Finance and Coffee

Your hosts this week are Beth Comino and Esther Angrisano Guest Boris Biskupic - Broker, Mentor, Banker and F&C Moderator since 2018. He has seen alot! Newsworthy Items: (1) Feeding / Using Chat GPT and other AI for some cool things: This week we saw Gordon used ChatGPT and NotebookLM. Dropped a few 2 x Payslips into ChatGPT and asked ChatGPT to help analyse and work out the annualised figures and breakdowns of all the Income line items. Source: Under the "Featured" Tab in the GROUP (2) Shadow Assistant Treasurer wants serviceability buffer reforms:  Howarth said: “Something that we are looking closely at is the APRA serviceability buffer and whether APRA adding on a 3 per cent buffer after 12 interest rate rises is appropriate. Source: https://lnkd.in/gczb5aDy (3) HECS - Treasurer wants banks to relax home loan rules for HECS debts Financial institutions will soon be able to disregard HECS-HELP repayments when assessing an applicant's ability to service their mortgage, under updated lending rules from financial regulators APRA and ASIC. But the new guidelines will only apply if a person is due to pay off their debt "in the near term", a caveat that will be at the banks' discretion. Source: https://lnkd.in/gVyuXZdZ

RedZed appoints new aggregator partnerships lead and launches sales recruitment to drive growth: RedZed, one of Australia’s leading lenders to the self-employed, is delighted to announce Nathan Taddeo’s appointment as ‘General Manager of Sales and Strategic Partnerships’. Appointed General Manager of Sales in October 2024, Mr. Taddeo has led RedZed’s sales strategy and operations for the past four months while managing a team of BDMs and direct sales managers. He will now also oversee RedZed’s aggregator relationships. As a former broker to self-employed clients and a past member of various aggregation groups, Mr. Taddeo is uniquely positioned to support RedZed’s aggregator partners. He will work closely with them to deliver unparalleled service to their members, with a focus on helping brokers tap into the self-employed lending market and diversify into commercial finance. Mr Taddeo said: “I’m excited to work with our aggregator partners. At RedZed, we take great pride in our strong relationship with the broking community, and aggregators play a crucial role in maintaining and strengthening this connection. I look forward to building on the well-established aggregator partnerships already in place, leveraging them to support broker success while driving sustainable growth for RedZed.” Speaking of Nathan’s new role, RedZed’s Chief Sales and Marketing Officer, Natalie Irvine said: “Nathan is the perfect person to manage our aggregator relationships. He is a highly experienced finance professional who takes great pride in his work, operates with integrity, and excels at building relationships and driving meaningful change. We’re excited to see what he will accomplish in this role—for our aggregator partners, their members and our business.” RedZed is also focused on enhancing its product mix and is set to expand its commercial BDM team and commercial offering. Ms Irvine said: “We’re here to support brokers, and there is enormous potential in the commercial space - we want to help our broker partners capitalise on it. Expanding our commercial team led by our experienced National Commercial BDM, Craig Stuart, will allow us to provide greater support to brokers already working in this space as well as those looking to diversify,” Ms Irvine said. This expansion reinforces RedZed’s commitment to growth, building on the lender’s recent rate cuts and key product enhancements—including higher maximum LVRs, streamlined living expense verification, an updated commercial vacant land policy, and changes to its ATO default and debt policy. These initiatives are designed not only to empower brokers with competitive and flexible solutions for their self-employed customers but to help pave the way for investment in new products, technology, and the people and tools required to further elevate the lender’s already high service levels.

New app and website reboot Bankwest for national customer growth: Bankwest has launched a new banking app and website, signalling the next stage of its accelerated digital investment in its brand, products and services, with an ambition to become Australia’s favourite digital bank. The launch builds on Bankwest’s 2024 transition to a digital bank in WA, with a goal to rapidly grow its eastern states customer base, where it has been fully digital since 2021, and where more than half its customers live. • The app and website have been co-designed and developed closely with customers with an aim to deliver intuitive experiences, helping customers know where their money is, move it easily, and hit their property goals. • The app includes a refreshed home screen and a ‘money’ tab to view transactions, new search functionality, and a dedicated ‘property’ tab for home loan information, all with 24/7 in-app support. • A new Virtual Cards feature, available via the app soon, will enable customers to create single or multi-use and time-limited debit or credit cards, offering customers an added layer of protection when making payments. • A new brand platform and national marketing campaign will launch in 2025 to reposition Bankwest in the national banking sector with a fresh, distinct identity and proposition to customers. Bankwest Managing Director Jason Chan said the app and website - built by Bankwest teams - were the foundations for a complete reinvention of the bank’s digital offering to customers and brokers across Australia. “Innovation has been part of Bankwest’s DNA for 130 years, and, today, we have a clear role in the CBA Group as a growth-focused, highly competitive national digital bank, with a fresh and distinctive proposition,” he said. “Our aim is to create a digital banking experience that truly stands out in the Australian financial services landscape, and which is designed to meet the needs of a growing number of customers and brokers nationwide. "We've conducted hundreds of hours of testing with customers and non-customers across Australia and we know there's a significant segment of the market looking for a simpler, less complicated relationship with their bank. "These Australians are telling us they want just the right amount of bank in their lives, one that's working hard behind the scenes to help them manage their money, while they focus their time on what’s important to them. “Our introduction of new technology to help customers tackle scams in 2024 marked the first of a new series of uncomplicated and genuinely useful experiences for customers and there’s much more to come this year. “We have exciting plans to deliver digital banking experiences in our app and website that truly stand out from our competitors and we’re looking forward to unveiling our new national brand campaign to customers in 2025.” Ian Rakhit Hayley Wheeler

