More than 50 million cyberattacks launched by hackers on the digital channels of National Australia Bank (NAB) prompted the chief executive of the big four banks, Ross McEwan, to warn mortgage brokers: “We are not not the only ones to be attacked.
Speaking online via NAB’s Forward View event – bespoke speech and Q&A with representatives from Australia’s mortgage brokerage industry – Mr McEwan addressed the topic of cybersecurity, given the investment increasingly important to the bank in prevention and frankly reported on the magnitude of the problem.
“We have a big investment in the bank, and then next year it’s up about $100 million from last year,” Ross confirmed.
“Part of it has to do with something very current right now, which is also cyber fraud and scams. I mean, we’re attacked as a bank over 50 million times a month, attacks on our digital channels.
“And that’s something our broker community really needs to watch out for when you‘run your own businesses.
“It’s not just us [that’s] will be attacked.
“These people are criminals.
“They’re after customer data so that’s something we’re spending extra money on and we’re also spending money to make sure that all the basics of KYC for anti-money laundering and others are in place.
“And that’s our commitment for ’23 and ’24 [getting] The basics [right]using technology to simplify or improve interactions, so we can actually spend time having great conversations with customers.
“I’m pretty excited about the program that we‘I have…”
Our mortgage business will continue to do very well, I believe, but only with the support of our broker.
“Sixty percent of our volume now comes from the broker community, many thanks for that“, Mr. Ross said.
“The world is changing for all of us right now – and we all just have to make sure we‘I do what is necessary with the customers…”
on the other side of the mirror
NAB’s Forward View event – about a month after the release of its full Market Megatrends report – focused on the third-party channel and featured advice, discussion and information on the latest trends to help [broker] companies “adapt and grow in a dynamic market”.
NAB’s senior executives and industry leaders included NAB CEO Ross McEwan; Anja Pannek, CEO of the MFAA; Alan Oster, NAB Group Chief Economist; Dean Pearson, head of behavioral and industrial economics at NAB; NAB executive – distribution broker Phil Waugh, among other staff.
In terms of current economic conditions and the “real impact” currently on borrowers in general and the perceptions the bank could provide through its channels and research, Mr McEwan offered a valuable reality check in a media context. more strident.
“You kind of see two worlds right now, the one you hear in the news or the one you see in the papers versus what the clients themselves say to both our fellow brokers and to ourselves when we go out to see them,” he explained.
“So if you look at customers, yes, they’re being hit with higher interest rates because loans aren’t fixed rate anymore – and just remember a lot of customers are ahead of payments, so the The impact is, yes, it hurts, but it’s a far cry from what the papers are talking about.
“Secondly, they all have jobs. The labor market remained very strong, which is positive for clients who borrowed.
“With the unemployment rate…at 3.4 or 3.5%, that’s the lowest we’ve seen in a long time and when customers have jobs, they tend to pay off their mortgages.”
Safe as houses, or are they?
“We are now starting to see house prices come down, probably around 5% this year and there will be more next year, but we have seen a 21% increase in house prices. [in] 2021.
“We are seeing good growth. That’s now changing quite dramatically and customers, as they step out of their two-year fixed rates or their standard variable rate go up, are asking themselves ‘Am I on the best plan?’ – and you know they obviously come to their broker to see what you can do for them.
“And I think that’s the market we’re going to be in for at least the next two years, so we were very aware of that and I think we’re ready to take care of our fellow brokers as well as the clients, at the as they come to us – but most clients are in good shape.
The strength of business customers
Echoing comments filtering through the industry about SMEs and others, Mr McEwan stressed that NAB’s corporate clients are “surprisingly resilient”.
“And today, for both personal and business customers, we see no issues in either of those parts of our business.”
“Now we think there will be some increase in payments coming [in] 2023 and 24, but it’s not known yet, so it’s a good market.
“Full employment helps, but clients feel some pressure.
“They are feeling the pressure of higher energy costs; higher fuel costs in their car; higher cost of food in the supermarket – everywhere they go, prices go up.
“And over time, they start to change their behavior.
“It’s something the broker community will see when you do reviews with clients,” he commented.
[Related: As home loans fall, NAB eyes business lending ‘homeland]