OnDeck records 70% growth in broker-generated loans
Leading online small to medium enterprise (SME) lender OnDeck, has achieved 70% year on year volume growth in broker channel lending, following a restructure that has seen a tripling of its broker Business Development team.
Mr Michael Burke, Head of Sales, OnDeck, says, “The broker market is a significant pillar of support for Australian SMEs, and we expect our broker-generated lending to continue to outpace our other channels well into the future.”
As part of its push into the broker channel, the past 12 months have seen OnDeck join a number of aggregator panels, including FAST.
“FAST and OnDeck are a natural fit for one another. FAST is the leading commercial aggregator in the Australian market, and OnDeck is the largest international online lender to SMEs, having lent over $12B to more than 100,000 customers, with a proven compliance regime and strong shareholder backing. FAST’s profile in the market aligns with our value proposition of being the first-choice lending partner for Australian SMEs,” said Mr Burke.
OnDeck’s expansion into the broker channel has been accompanied by an expanded Business Development team, more than tripling the headcount since the start of the year. OnDeck has sourced its new Business Developers (BDs) from the ranks of its most experienced sales team.
Mr Joshua Edmondston, OnDeck Business Development Associate for NSW and ACT, says, “Our approach to recruitment, and the experience each BD brings to the role, gives brokers confidence that we know our products and processes thoroughly, and are skilled at solving SME challenges.”
The Banking Royal Commission has been a key driver for brokers to explore commercial lending.
“Brokers are now more prepared to look beyond the traditional home loan market. Commercial loans don’t just add a revenue stream however, they also allow brokers to deepen the client relationship and act as broader provider to their customer base,” added Mr Burke.
OnDeck offers a range of resources to support broker expansion into commercial lending. This includes the option to leverage co-branded or white label marketing collateral. Key support, however, is provided by BDs.
“We might be an online lender, but for us that’s never at the expense of customer service or broker contact. We encourage brokers to partner with their OnDeck BD,” said Mr Edmondston.
“OnDeck is about long-term relationships with our broker partners. The growth of our broker channel, coupled with our success with repeat enquiries, is testimony to the high level of support we offer brokers.
“We really act as an extension to the broker’s team. Reflecting this, we always triage broker enquiries upfront so that their customer won’t have an unnecessary credit enquiry recorded on their credit file, and to save the broker valuable time,” added Mr Edmondston.
Broker case studies
“I have recommended OnDeck products to a variety of my SME clients. Their speed of delivery is remarkable, and the pace at which OnDeck assesses applications and provides access to capital shows that they understand the needs of small business,” said Mark Redgewell of Loans Warehouse Australia.
“For me as a broker, exploring a new market was confronting – and I wasn’t sure initially that I had the time to get up to speed with what was involved in commercial deals. OnDeck streamlined the process, providing outstanding support through my dedicated Business Developer and workshopping the details with me. It has given me the confidence to add this revenue stream to my business, and I haven’t looked back,” added Carmen Gomez from Mortgage Achievers.