The mental health costs of clawbacks revealed With rawness and vulnerability, mortgage brokers have revealed the anger, anguish and personal pain they have experienced due to clawbacks. The comments were provided to CoreData Group as part of the monthly broker poll conducted for the Finance Brokers Association of Australia (FBAA). FBAA managing director and industry mental health awareness ambassador Peter J White AM said the association has led the fight against clawbacks for some time and has seen small gains, but much of the discussion centres around the financial impact. “These responses highlight the personal toll of clawbacks and the uncertainty and unfair loss they represent. “These are real human consequences and I want to ensure that lenders and government read these,” he said. While much of the feedback from brokers focused on the unfairness of the system, the effect on cash flow and the difficulty in budgeting, 28 per cent reported being negatively affected emotionally. One broker said, “Apart from the obvious effect clawback has on cashflow, there is also a psychological toll that it takes on both the business owner and the brokers,” while another, “It is a constant worry in my mind.” “Loss of motivation, loss of productivity, frustration with industry,” was how one broker described their feelings, while another pointed to, “uncertainty in your mental well-being.”   “A very bleak Christmas,” said another, with one broker providing a one word response – “Depression.”   Mr White said while he recognises that change won’t happen overnight, the FBAA continues to advocate for further progress. The poll also suggested a solution, with eight in ten brokers calling for “proportional and/or reduced clawback” while over half “seeing value in establishing national clawback standards.” Mr White urged any finance and mortgage broker who is struggling emotionally to seek help. “This is the reason we established an online Wellness Hub, which provides not only a source of information for brokers, but a way to connect them with someone who can help.”   The FBAA Wellness Hub can be accessed at https://lnkd.in/gixZ_Mwm

Co-Pilot Finance and Insurance: Disrupting the SME Finance & Insurance Game For the first time, finance and insurance are no longer separate conversations for SMEs. Co-Pilot Finance & Insurance (CPFI) is tearing down the old, fragmented approach and replacing it with a bold new model—one that delivers tailored financial and risk solutions under one roof. It’s a game-changer for Australian businesses that have long struggled with limited, one-size-fits-all options. By fusing cutting-edge technology with an expanding national agency network, CPFI is flipping the script on how SMEs secure the funding and protection they need—not just to survive, but to dominate their industries. A Smarter, Sharper Approach to SME Finance & Insurance The traditional finance and insurance landscape hasn’t kept up with the needs of modern SMEs. Legacy providers push rigid products that fail to acknowledge the complexities of running a business today. CPFI is cutting through that noise—embedding itself into local business communities and delivering more than just a transactional service. “SMEs are the backbone of Australia’s economy, yet they often struggle to find financial and insurance solutions that truly work for them,” says George Dib, CEO and Co-Founder of CPFI. “Our mission is to close this gap with an integrated, accessible, and expert-driven approach.” Dib’s expertise in SME finance and business insurance is the driving force behind CPFI’s mission. With first-hand knowledge of the struggles business owners face, he has built an agency model that puts flexibility, choice, and expert guidance at the centre of every decision. CPFI’s Head of Agency and Co-Founder, Peter Magoulias, is leading the charge in scaling this national movement. “Our agency partners are the front line of this change,” Magoulias explains. “We’re giving them the tools to deliver smarter, sharper finance and insurance solutions—so that more business owners can make confident, future-proofed decisions.” Scaling a National Network of SME Specialists CPFI is already operating across New South Wales, Victoria, and Queensland, with 20 agencies signed and a bold target of 100 locations by 2027. Unlike traditional brokerage firms, these agencies are deeply connected to the businesses they serve—offering personalised expertise tailored to the challenges of each local market. Not Just Another Broker—A True Business Partner ** Finance That Works for Business: Access to commercial loans, working capital, and equipment finance, designed with SMEs in mind. **Insurance That Protects Growth: A custom-built range of general and specialised business insurance solutions. **A Smarter Network: CPFI agency partners bring real-world experience and a local focus, ensuring business owners get straight answers—not sales scripts.

Beth solo on today's wrap with guest Daniela Gagliardi Topics that have made the community buzz this week are: (1) RBA Rate movement - whilst its a great opportunity, retention teams will wreak havoc. How does a broker navigate this? Charge a fee? (2) CBA tiered status / service - whilst not the first lender or business in general that does this, from a brokers view, how does this work with BID?

