Kiwibank just over a month away from entering adviser market

Kiwibank says it is on track to roll out its mortgage adviser proposition and Covid-19 has not delayed it.

Thursday, September 17th 2020, 12:20PM 3 Comments

Indeed, Kiwibank chief executive Steve Jurkovich said the current pandemic has helped reinforce the importance of good advice.

Kiwibank has signed up one dealer group already - although it won’t disclose which one.

Also, its proposition is build around a SaaS (software as a service) model which will make it different from other banks.

Again it is not naming which SaaS service it is using, but says it will help advisers with turnaround times, knowing where deals are at and provide better clarity around the process.

He expects to announce more details on its proposition in four to six weeks time.

Jurkovich would not be surprised more than 50% of home loan originations are coming from mortgage advisers, as some in the industry has speculated.  

He said in times like this borrowers want to speak to people and get expert advice.

In the 12 months ending June 30 Kiwibank grew its mortgage book at a faster rate than the market. Lending growth ran at 9% compared to market growth of 5%.

Jurkovich says the housing market has been stronger than expected and potentially put the growth down to a number of factors including more first home buyers and many New Zealanders returning from overseas.

What is driving the lending growth is a little unknown he says.

While mortgage deferrals were running at around 20% across the banks, Kiwibank had a much lower rate of 13%. Jurkovich says it's also been encouraging that many of its customers who have been contacted want to get back on track with paying dowi their debt.

Tags: Kiwibank Mortgage Advisers Steve Jurkovich

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Comments from our readers

On 17 September 2020 at 1:56 pm valkyrie6 said:
I hope Kiwi bank is not accepting customer applications direct from dealer group CRMs based in Australia that are managed and owned by Australian real estate companies, would not be a great look for a kiwi owned bank, the majority of these group advisers won’t be disclosing to customers where and whom has and is holding their personal banking data which is a basic requirement under the current Privacy act and enforced by the new regulations.
On 17 September 2020 at 4:31 pm valkyrie6 said:
Didn’t a large dealer group make it compulsory for all its advisers to send deals through their cloud-based CRM to BNZ saying this will speed up assessment times? When it’s actually made the turn around times worse as the CRM generated applications are of poorer quality, so really it was just the group trying to control and isolate their own advisers making it harder for them to make a decision of having their own FAP license or changing groups, or submitting applications using their own skill and experience.
BNZ were party to this compulsory CRM submission via a cloud-based system owned and based in Australia, 90% of these customers will have no idea their private banking information is being held off shore because it’s just not being disclosed to them, you can check the majority of these advisers disclosure statements and it’s just not there, and BNZ are ok with this ?.
On 20 September 2020 at 3:22 pm Amused said:
Well said Valkyrie6. Where our customers personal & financial information is stored & who can see & access this information is going to become a big issue for a great many advisers under licensing. A lot of mortgage advisers in Australia have now moved away from dealer group owned CRMs due to privacy concerns with some banks in Australia actually making this a condition of accreditation.

I hope that the dealer group mentioned in this article negotiating with Kiwibank understands that the commission & clawback model offered by Kiwibank will need to be at least equal or superior to the lenders who already choose to deal with advisers. We don’t want a repeat of what happened when BNZ was allowed to re-entered the market & within a short space of time clawbacks at first BNZ and then Westpac dramatically increased. Based on past history if given the opportunity banks will reduce adviser commission or increase clawback periods. I really don’t want to see our industry shooting itself in the foot once again because the dealer group in question is only focussed on its own business & not the industry as a whole.

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