Diversification as a lifeline for advisers
Having a number of irons in the fire is a key strategy for advisers to ride out New Zealand’s evolving financial landscape, unlocking new revenue streams and strengthening client relationships
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WHAT DO a DVD rental service, a coffee-bean seller and a failed video-dating website have in common? They’re the unlikely origins of some of today’s most successful global companies.
Businesses large and small have found their niche by pivoting away from initial strategies in the face of a changing environment. Without this adaptability, Netflix would still be a DVD-by-mail service, Starbucks would not have any cafes, and YouTube would be a niche matchmatching site called ‘Tune In, Hook Up’.
These firms would be also-rans, at best, if they hadn’t realised that the chances of the environment adapting to suit their initial business models were much lower than the odds of success through reinvention.
Prospa is New Zealand’s small business online lending specialist providing market-leading capital products and solutions to help Kiwi small businesses grow and prosper. Established in 2012 in Australia and 2018 in New Zealand, Prospa ensures applications are simple and funds can be accessed within 24 hours. Its cash flow products and services allow small businesses to grow and take advantage of opportunities to run their businesses or help them pay for goods and services.
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In Partnership with
Julian Fayad, founder and chief executive at LoanOptions.ai, offers insights into the current lending landscape for brokers.
“Over the past 12 to 18 months in New Zealand, there has been a steady interest in non-residential lending, particularly driven by the pressures and opportunities within the commercial, business and consumer finance sectors.”
Fayad notes that this trend is influenced by broader economic factors and shifting market conditions. “[It] is influenced by fluctuations in the economy and the need for businesses to adapt to changing market conditions, as well as consumers seeking to consolidate debts to help manage their cash flow, which often require more flexible and diverse financial solutions.”
Adrienne Begbie, general manager at Prospa NZ, provides further context for the changing demand for SME lending.
“We’ve seen a significant shift in SME lending demand, reflecting the difficulties New Zealand businesses are navigating, but business sentiment is slowly changing,” she says.
Begbie highlights recent data from the Reserve Bank of New Zealand that shows a positive turn in SME business loan growth. “SME business annual loan growth increased to 0.5% – its first positive growth rate since June 2023,” she says. “Though modest, this uptick signals SMEs are adopting a proactive stand against the challenges and are increasingly seeking financial support.”
RBNZ’s data on non-bank sector lending also showed a notable increase in business lending, rising from $8,903 million in June 2023 to $9,378 million in June 2024.
“Despite growing awareness, only 19% of businesses consider alternative lenders for loans. This gap presents an opportunity for advisers”
Adrienne Begbie,
Prospa NZ
Much like in nature, success in business isn’t always about toughing it out until conditions improve. Those who can diversify and adjust to the shifting landscape end up outcompeting less agile rivals.
As New Zealand’s financial landscape becomes more complex, many advisers are looking for similar ways to tap new business and keep growing in a weak economy. With rising demand for non-residential lending, particularly from small and medium-sized enterprises seeking flexible financing, advisers are diversifying beyond traditional residential loans to opportunities in business lending and other areas.
The shift towards non-residential lending comes amid post-pandemic recovery challenges like inflation, rising costs and labour shortages. Non-banks are stepping in to offer tailored solutions that go beyond traditional credit assessments, leveraging technology to streamline the process. For advisers, embracing diversification means adapting to more complex business financials and industry-specific risks, but it also opens doors to new revenue streams and stronger client relationships in an evolving market.
Industry experts
Camilla Tumai
Bizcap NZ
Ryan Edwards
The Adviser Platform
Geoff Bawden
The Adviser Platform
Adrienne Begbie
Prospa NZ
Industry experts
Adrienne Begbie is managing director at Prospa New Zealand, where she leads the team and drives local business operations. With nearly 20 years of experience in financial services, including nine years at Resimac, she has a proven track record in small business banking, sales management, insurance and loans. Begbie was pivotal in establishing Prospa’s New Zealand presence in 2019. A passionate advocate for Kiwi small businesses, she is dedicated to unlocking their potential and building strong partnerships across the country.
