NAB has announced it will be training tellers to provide ‘lite’ financial advice as part of its strategy to increase its share of the mortgage market.
The major bank’s market share has increased from 13.3% to 15.3% in the past three years. By offering further in-branch financial advice NAB hopes to continue to grow this figure, says NAB’s executive general manager retail Vicki Carter.
''Most of the mortgages that we write out are with our existing customers. We know if we look after our 24 to 30-year-olds' wealth, help them with their first foray into credit, help them as they need that lite advice and simple superannuation and so on, that they will become our future mortgage customers," Carter told
The Age.
As more customers choose to use internet banking for simple transactions, the purpose of branch staff has shifted more towards providing advice, says Carter.
''The reality is that a lot of Australians won't pay $4000, $5000 for a financial plan,'' she says. ''But many Australians still need help with simple rollover products, their superannuation products and their simple protection needs. That is unfilled at present, so … this is actually a gap in the market.”
NAB currently employs qualified financial planners across 15% of its branches, and will continue to refer customers requiring more complex advice to them.
''We don't see our wealth referrals changing for more sophisticated needs and, in fact, they are at record high numbers currently.''
NAB’s mortgage book grew 6.9% in the past month, compared to the broader mortgage market which grew 5.5%.
NAB’s group executive for personal banking Gavin Slater said the bank was determined to grow “in the right way” and would not loosen lending standards or risk settings in order to grow market share.
