Third party origination continues to grow
(13 February 2008 – Australia) There can be no doubt that third party origination in business banking continues to grow strongly, and is now an entrenched channel in servicing the financial needs of Australian businesses. East & Partners’ latest SME Banking Markets Report reveals that a substantive 38 percent of SMEs sourced business banking product through a broker over the past six months. Five years ago this figure was closer to 6 percent.
The combination of extremely competitive business banking markets, increasingly demanding SME customers and the push by the sizable mortgage originators and aggregators into the commercial space, will see this trend continue. The challenge for financiers is to truly understand this highly fragmented and not particularly transparent sector, and to develop clear strategies to effectively manage and optimise engagement with third party originators. In particular, the current "flight to quality" occasioned by the US sub-prime crisis infecting global markets and the funding models of non-bank lenders in the Australian markets, have introduced another dynamic to get this equation right.
In response to the demand for clear competitive guidance based on high quality market intelligence in this area, East & Partners has initiated a comprehensive review of third party distribution in business banking which will deliver, for the first time, a clear picture of the third party market and the key drivers of that channel.
The review will provide a customer view in terms of broker usage and selection, products sourced, satisfaction and reasons for using a third party. On the supply side, market size, segmentation, characteristics, financier selection and relationship, pricing and incentives, channel conflict, cross selling and global practices will be covered. Deliverables will include market diagnostic research and analyses, client specific conclusions and insights and individual in-house briefings. Clients will have the option to customise aspects of the review to address their specific needs.
The window for "early-bird" subscribers to participate in this review at a significant discount to the post release publication price is now closing. Clients interested in subscribing to this groundbreaking review should contact Alan Blake immediately at alan.b@eastandpartners.com
In response to the demand for clear competitive guidance based on high quality market intelligence in this area, East & Partners has initiated a comprehensive review of third party distribution in business banking which will deliver, for the first time, a clear picture of the third party market and the key drivers of that channel.
The review will provide a customer view in terms of broker usage and selection, products sourced, satisfaction and reasons for using a third party. On the supply side, market size, segmentation, characteristics, financier selection and relationship, pricing and incentives, channel conflict, cross selling and global practices will be covered. Deliverables will include market diagnostic research and analyses, client specific conclusions and insights and individual in-house briefings. Clients will have the option to customise aspects of the review to address their specific needs.
The window for "early-bird" subscribers to participate in this review at a significant discount to the post release publication price is now closing. Clients interested in subscribing to this groundbreaking review should contact Alan Blake immediately at alan.b@eastandpartners.com
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