KPMG report asked consumers to rate their home loan experiences, with brokers coming second on all fronts
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KPMG report asked consumers to rate their home loan experiences, with brokers coming second on all fronts
Borrowers who used a broker rated their experience as worse than those who used a bank, a new study by KPMG has found.
KPMG’s Mortgage Report surveyed 622 ‘mass affluent’ consumers - those earning between $70,000 - $250,000p.a - on their mortgage preferences. Existing borrowers who had used a broker rated their experience as worse than bank customers in all of KPMG’s six pillars of customer service: empathy, personalisation, integrity & trust, simplicity, expectations and resolutions.
44% of those surveyed by KPMG used a broker, below brokers' current market share of nearly 54%. KPMG noted the difference: “This is lower than the national average indicating an opportunity for banks to target mass affluent customers through their proprietary channels. “ Middle-aged consumers were more likely to use a broker (45%) than the under 30s (31%).
KPMG’s report is limited by the fact KPMG surveyed 622 of their own employees, thereby discounting the self-employed and business-owning clients who may have a particular reason to use a broker. Given KPMG is a financial services firm, it is questionable whether the level of financial knowledge of a KPMG employee can be taken as an Australian average.
MPA surveyed a number of income-groups in our Consumers on Brokers report and found some differences between the ‘mass affluent’ consumers and the rest. Those earning more than $80,000 were more prepared to do their entire mortgage application online: 38.5% would, as opposed to 28% of those earning less than $80,000. Other than that, MPA’s survey found no evidence that wealthier consumers were less likely to use a broker.
KPMG’s Mortgage Report also found that whilst 87% of their respondents used digital channels to research home loans, 45% preferred to apply in a branch. 61% of respondents renegotiated their home loan at least once every five years, showing the continued important of refinancing.
Borrowers who used a broker rated their experience as worse than those who used a bank, a new study by KPMG has found.
KPMG’s Mortgage Report surveyed 622 ‘mass affluent’ consumers - those earning between $70,000 - $250,000p.a - on their mortgage preferences. Existing borrowers who had used a broker rated their experience as worse than bank customers in all of KPMG’s six pillars of customer service: empathy, personalisation, integrity & trust, simplicity, expectations and resolutions.
44% of those surveyed by KPMG used a broker, below brokers' current market share of nearly 54%. KPMG noted the difference: “This is lower than the national average indicating an opportunity for banks to target mass affluent customers through their proprietary channels. “ Middle-aged consumers were more likely to use a broker (45%) than the under 30s (31%).
KPMG’s report is limited by the fact KPMG surveyed 622 of their own employees, thereby discounting the self-employed and business-owning clients who may have a particular reason to use a broker. Given KPMG is a financial services firm, it is questionable whether the level of financial knowledge of a KPMG employee can be taken as an Australian average.
MPA surveyed a number of income-groups in our Consumers on Brokers report and found some differences between the ‘mass affluent’ consumers and the rest. Those earning more than $80,000 were more prepared to do their entire mortgage application online: 38.5% would, as opposed to 28% of those earning less than $80,000. Other than that, MPA’s survey found no evidence that wealthier consumers were less likely to use a broker.
KPMG’s Mortgage Report also found that whilst 87% of their respondents used digital channels to research home loans, 45% preferred to apply in a branch. 61% of respondents renegotiated their home loan at least once every five years, showing the continued important of refinancing.
