Singapore's growth is exploding and to cope with demand, banks have outsourced the front end banking.
In many economic cycles of boom and bust, the retail banking sector has evolved with the time. As more and more banks came into the home loan market, the bank?s margins became challenging.As banks only mark up slightly above their cost of funds, this liberation of credit and financing fueled investments and asset prices.
This included property prices inflation.
Singapore home loans margins are very little. But why do banks still do it?
Banks still lend out for home loans because in any economy, residential home loans form a large part of a country?s economic activity. This is a high volume activity despite the low margins.
Many rounds of cost cutting and retrenchments meant that the banks are really short of staff. Helplines are no longer manned by real people, instead you will go through endless hours of wait while listening to, ?Your call is important to us, please hold on, our consultants will attend to your call soon.? And worst of all, ?Please press * to hang up or call us back between 9 to 5pm.?
Bank tellers are replaced by ATM machines.
Singapore banks wanted to retrench bankers and stay lean
In order to cope with the uncertain demand, banks have outsourced the front end banking. They pay Singapore mortgage consultants like us a fee for handling the advice, processing and follow up of the home loans. This way, they minimize the issue of a hire and fire culture at the banks, not that the banks cared, at the end of the day, it?s about profitability.Banks do not really like home loan consultants that much. As a mortgage consultant works for the client?s interest and that means we represent the client rather than the banks. So it is in a way, a twisted outcome from the bank?s promotional activity. Banks prefer to work with property agents which has less concerns for their clients.
Service Satisfaction drops with retail bankers
Service satisfaction with banks soon dropped, banking loyalty which were in the past held by people to people relationship no longer holds as there is simply not enough bankers. But the banks will not start employing bankers as they want to stay lean.Staying lean means that you cannot expect to maintain professional long term relationship with any banker.
Of course banks still need to stay profitable
In order to stay competitive while also profitable, banks came up with many possible combinations. While property buyer mortgage consultants are working for the benefit for the client, we are not against banks making money. And we are not advocating that banks cut rates or prices outright. Ultimately the banks will still need to make money. So we strongly encourage the Singapore banks to be innovative and create unique and useful features that matches the client?s needs. This way, they deserve better margins!As more and more packages became available, the layman will have problems sifting through hundreds of home loans. So property buyer mortgage consultants can help you to compare Singapore home loans.
www.PropertyBuyer.com.sg is a Research Focused Mortgage Advisory that helps people to find Home Loans or Refinancing Loans. We do NOT simply emphasize cheap loans, but rather we use a balanced Risk versus Benefit approach and match that with the Home Owner?s financial circumstances to create the best fit and customized home loan. Call us at 6100-0608, Email us at: loans@propertybuyer.com.sg or contact us at: http://www.PropertyBUYER.com.sg/contactus.php
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