RedZed reduces rates in response to RBA cash rate call RedZed, one of Australia’s leading lenders to the self-employed, announced today that it is reducing its rates in response to the Reserve Bank of Australia Board’s (RBA) decision to lower the cash rate target by 0.25%. RedZed has decided to lower variable interest rates on its residential, commercial and SMSF loan products by 25 basis points for new customers, effective from February 28th, 2025. The changes exclude RedZed’s short-term property solutions loan product. This decision marks the second rate reduction announcement in a week for RedZed, after the lender launched its ‘With love, from RedZed’ campaign last Friday and lowered select rates, fees and loadings. RedZed will also be reducing rates for existing customers and will communicate further details shortly. These enhancements will give brokers additional opportunities to grow their loan books and enable Australian small business owners to achieve their goals faster. RedZed Managing Director Calvin Cordle shared his excitement regarding the announcement. “After launching our ‘With love, from RedZed’ campaign last Friday and reducing select rates, fees and loadings, I’m delighted to share that we are lowering rates yet again for new customers in response to the RBA Board’s February cash rate decision,” Mr. Cordle said. “RedZed is committed to equipping brokers with competitive solutions to offer their clients, and helping self-employed Australians achieve their personal and business goals. These rate cuts reinforce this commitment and our overarching ethos of providing both value and support. “We hope these rate changes will encourage new brokers to consider us and explore RedZed’s offering. Once they do, we’re confident that they’ll enjoy the first-class service our onshore teams provide. “We also look forward to reconnecting with brokers who have previously lodged applications with us and helping them diversify and strengthen their businesses,” Mr. Cordle said. Nathan Taddeo Ellen Brennan

Brass: A New Force in Mortgage Broking Aggregation A new boutique aggregator, Brass Aggregation Pty Ltd, has hit the Australian mortgage market, bringing together a network of top-notch mortgage brokers. Brass Aggregation offers brokers a comprehensive suite of services and support, giving them access to a wider range of lenders, and products than they could snag on their own. This means more options for their clients – a win-win! Brass Aggregation is all about grassroots support, providing a genuine alternative for mortgage brokers. At the helm is Managing Director Marcus O'Brien, a seasoned veteran with over 20 years of aggregation experience and a long-time champion for brokers in the third-party lending space. Joining Brass Aggregation empowers brokers to leverage collective bargaining power for better deals, access exclusive offers, and tap into operational support. Brass also provides marketing, compliance, and tech support, helping brokers run their businesses smoothly and efficiently. Recognising the need for flexibility, Brass operates as a virtual business, allowing brokers to work from anywhere and maximise their client-facing time. Compliance is streamlined using the latest features of market-leading Salestrekker software, and the feedback from current members has been overwhelmingly positive. Brass Brokers receive monthly commission payments, with revenue generated from a diverse panel of lenders across residential, small business, and commercial lending. And for all their asset finance, leasing, and car loan needs, brokers can access the recently launched Brass Broker Asset Hub. Simply put, Brass Broker Aggregation is a game-changer for individual mortgage brokers who know their stuff and want to join a network that provides the tools and options they need to help their clients secure the best loans. The vision? To create "a band for brokers"—a network of like-minded business owners with shared goals and genuine professional relationships.

As RBA decision looms, research highlights fear, uncertainty and desperation among property owners and renters Aspiring property owners are increasingly uncertain about their chances of affording a new home and are willing to purchase with smaller deposits, while the majority of renters fear being forced to move by their landlord, new research commissioned by the Finance Brokers Association of Australia (FBAA) has revealed.   FBAA managing director Peter J White AM said while many of the findings in the ‘FBAA Buyer Renter Index Research’ were not surprising, it emphasises that “the Australian property dream is still well and truly alive, but governments must work harder to help people achieve it.”   The research found that half of those surveyed were planning to purchase residential property in the next five years, while 30 per cent say they can’t afford it during that timeframe.   Mr White said the Reserve Bank (RBA) should also be listening.   “There has not been an interest rate change since 2023 and it would not surprise me if they again left it unchanged this week,” he said.   “But the clear message from this research is that people are crying out for help and support in the area of government and regulatory policies.   “They desperately want to own property but are demanding action to help them.”   He said while the FBAA commissioned research, by CoreData Group, reflected the uncertainty and insecurity felt by many Australians, it was clear that Australians were working hard to achieve their property dreams.   “They don’t want handouts, but they do want policies that make it easier for them, not harder.”   He said an interest rate cut sooner rather than later would be a huge confidence boost, while he repeated the FBAA’s call for the government to intervene and force the regulator (APRA) to immediately reduce the serviceability buffer rate from its current rate of 3 per cent.   Mr White also urged potential buyers to see their broker and get all of the “pros and cons” before purchasing with very low deposits.   “What many buyers don’t realise is that there are often more purchasing options than they realise and some of those options can only be accessed through a finance and mortgage broker.”