Prospa NZ
Adrienne Begbie
With 40 years’ experience in the finance industry, Geoff Bawden joined The Advisor Platform after the acquisition of his mortgage aggregation business, Q Group. As head of mortgage adviser distribution, Bawden helps advisers strengthen and grow their mortgage businesses by sharing his decades of expertise and best practices and leveraging his long-standing relationships with lenders and suppliers.
The Adviser Platform
Geoff Bawden
Ryan Edwards has been with The Adviser Platform for over six years. And, with over 15 years’ experience in the financial services industry in Australia and New Zealand, he has a great track record of working with advisers to help them develop their client service offering and grow their businesses. Edwards and his team are focused on helping New Zealand advisers grow successful, profitable and compliant businesses.
The Adviser Platform
Ryan Edwards
With more than 24 years of dedicated experience in the New Zealand financial services sector, Camilla Tumai boasts a wealth of hands-on knowledge and expertise. From her roles as adviser and business owner to leadership positions within the sector, Tumai has cultivated a deep understanding of the industry’s intricacies. As general manager for Bizcap New Zealand, she leverages her entrepreneurial spirit and extensive industry connections to drive the company’s mission of empowering SMEs across New Zealand with fast access to flexible loans.
Bizcap NZ
Camilla Tumai
Camilla Tumai
Bizcap NZ
Ryan Edwards
The Adviser Platform
Geoff Bawden
The Adviser Platform
Adrienne Begbie
Prospa NZ
Industry experts
Adrienne Begbie is managing director at Prospa New Zealand, where she leads the team and drives local business operations. With nearly 20 years of experience in financial services, including nine years at Resimac, she has a proven track record in small business banking, sales management, insurance and loans. Begbie was pivotal in establishing Prospa’s New Zealand presence in 2019. A passionate advocate for Kiwi small businesses, she is dedicated to unlocking their potential and building strong partnerships across the country.
Prospa NZ
Adrienne Begbie
With 40 years’ experience in the finance industry, Geoff Bawden joined The Advisor Platform after the acquisition of his mortgage aggregation business, Q Group. As head of mortgage adviser distribution, Bawden helps advisers strengthen and grow their mortgage businesses by sharing his decades of expertise and best practices and leveraging his long-standing relationships with lenders and suppliers.
The Adviser Platform
Geoff Bawden
Ryan Edwards has been with The Adviser Platform for over six years. And, with over 15 years’ experience in the financial services industry in Australia and New Zealand, he has a great track record of working with advisers to help them develop their client service offering and grow their businesses. Edwards and his team are focused on helping New Zealand advisers grow successful, profitable and compliant businesses.
The Adviser Platform
Ryan Edwards
With more than 24 years of dedicated experience in the New Zealand financial services sector, Camilla Tumai boasts a wealth of hands-on knowledge and expertise. From her roles as adviser and business owner to leadership positions within the sector, Tumai has cultivated a deep understanding of the industry’s intricacies. As general manager for Bizcap New Zealand, she leverages her entrepreneurial spirit and extensive industry connections to drive the company’s mission of empowering SMEs across New Zealand with fast access to flexible loans.
Bizcap NZ
Camilla Tumai
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Adrienne Begbie
Prospa NZ
Geoff Bawden
The Adviser Platform
Ryan Edwards
The Adviser Platform
Camilla Tumai
Bizcap New Zealand
With more than 24 years of dedicated experience in the New Zealand financial services sector, Camilla Tumai boasts a wealth of hands-on knowledge and expertise. From her roles as adviser and business owner to leadership positions within the sector, Tumai has cultivated a deep understanding of the industry’s intricacies. As general manager of Bizcap New Zealand, she leverages her entrepreneurial spirit and extensive industry connections to drive the company’s mission of empowering SMEs across New Zealand with fast access to flexible loans.
Bizcap New Zealand
Camilla Tumai
Ryan Edwards has been at The Adviser Platform for over six years. And with more than 15 years’ experience in the financial services industry in Australia and New Zealand, he has a great track record of working with advisers to help them develop their client service offerings and grow their businesses. Edwards and his team are focused on helping New Zealand advisers grow successful, profitable and compliant businesses.
The Adviser Platform
Ryan Edwards
With 40 years’ experience in the finance industry, Geoff Bawden joined The Adviser Platform after the acquisition of his mortgage aggregation business, Q Group. As head of mortgage adviser distribution, Bawden helps advisers strengthen and grow their mortgage businesses by sharing his decades of expertise and best practices and leveraging his long-standing relationships with lenders and suppliers.
