Access to credit
In today's fast-paced financial world, near prime lending is emerging as a vital solution, challenging the traditional banking sector's rigid lending standards. Tony MacRae, Bluestone's Chief Commercial Officer, highlights this innovative approach designed for those slightly missing the mark on conventional creditworthiness criteria. We explore Connective Elevate’s near prime lending, its increasing relevance in the current economy, and its role in transforming mortgage brokers' strategies to include a wider range of clients.
The essence of Near Prime lending
Near prime lending caters to a diverse group that, despite being creditworthy, doesn't fit into the traditional banking framework. This includes the self-employed, individuals with variable incomes, multiple income sources, or a history of financial hurdles. MacRae emphasises that near-prime lending acknowledges these individuals' creditworthiness, offering them a chance to access funds for various purposes like business expansion, home purchases, property investments, or renovations. The importance of this lending category is growing as economic conditions and work preferences evolve, expanding the near prime customer base.
Market dynamics and economic impact
The near prime lending market is experiencing significant growth, driven by an increasing number of people who do not meet traditional lending criteria. Despite the challenges brought on by rising interest rates and inflation, near prime lending remains a practical option for many, aiding their progression to prime loans. This resilience highlights the crucial role of near prime lending in maintaining and bolstering the broader financial market, particularly during economic uncertainties.
Broker education and empowerment
Our strategy includes a strong focus on educating mortgage brokers about near prime lending. Through a variety of initiatives like webinars, policy sessions, and specialised training, we aim to enhance brokers' understanding and ability to serve near prime customers effectively. This education, combined with hands-on workshops and increased support from you CHL Business Development Managers (BDMs), is key to connecting non-traditional borrowers with the necessary funding.
Innovative products and technology integration
Connective Elevate’s near prime loan offerings are distinguished by their adaptability, catering to PAYG or self-employed individuals with clear credit histories but not fitting the prime loan criteria. The commitment to streamlining and digitising loan processing is evident in our approach, focusing on removing redundant procedures, enhancing broker interactions, and employing advanced technologies. This not only speeds up decision-making but also improves the overall customer experience.
Near prime lending represents a significant shift towards more inclusive and adaptable financial solutions, reflecting a profound understanding of the evolving needs and preferences within the financial sector. MacRae's insights into Connective Elevate’s dedication to this segment showcase a commitment to offering flexible, responsive lending options. For mortgage brokers, this opens new opportunities to support a broader, and more diverse customer base.
