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Mooney Financial Services Managing Director Nardia Barrett. Mooney Financial Services Managing Director Nardia Barrett.
22 June 2017 Posted by 

When it comes to banks, big isn't always better

WHILE there are benefits that come with larger banking oganisations, more businesses and individuals are discovering there are also advantages to working with smaller lenders.
“Smaller lending organisations do not have the advertising budgets or shop front advantages that larger lending organisations are privy to,” according to Mooney Financial Services Managing Director Nardia Barrett.
“To secure the business, they need to be competitive in all areas, including rates, fees charged to clients and customer service. 
“This also means the majority will go above and beyond to ensure a smooth transaction and ease of service.”
Ms Barrett said a wider range of clients appeared to be gravitating to smaller lending organisations than in previous years. 
“Rate and fees are generally key drivers when proposing products affiliated to smaller lending institutions, along with quicker approval times and flexible policies,” she said.
“Some clients simply want a more personalised approach than they feel they are getting from the larger organisations. They want to be treated like a person and not just a number.”
Ms Barrett said security was a factor that had dissuaded people from banking with smaller organisations in the past.
“Consumers can be nervous when they have banked with larger corporations for many years,” she said.
“Larger lenders can seem more secure than a lender they haven’t heard of. But now more clients are turning to brokers for advice and guidance when it comes to lending.
“Brokers have access to a multitude of lenders, including the bigger banks, second tiered lenders and non-conforming institutions. 
“A broker’s main goal is to find a product that best suits their clients’ needs and, when a smaller lender fits with a client, a broker can advise accordingly.
While interest rates are always a factor in borrowing decisions, Ms Barrett said educated modern consumers took other factors into account as well.
“Smaller lenders set their own policies when it comes to lending money to clients, and these policies can differ from those that are offered by the larger banks,” she said.
“While rate can be a huge deciding factor when a client is deciding on a product, having access to smaller organisations does have its advantages when a client does not fit the mould expected by the larger banks.”
That doesn’t mean that consumers are turning their backs on the big banks. In my experience, clients can sometimes prefer to keep their everyday banking products with larger organisations,” Ms Barrett said. 
“Although this seems to be changing as clients become more comfortable with smaller organisations. 
Some businesses are also looking to smaller institutions for lending solutions.
“Increasing numbers of small businesses are seeking asset finance, short term and cash flow loans from smaller lenders,” Ms Barrett said.
“Smaller lenders seem to understand that not all businesses are alike. They offer a wide range of products to suit different needs and different stages of business.”
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