The Adviser Platform
Geoff Bawden
Adrienne Begbie is managing director at Prospa New Zealand, where she leads the team and drives local business operations. With nearly 20 years of experience in financial services, including nine years at Resimac, she has a proven track record in small business banking, sales management, insurance and loans. Begbie was pivotal in establishing Prospa’s New Zealand presence in 2019. A passionate advocate for Kiwi small businesses, she is dedicated to unlocking their potential and building strong partnerships across the country.
Prospa NZ
Adrienne Begbie
Published 21 Oct 2024
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Bizcap is a leading business lender operating in Australia, New Zealand and the United Kingdom. Launched in 2019, the business has dedicated itself to helping SMEs secure the funding needed to grow their operations, having helped over 15,000 businesses to date. With loan options from $5k to $2 million (funded in as little as three hours) and a dedicated support team, we work with our broker partners and clients to make the whole process easy.
Find out more
LoanOptions.ai is an award-winning, market-leading, white label loan matching technology and asset finance broker that simplifies and streamlines the personal, car, business and equipment loan application process for borrowers and lenders. It can be embedded onto other finance systems as a white label product and has helped thousands of mortgage brokers diversify into asset finance and create additional revenue streams for advisers. LoanOptions.ai’s AutoCompleteEngine (ACE) has reduced the loan application process to as little as five minutes by prefilling information and using proprietary technology to match applicants with the best loans tailored to their specific financial situation from a panel of over 88-plus lenders in Australia and New Zealand.
Find out more
The Adviser Platform (TAP) is a full-service management platform offering financial advisers in New Zealand all the tools, support and training to run their advice businesses successfully. Founded by a team with over a decade in financial advice, TAP provides an industry-leading administration support team, a bespoke CRM for advisers, mortgage aggregation, as well as practical regulatory, governance and compliance support.
Find out more
Julian Fayad
LoanOptions.ai
As the founder and CEO at LoanOptions.ai, Julian Fayad leads the development and growth of an innovative fintech platform that simplifies and streamlines loan comparison and matching for customers and lenders. Fayad’s years of experience in the asset finance industry give him a deep understanding of the challenges and opportunities in the loan market. He is passionate about creating solutions that benefit both borrowers and lenders, and making finance accessible and transparent for as many Kiwis as possible.
LoanOptions.ai
Julian Fayad
Shifting trends in SME lending demand
Recent changes in interest rates have impacted lending behaviour.
“With rates coming down, we’ve seen a significant increase in the approval-to-settlement rate in July and August,” Begbie says. “As confidence in the future improves, businesses are more willing to proceed with drawing down funds. Many are using these funds for key investments – websites, staffing or additional stock; investments they might have delayed if they were uncertain about the future.”
Camilla Tumai, Bizcap’s general manager for New Zealand, attributes the increased demand for SME lending to a mix of economic factors. “[The] post-pandemic recovery has left many small businesses grappling with cash flow challenges, especially as they adapt to inflation, rising costs and ongoing labour shortages,” she says.
But Tumai highlights that this rise in demand is about more than simple survival. “SMEs are seeking funding not just for survival but for growth, innovation and digital transformation. This heightened demand for flexible financing has positioned Bizcap as a critical partner for businesses navigating these uncertain times, as we look beyond credit scores to consider the story behind each business and adopt our open-minded approach to tailor funding solutions to their unique circumstances and goals.”
Ryan Edwards, managing director at The Adviser Platform, offers his perspective on the changing lending landscape: “With rates increasing and consumer confidence falling, lending and sales volumes have decreased from their dizzy heights of a number of years ago,” he says.
Edwards notes that this shift has created opportunities for advisers to broaden their services. He suggests that advisers can strengthen their businesses by diversifying their offerings, either directly or through referrals, provided they have the necessary systems and processes in place.
Challenges for advisers in a choppy economy
The changing economy gives rise to different lending needs that advisers can be slow to provide solutions for.
“[There is a] failure to understand that the adviser role is about providing solutions for clients that may well step them outside of their traditional mortgage comfort zone,” says Geoff Bawden, head of mortgage adviser distribution at The Adviser Platform.
