Brokers turn to automation as borrowers surge

Loan Market has recorded an 11% quarterly increase in brokers using automated communications this year in a bid to retain relationships in an ultra-competitive real estate market.

Loan Market’s affiliate and Australia’s largest real estate network Ray White hosted 750 auctions during the weekend’s ‘Super Saturday’ of auctions, with 86% of properties selling under the hammer in a record for the Group.

The rising competition amongst buyers is increasing the number of pre-approved borrowers who are taking longer to purchase. 

Loan Market brokers issued more than 89,000 content-driven emails pieces through its automated marketing solution, Nurture, up until March.

Nurture has so far saved brokers an average of 16 hours per month in time spent crafting messages that appeal to the client’s own situation and keeps them engaged. The automated marketing solution schedules regular, personalised communications between the broker and their clients that’s specific to their needs: first home buying, investing and upgrading. When the client is ready to transact, the broker is best-positioned to win their business.

Loan Market’s Executive Director Andrea McNaughton said: “When market activity spikes and brokers are overwhelmed with enquiries, maintaining relationships is time-consuming”.

“Every enquiry has the potential to be a lifelong relationship. But with auction turnouts swelling and clearance rates nudging 80%, more brokers have customers who are taking longer to proceed to settlement.

“Loan Market’s pre-approval volume in the December quarter was 42% higher than the same period in 2020; no broker wants these relationships to slip through the cracks.

“Through Nurture, our brokers are saving time by maintaining important connections with automated content that educates and helps the client in their journey.”

Sending tailored content to customers that appeals to their financial situation – first home buying, investing, upgrading and refinancing – can take brokers up to five minutes per email, according to Loan Market.

At the same time, Loan Market’s brokers can service new enquiries as they come through the door.

“Amongst Loan Market’s core promises to brokers is to save them time and help them find and keep new clients,” said Mrs McNaughton.

“There are some brokers in the network who have won back the equivalent of a week’s worth of time by using Nurture’s smart automation solution.

“It lets brokers service the current increased demand with confidence that when their customers are ready to proceed, the connection they’ve cultivated over time will convert to a potentially lifelong relationship.”