Broker channel players making inroads into consumer deposits

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Go-to broker lenders are expanding their focus on consumer deposits – and having success, according to a recently released report.

McVay and Associates – a firm that tracks the growth trends for various financial services companies – released its latest market shares report, which pointed to broker channel lenders’ growing market share for deposit-taking products.

Its research found that three major broker lenders – HomEquity Bank, Equitable Bank, and B2B Bank – have all seen significant growth in their direct banking segments.

Most recently, Equitable Bank launched EQ Bank, which offers savings a savings account that boasts as 3% interest rate.  The product is called The EQ Bank Savings Plus Account and offers a no-fee, no minimum balance option for savers. 

“EQ Bank is the latest in a long list of Direct Banks that have met with varying degrees of success,” McVay and Associates said in its report, which was shared with MortgageBrokerNews.ca. “This month we look at the business models that have been most successful.”

According to McVay’s report, Equitable Bank’s deposit taking business grew by 12.7% over the past 12 months for the month ending November, 2015 in terms of total personal market share.

Similarly, B2B saw 13.1% growth over that same time period.

For its part, HomEquity saw 13.2% growth.

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