One lending area that has expanded partly because of higher economic stress is consumer loans. “Banks have tightened policies and become less flexible, which has created opportunities for new-to-market options, and in the last 12 months particularly we’ve seen a number of new players bringing fresh consumer lending options to advisers,” says Bawden.
Financial advisers who venture into other lending areas face a sea of challenges distinct from the residential realm in the current economy. One is weak consumer sentiment and tough trading conditions – including a sharp uptick in business insolvencies this year.
“We look beyond credit scores to consider the story behind each business and adopt our open-minded approach to tailor funding solutions to their unique circumstances and goals”
Camilla Tumai,
Bizcap NZ
For advisers, the complexity of business financials, diverse industry-specific risks, and the need for a more comprehensive understanding of business operations can make SME lending seem intimidating.
A primary hurdle is the increased due diligence required. Unlike residential loans, where personal income and property values often suffice, SME loans demand a deep dive into business plans, cash flow projections and industry trends. This complexity necessitates a more specialised skill set and often a longer processing time.
Fayad elaborates on the challenges faced by advisers in business lending. “Advisers in the business lending space often grapple with a lack of comprehensive, quick-access financial products tailored to varied business needs,” he says. “There are more complex lending
criteria and varying client needs in the business lending space, compared to the more standardised residential lending.”
This knowledge gap can be daunting. “Many brokers feel ill-equipped to handle these challenges due to a lack of experience in commercial banking,” he says.
Tumai concurs with this assessment. “Advisers in the SME space face unique challenges compared to residential lending,” she says. “For one, SME financials are often more complex, requiring deeper analysis of cash flow and profitability. Additionally, SMEs may have varied or inconsistent credit profiles, which can complicate the approval process.”
She emphasises the need for speed in SME lending, noting that “advisers also have to move quickly – businesses often need access to capital faster than residential clients”.
Diversification as a lifeline for advisers
Despite the challenges, more advisers are looking to diversify into new lending areas. A few key strategies can prove invaluable:
Education is paramount. Invest time in understanding various business structures, financial statements and industry-specific metrics
Build a network of industry experts. Collaborating with accountants, lawyers and business consultants can provide crucial insights and referrals
Start small and specialise. Focus on a specific industry or loan type to build expertise before expanding your offerings
Fayad notes the growing trend of adviser diversification. “There’s an increasing trend of advisers diversifying into non-residential finance, drawn by the potential for broader market engagement and higher returns,” he says. “The target is to try and increase the share of wallet and overall stickiness of the client by offering a broader product suite.”
He offers advice for advisers looking to expand their offerings: “We recommend advisers start by familiarising themselves with different business products, leveraging some of the amazing technology that’s available today to streamline processes, and actively participating in professional development events to enhance their understanding of various finance products.”
Begbie confirms this trend and offers strategies for advisers. She says, “We’re definitely seeing a trend of advisers diversifying into SME finance. In fact, our largest cohort of partners actively sending leads and settling SME deals in New Zealand typically specialise in mortgages. This shift is driven by client expectations: small business owners want to be able to rely on their trusted adviser for all their financial needs.”
She emphasises the importance of starting with existing clients. “For advisers looking to transition into SME lending, I recommend starting with your existing client base, as many may be business owners unaware of their options. Educate yourself and your clients about alternative lending options. Despite growing awareness, only 19% of businesses consider alternative lenders for loans. This gap presents an opportunity for advisers to have proactive conversations about business needs and available solutions.”
“There’s an increasing trend of advisers diversifying into non-residential finance, drawn by the potential for broader market engagement and higher returns”
Julian Fayad,
LoanOptions.ai
Tumai echoes this sentiment, pointing out that diversification into SME finance can be simpler than advisers might think.
“Start the conversation: ask your clients about their business needs and challenges to identify lending opportunities. Incorporate this approach into your advice or annual review process to continuously uncover and address their evolving needs.”
She also highlights the importance of leveraging partnerships. “Leverage a trusted partner,” Tumai says. “Bizcap provides the products and expertise allowing you to offer tailored solutions without needing to master the technicalities of business lending.”
