The top executive at BankWest parent HBOS plc has endorsed the aggressive and innovative growth strategy being pursued by the bank in Western Australia and on the east coast.
The top executive at BankWest parent HBOS plc has endorsed the aggressive and innovative growth strategy being pursued by the bank in Western Australia and on the east coast.
The top executive at BankWest parent HBOS plc has endorsed the aggressive and innovative growth strategy being pursued by the bank in Western Australia and on the east coast.
HBOS chief executive designate Andy Hornby, who made a flying visit to Perth last week, also expressed strong support for mortgage brokers.
“The mortgage trends in the UK and Australia are incredibly similar”, the 39-year-old Mr Hornby told the Mortgage Industry Association of Australia’s annual conference.
“The big story is the growth of the mortgage intermediary and I, for one, see little sign of that trend changing. We passionately believe in the power of the intermediary.”
BankWest helped to pioneer the mortgage broking industry more than a decade ago, and Mr Hornby’s comments will serve to reinforce its support for the broking channel.
In terms of winning support from mortgage brokers, Mr Hornby said he put a high priority on offering simple, value-for-money products with competitive pricing. However, he said a bigger factor was sales support and efficient processing.
“I think, in Australia and the UK, the ultimate winners in the mortgage market will swim or sink according to their back office,” Mr Hornby told the conference.
“Really efficient, slick back office processing will always be the ultimate differentiator.”
Mr Hornby said another big factor in HBOS’s success in the UK mortgage market, where it was the market leader, was its belief in having multiple brands.
“We believe you need four to five, maybe even six brands one day, to consistently take 20 to 25 per cent share of the mortgage market,” he said.
Commenting on HBOS’s retail initiatives, Mr Hornby said: “We were prepared, as a bank, to say we do things other banks don’t do.
“I think it gives a good indication of what good value-for-money products, backed up by very aggressive marketing, can do in UK financial services or Australian financial services.”
Looking ahead, he said Australia and Britain faced similar trends, including pressure on housing affordability as prices increased, pressure on lending margins, the continued emergence of low-cost direct sales channels, and increasing regulation, which would add to costs.