ING DIRECT looks to third-party with super product

This quarter the bank hopes to launch a ‘light version’ of its superannuation product, Living Super, into the financial advice space and plans to engage mortgage brokers through a referral arrangement, ING DIRECT head of third party distribution Mark Woolnough said.

“We are continuing to explore how the mortgage broker can help build the awareness and visibility around this product for their customer, given the integral role that brokers play in the financial life cycle of their customers,” Mr Woolnough told Mortgage Business.

“The bank has a very strong superannuation proposition for customers known as Living Super, which was first introduced as a direct product,” he said.

“It has been very well accepted by our existing customers and allowed us to attract a number of new customers to ING DIRECT.”

Mr Woolnough confirmed the lender is focusing its efforts to understand the regulation and compliance around the ability for brokers to converse with customers about the Living Super product.

ING DIRECT recently launched a broker referral program, which Mr Woolnough said will be fundamental to the distribution of new products.

“What we found is if you imbed or integrate the products as part of the credit application, where the customer essentially ticks a box or gives their consent for the bank to contact them to talk to them further around the product to see if it suits them, then that allows us to do the work independently,” Mr Woolnough said, adding that brokers essentially act as a lead generator for the bank.

“Some will have more ability to control the distribution themselves, however where that is not possible, they will have the option to refer the customer to the bank and to share in the reward and value that is created, plus the referral fee,” he said.