Edwards from The Adviser Platform stresses the value of a holistic approach to financial services. He says, “It’s important for advisers to see themselves as providing a rounded offering around protection and wealth accumulation. Running the business as a business and having the processes in place to identify and deliver on options for clients is really important. It’s not about being a jack of all trades; rather the role is one of facilitator or introducer or problem-solver.”
Edwards suggests that advisers should position themselves as comprehensive financial advisers rather than just mortgage brokers. This broader perspective allows them to identify and address a wider range of client needs.
Bawden agrees, adding: “Focus needs to be on running a business and not just requests from customers to arrange a mortgage. If they don’t diversify, clients will go elsewhere, and that puts them at risk of losing their client.”
He emphasises that diversification is not just about expanding services but also about retaining clients and protecting the adviser’s business in the long term.
Leveraging technology and staying ahead of the curve
Fayad highlights the role of technology in some of the lending innovations seen recently in New Zealand. “Technology is crucial in facilitating this diversification, particularly through platforms that provide comprehensive data analysis, risk assessment and loan matching capabilities,” he says. “This allows brokers to efficiently manage a broader portfolio of loan products, catering to both residential and commercial clients seamlessly.”
He elaborates on how LoanOptions.ai is leveraging technology to enhance broker efficiency: “At LoanOptions.ai, our AI-driven tools prefill client information, assess loan eligibility swiftly and integrate with existing systems on a white-label basis, allowing brokers to offer bespoke solutions across different lending types without extensive manual effort.”
LoanOptions.ai delivers technology solutions that enhance broker efficiency and client satisfaction by cutting loan processing times to as little as five minutes and customer data entry by up to 80%, enhancing accuracy in matching loans to client needs at the same time.
“It’s not about being a jack of all trades; rather the [adviser’s] role is one of facilitator or introducer or problem-solver”
Ryan Edwards,
The Adviser Platform
Bizcap actively seeks ways to support viable businesses in achieving their goals using a unique credit assessment model to gain a holistic view of each customer’s financial situation and business opportunities. New products are also key to its strategy.
“We will soon be launching Bizcap’s Business Line of Credit in New Zealand, which puts funds at the fingertips of small business owners. With Bizcap’s Business Line of Credit, small business owners can access up to $150,000 via an online portal, drawing down on funds whenever they need them – without having to apply each time – and only paying for what they use.”
Begbie shares insights on Prospa NZ’s innovative products: “At Prospa,
we’re constantly evolving our product offerings to meet the changing needs of SMEs. To date, one of our most popular innovations is the Prospa Business Line of Credit – and it’s actually the two-year anniversary since we launched it. This funding product is unique as it provides businesses with ongoing access to funds that they can use and reuse during uncertain economic conditions, paying interest only on the amount they draw down.”
Prospa is also launching a new product, an expanded capital product offering designed to better serve SMEs. “This new offering includes extended five-year terms for larger business loans, an increased limit on our Business Line of Credit up to $500k, unlimited extra repayments on business loans, and an easy, low-doc application process for loans up to $250k. These new flexible, accessible and tailored solutions reflect our commitment to help New Zealand SMEs ‘Make Business Happen’,” says Begbie.
Edwards emphasises the critical role of technology in facilitating diversification. “Tech can play a big part,” he says. “Data is king, and being able to harness your database to both identify and execute other service offerings is key to make it successful. In addition, the onboarding or delivery of products and services by providers has become far more efficient as tech solutions meet the needs of our online lives.”
He explains that The Adviser Platform’s system is designed to help advisers identify areas in which to diversify, provide access to partners and suppliers, and offer reporting and tracking to ensure visibility over the services in place.
Empowering advisers through education and support
Successful lenders recognise the importance of empowering their adviser networks. Comprehensive marketing materials, regular training sessions and easy-to-use digital platforms are becoming standard offerings. These resources not only help advisers navigate the complexities of non-residential lending but also enable them to educate their clients effectively.
Fayad stresses the importance of technology in solving common problems faced by brokers. “Common problems include data-handling errors and lengthy processing times, as well as managing varied client expectations and understanding different market dynamics,” he says. “LoanOptions.ai addresses these by automating data entry and matching clients with suitable lenders quickly, enhancing client satisfaction and freeing up brokers to continue their professional development.”
