highest. The results found in the Third-Party Lending Survey have a direct result to banks providing a quantifiable inclination of brokers and hence the flows that these brokers are going to bring to the banks.
Non-Major Bank 2016 v 2017 - Top 5 performers
ING Direct has had a hard fall from the top, falling from first to sixth over the one-year period. Bankwest however has stood tall to propel above the rest and have a sizeable increase from 2016 to 2017. With this however, the 2016 to 2017 Non-Major report shows that there has only been a 0.1% drop in overall sentiment whereas the Majors have seen almost a 10% drop across average sentiment from 2016 to 2017.
The drop-in performance from the Major banks indicates the Non-Majors maintaining performance over the 2017 financial year and this is reflected in the average broker sentiment, this will lead to more flows through the broker channel in 2017 for the Non-Major Banks. This could be the start of trend of brokers swaying away from the Major banks in years to come.