Over the summer period, we carried out a benchmarking study, asking leading brokers about the quality standards of the funders they use.
Results were collated to provide a ranking of 17 funders across six key areas – deal shaping, speed of decision, document execution, speed of payout, overall service quality and broker relationship management.
The 20 responses we received represented annual lending of £1.5bn, around 18% of the broker market and a good representation of the views of some of the largest and most important brokers in the market.
While getting the customer the best rates was the primary reason for placing business with a lender, in one of every five cases speed of decision was shown to be the single most important factor in driving that choice.
Despite this, based on our ranking methodology, in general lenders performed less well on speed to decision than other areas of proposal-to-payout activity. In fact, the market average for lenders was closer to “adequate” than “good”. Four lenders were actually rated below “adequate” – clearly in need of improvement.
From the broker feedback we received, it is possible to conclude that market service standards are not high nor rapidly upward – meaning that effective transformation in this area offers significant commercial and competitive benefit.
To discuss how we can support your prop-to-payout transformation, please contact Mike Foley