Tumai outlines Bizcap’s approach to adviser support: “We provide a comprehensive suite of marketing materials and educational tools, including adviser cheat sheets, case studies and marketing templates for social media, email, SMS and Google Review requests, to help advisers effectively communicate the benefits of SME lending to their clients and grow their personal brand.”
She explains the value of the education and support Bizcap provides: “Additionally, we offer training sessions, webinars and one-on-one consultations to ensure advisers are confident in offering our products. These resources not only educate advisers but also give them the tools to expand their client base, generate more conversions and build stronger, long-term relationships with SMEs.”
“[There is a] failure to understand that the adviser role is about providing solutions for clients that may well step them outside of their traditional mortgage comfort zone”
Geoff Bawden,
The Adviser Platform
Edwards highlights the importance of celebrating the work of advisers. “A challenge for brokers – and the industry as a whole – is to celebrate the amazing work advisers do and the importance of receiving advice,” he says.
He suggests that advisers who position themselves with a rounded offering across multiple services can not only diversify their businesses but also help a multitude of different clients in different ways.
“Moving away from the traditional ‘mortgage broker’ pigeonhole and leaning towards a broader title of ‘adviser’ allows the client to engage with advisers on other areas.”
Bawden emphasises the support provided by The Adviser Platform.
“Our pragmatic approach to governance and compliance allows our clients to thrive in this new regulatory environment and grow their businesses with confidence,” he says. “We’ve got a data migration team that has moved over 60,000 client files from all other systems in the market this year, which takes the sting out of making the change.”
This support system helps advisers transition smoothly into new areas of lending while maintaining compliance with regulatory requirements.
Opportunities on the horizon
The next 12 months promises further evolution in the non-residential lending landscape. If economic conditions improve, borrowing appetite for growth and expansion projects that were previously put on hold may resurface.
“Over the next year, I anticipate greater integration of technology in lending, with more personalised loan products coming to the forefront as well as the use of AI to help improve efficiency and risk,” says Fayad. “I also expect the growth in demand for diverse lending products to continue as businesses seek to navigate economic recovery and growth phases.”
He recommends that advisers prepare for these changes: “Advisers should prepare by staying informed on market trends, continuously updating their knowledge of financial products and embracing technologies that enhance their service delivery.”
Tumai offers her perspective on the upcoming changes. She says, “Over the next 12 months, I expect to see further tightening of lending criteria among traditional and institutionally backed lenders, alongside ongoing growth in the demand for SME lending, driven by economic volatility and a greater need for business resilience. As other lenders tighten their criteria, Bizcap will continue to seek out opportunities to support viable businesses, saying yes when others say no.”
Advisers are key to non-banks continuing to expand their role in non-residential lending, as the bulk of non-banks’ business comes through the third party channel.
“They have a critical role in supporting SMEs, which is why we’ve invested heavily in our adviser channel,” says Begbie. “About 70% of our New Zealand business comes through this channel. And we work with advisers very closely to give them the tools and questions they need to reach their customers. A lot of our marketing material is designed to help them engage with their database effectively.”
Total non-bank lending by sector
Agriculture
$849m
$889m
$902m
$922m
$916m
Jun 2023
Sep 2023
Dec 2023
Mar 2024
Jun 2024
business
$8,903m
$9,036m
$9,090m
$9,458m
$9,378m
Housing
$5,535m
$5,221m
$6,266m
$6,054m
$5,817m
Consumer
$6,718m
$6,796m
$7,022m
$7,046m
$6,996m
Source: Non banks: Funding and claims by sector (T4), RBNZ
business insolvencies Jump in 2024
516
542
502
568
700
Jun 2023
Sep 2023
Dec 2023
Apr 2024
Jun 2024
Source: BWA Insolvency Quarterly Market Report, June 2024 quarter
In Partnership with
Julian Fayad
LoanOptions.ai
As the founder and CEO at LoanOptions.ai, Julian Fayad leads the development and growth of an innovative fintech platform that simplifies and streamlines loan comparison and matching for customers and lenders. Fayad’s years of experience in the asset finance industry give him a deep understanding of the challenges and opportunities in the loan market. He is passionate about creating solutions that benefit both borrowers and lenders, and making finance accessible and transparent for as many Kiwis as possible.
