As the industry moves towards digitalisation, customers seem to prefer speaking with advisors rather than visiting bank branches, especially during the COVID-19 crisis. As a result, advisors remain indispensable as they continue to account for a growing share of mortgage loans originated by banks.
According to Good Returns, mortgage advisers’ share of loans at ANZ has jumped from only 35% two years ago to 43% in the first half of the 2020 financial year. Meanwhile, their share of loans at BNZ increased from 25.3% in March 2019 to 29.2% in March 2020.
Antonia Watson, chief executive of ANZ, explained that more customers prefer speaking with advisers than going to bank branches because they want to talk to someone before making a significant financial decision. She revealed that advisers are now closer to writing 50% of ANZ’s home loans, although she did not predict when the advisers would hit the 50% mark.
“It’s driven by customer choice,” Watson told Good Returns. “It won't be long before you can get your home loan online.”
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ANZ revealed that its net profit for the six months ending March 2020 dropped by 15% from $896 million in the same period last year to only $789 million, thanks to bad debts on the expected impacts of the pandemic.
On the bright side, ANZ has been helping customers to get back on their feet through interest rate deferral, loan structure, and interest-only options.
The bank has provided financial aid to approximately 30,000 personal, home, and business loan customers through repayment deferrals or adjustments. It has also moved 20,900 home loans to interest-only and deferred 19,600 home loan repayments.