Does size really matter?
When Michael Walls, from Access News, asked my opinion about bigger banks vs smaller lenders I jumped at the chance to be involved in an article he recently published for Western Sydney Business Access.
While there are benefits that come with larger banking organisations, more businesses and individuals are discovering there are also advantages to working with smaller lenders.
“Smaller lending organisations do not have the advertising budgets or shop front advantages that larger lending organisations are privy to,” according to Mooney Financial Services Managing Director Nardia Barrett.
“To secure the business, they need to be competitive in all areas, including rates, fees charged to clients and customer service.
“This also means the majority will go above and beyond to ensure a smooth transaction and ease of service.”
Ms Barrett said a wider range of clients appeared to be gravitating to smaller lending organisations than in previous years.
“Rate and fees are generally key drivers when proposing products affiliated to smaller lending institutions, along with quicker approval times and flexible policies,” she said.
“Some clients simply want a more personalised approach than they feel they are getting from the larger organisations. They want to be treated like a person and not just a number.”
Ms Barrett said security was a factor that had dissuaded people from banking with smaller organisations in the past.
“Consumers can be nervous when they have banked with larger corporations for many years,” she said.
“Larger lenders can seem more secure than a lender they haven’t heard of. But now more clients are turning to brokers for advice and guidance when it comes to lending.
“Brokers have access to a multitude of lenders, including the bigger banks, second tiered lenders and non-conforming institutions.
“A broker’s main goal is to find a product that best suits their clients’ needs and, when a smaller lender fits with a client, a broker can advise accordingly.
Click here to read the full article.