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As recently reported by Mortgage Business, federal Treasurer Jim Chalmers gave ANZ the approval to acquire Suncorp’s banking division.
Now, experts are weighing in on the merger. With two powerhouses teaming up, processes are sure to see a shake-up. According to Hello Funding broker Ashley Fisher, the merger could allow for better opportunities for borrowers.
“Both Suncorp and ANZ are great banks with good policies and processes already but joining forces will hopefully create strength in all areas, especially Suncorp now being owned and backed by a larger lender,” she said.
“The merger will create an increased market presence, especially for Suncorp, which may hopefully put pressure on other major lenders regarding pricing and polices, which will benefit current and new mortgage customers to take advantage of these possible changes across all lenders.
“It will be interesting to see if both lenders will make a positive change regarding their current product and rates as-well. This would be a win for both Brokers and customers giving them more to work with and more options available.”
The opportunity for cost savings for borrowers is a hopeful sign. Agreeing with Fisher, Agile Market Intelligence director Michael Johnson believes the future looks promising in the wake of the merger.
“In more recent years, and particularly since the merger announcements, we’ve seen both ANZ and Suncorp significantly improve their broker experience and turnaround times over the last few years,” said Johnson.
“Both lenders are now highly competitive with other major and non-major banks compared to their standings in 2020 and 2021. In the short-term, we’re conscious of the potential impacts that the transition will have on brokers as systems, procedures and personnel changes occur. Looking further long-term, competition in the residential mortgage market is vital for consumers and we hope to see this continue.”
This plan has been in the pipeline for some time, as it was announced two years ago that something was in the works. The merger is expected to move quickly, with changes slated for the end of July.
The acquisition of Suncorp Bank would see ANZ’s $298 billion residential loan book expand by $53 billion (to $351 billion). This would make it the third-largest major bank, pushing NAB down to fourth place (with a book of around $319 billion).
It’s not all looking positive, however. Effie Nicol, broker at Yellow Brick Road, noted that the plan could come at a disadvantage to borrowers as it restricts choice.
“Based on my experience, I anticipate that initially, there won’t be too many disruptions in how I work as a broker. However, in the long run, past lender mergers have shown that they tend to integrate their systems and processes, which limits choice for our customers,” she said.
“I would be happy if ANZ and Suncorp maintain their individuality instead, as it provides us with more options for our customers, each with their own niches.”
For others, it’s business as usual. GB Financial finance broker Niti Bhargava believes the decisions of the lenders are of little significance to brokers.
“In the broker industry, the merger news is very familiar now. From a broker’s perspective, we always work in the best interest for our client regardless of lender type. We have been very receptive in the past with some major mergers so our focus is always our clients, their needs and their best interest. So, while these mergers could change the balance sheet and strength of the brands in the back end for brokers it’s business as usual,” said Bhargava.
The outcomes of the decision remain to be seen. A merger of this calibre hasn’t been witnessed since CBA acquired Bankwest in 2008. Over a decade later, the two remain separate and operate independently. Whether the ANZ-Suncorp merger follows suit is up in the air.
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