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Sony Bank ‘not a threat’ to Australian brokers

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Australian Broker | 09 Jul 2012, 08:00 AM Agree 0
Experts believe Japan’s Sony Bank is unlikely to pose a threat to mortgage brokers, following last week’s announcement of its plans to launch in Australia
  • Country Broker | 09 Jul 2012, 10:36 AM Agree 0
    Very hard to see how a broker customer would change to an on line application suitation, customers come for advice and to discuss their requirments. This is why brokers have such a large market share. This will probably see more competition for the borrower who wants to and always was going to go on to a direct on line application.
    They are not our market unless they find the on line application process that difficult they will end up with a broker anyway.
  • Damien | 09 Jul 2012, 11:19 AM Agree 0
    Sony would be well advised to review just how unsuccessful Virgin's attempt at the same strategy was. If Sony seriously want market share,they would embrace Brokers, not ignore them. Just another Ubank
  • KT | 09 Jul 2012, 11:30 AM Agree 0
    If price is the ONLY consideration, people will flock to it. Unfortunately many FHB and younger borrowers are thinking that way. It is the mortgage brokers role to ensure borrowers are not sucked in by cheap rates alone.

    Borrowers need to think about product features (offset vs redraw), to cross or not cross-collateralise, to fix or not fix rates, think about repaying your loan in such a way that you don't miss out maximising your options when it comes to refinancing some time down the track.

    These things brokers should be good at and adding value to their clients and it is something I'm sure online channels will not be able to provide
  • Phil from Brisbane | 09 Jul 2012, 12:56 PM Agree 0
    They (Sony Bank) will do better than anyone is saying. The brokers , consultants and advisers tend to promote their own self interest,rather than the customer.The terms and conditions of many offers skew all the risk onto the customer and a high by world standards profit to the lender and broker . Customers now realise this is the new normal in the global economy and can compare online whats on offer and the terms and conditions as a best fit for their needs.
  • Mark Hewitt | 09 Jul 2012, 01:10 PM Agree 0
    We do need to be very conscious that consumer behavior is changing fast and going forward people will be more and more willing to source a home loan online. Fulfillment is still a challenge but it won't be that way for ever and that is why AFG is investing in systems and tools to help its members with the evolving online world. Other brokers need to ask their aggregator what they are doing to help them.
  • Garry | 09 Jul 2012, 02:10 PM Agree 0
    If they are foolish enough to use an online system without proper and professional advice then they deserve to get stung. Not the client type I deal with so it will never affect me. I wish them all the luck as they will need it.
  • A Broker | 09 Jul 2012, 03:15 PM Agree 0
    I wonder if Sony Bany will give away a free TV or PlayStation with every new loan sold?
  • Potentia Capital | 09 Jul 2012, 05:57 PM Agree 0
    The more competition the better for brokers as the banks will need brokers more. At the moment we are not an important distribution Chanel. The more important we become the less need to drop commissions.
  • KT | 09 Jul 2012, 10:46 PM Agree 0
    Garry.....I know what you mean....some FHB's are a waste of my time
  • The Observer | 05 Sep 2012, 12:32 PM Agree 0
    There is without doubt a market for the online product that is being promoted out there and it is usually directed to the PAYG and non SME market segment. What I would like to know is how much time is spent on these customers and their conversion ratio. Whilst not my market, I know that FHB segment requires a great deal of time upfront and given the smaller loan sizes, I always felt you seem to spend most of the UFC. Finally, a client you secure on price is the one you usually lose on price especially now that early exit fees are gone.
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