The Australian and New Zealand financial landscapes are changing.  The concentration on compliance and responsible lending is pivoting institutions away from simply fighting for home loans to increase market share and profitability.

Banks must now work towards empowering their customers to make the right financial decisions; managing costs, insurance rates, fees, serviceability- the entire spectrum of daily living- so that New Zealanders make decisions that will work long term and sustain the economy.

The question then becomes, how do you grow market share, while ticking the compliance box?

  1. Enticing customers with rates : longer term low rates create a certainty for customers, making payments manageable and allowing time to adapt to market changes, as well as ensuring banks are making the right lending decisions.
  2. Empowering with insights: working through the myriad of insights available online, and understanding what’s actually accurate can make for murky waters.  If banks can provide trusted insights to customers then the benefits are many:
    1. Understanding the value and potential of their property, limits over-investment that cannot be maintained or leveraged
    2. Comparing and contrasting to the surrounding area – is the value consistent with the suburb?  By allowing the customer to see if they are taking on something sits outside the norm, you are giving them the chance to see if they can profit or conversely, off-load if necessary
    3. Giving an accurate estimate of rental income builds confidence that you can cover mortgage repayments if you are unable to occupy the property, as well as providing investors with a roadmap of investment potential
    4. Property history allows the customer to clearly see if their potential home has been consistently off-loaded, and ask more calculated questions about any possible problems – from change in value over time, to structural issues, to whether it’s a nice place to actually live
  3. Focus on ‘market perceptions’: Building customers understanding of how a bank can help a customer, for the end to end home loan experience, how the relationship can work (from personal approach to digital approach: whichever works for the individual) , to the consistency of process steps will give the customer the support and confidence they need to make the right decisions with the right financial institution.

Corelogic is a supplier of robust and audited property data.  Supporting financial institutions for over 15 years, it works with clients to help Australians and New Zealanders find, acquire and protect their properties.