LoanOptions.ai
Julian Fayad
Julian Fayad
LoanOptions.ai
As the founder and CEO at LoanOptions.ai, Julian Fayad leads the development and growth of an innovative fintech platform that simplifies and streamlines loan comparison and matching for customers and lenders. Fayad’s years of experience in the asset finance industry give him a deep understanding of the challenges and opportunities in the loan market. He is passionate about creating solutions that benefit both borrowers and lenders, and making finance accessible and transparent for as many Kiwis as possible.
LoanOptions.ai
Julian Fayad
Advisers are key to non-banks continuing to expand their role in non-residential lending, as the bulk of non-banks’ business comes through the third party channel.
“They have a critical role in supporting SMEs, which is why we’ve invested heavily in our adviser channel,” says Begbie. “About 70% of our New Zealand business comes through this channel. And we work with advisers very closely to give them the tools and questions they need to reach their customers. A lot of our marketing material is designed to help them engage with their database effectively.”
Advisers are key to non-banks continuing to expand their role in non-residential lending, as the bulk of non-banks’ business comes through the third party channel.
“They have a critical role in supporting SMEs, which is why we’ve invested heavily in our adviser channel,” says Begbie. “About 70% of our New Zealand business comes through this channel. And we work with advisers very closely to give them the tools and questions they need to reach their customers. A lot of our marketing material is designed to help them engage with their database effectively.”
The rollout of open banking may also accelerate the growing impact of advisers.
“Open banking is speeding up this shift, with New Zealand regulators actively promoting its adoption, says Begbie. “Open banking will make it easier for small businesses to share their financial data with lenders. This means faster loan approvals and more tailored options. It’s also likely to shake up the market, with fintech companies using this data to offer more competitive terms.”
As the SME lending landscape continues to evolve, those who can recalibrate quickly and leverage the unique advantages of emerging technology or the flexibility that non-banks offer will have more opportunities to expand their businesses.
“With ongoing economic pressures, we’re likely to see a greater emphasis on alternative lending solutions and flexible, tech-driven lending products that can quickly adapt to changing business needs,” says Begbie.
“Success going forward hinges on being adaptable and always learning.”
Because as anybody who understands evolutionary theory will know, it isn’t the biggest or meanest who proliferate but those who can find and best adapt to a particular niche.
Fayad highlights the role of technology in some of the lending innovations seen recently in New Zealand. “Technology is crucial in facilitating this diversification, particularly through platforms that provide comprehensive data analysis, risk assessment and loan matching capabilities,” he says. “This allows brokers to efficiently manage a broader portfolio of loan products, catering to both residential and commercial clients seamlessly.”
He elaborates on how LoanOptions.ai is leveraging technology to enhance broker efficiency: “At LoanOptions.ai, our AI-driven tools prefill client information, assess loan eligibility swiftly and integrate with existing systems on a white-label basis, allowing brokers to offer bespoke solutions across different lending types without extensive manual effort.”
LoanOptions.ai delivers technology solutions that enhance broker efficiency and client satisfaction by cutting loan processing times to as little as five minutes and customer data entry by up to 80%, enhancing accuracy in matching loans to client needs at the same time.
Fayad highlights the role of technology in some of the lending innovations seen recently in New Zealand. “Technology is crucial in facilitating this diversification, particularly through platforms that provide comprehensive data analysis, risk assessment and loan matching capabilities,” he says. “This allows brokers to efficiently manage a broader portfolio of loan products, catering to both residential and commercial clients seamlessly.”
He elaborates on how LoanOptions.ai is leveraging technology to enhance broker efficiency: “At LoanOptions.ai, our AI-driven tools prefill client information, assess loan eligibility swiftly and integrate with existing systems on a white-label basis, allowing brokers to offer bespoke solutions across different lending types without extensive manual effort.”
LoanOptions.ai delivers technology solutions that enhance broker efficiency and client satisfaction by cutting loan processing times to as little as five minutes and customer data entry by up to 80%, enhancing accuracy in matching loans to client needs at the same time.
Other lenders are also staying ahead of the curve to provide better service.
“Bizcap is continually innovating to meet the evolving needs of SMEs, focusing on speed, flexibility and accessibility,” says Tumai. “Our fast approvals – within as little as three hours – and same-day funding
provide businesses with the capital they need, when they need it.”