If you want an idea of how comparison sites will impact the Australian market, look to the UK, says RateCity.
Michelle Hutchison, spokesperson for RateCity, told Australian Broker Online comparison sites would eventually dominate the market, with “most people using them to compare loans,” she said.
“We’re about three years’ behind the UK, where price comparison sites are hugely popular: most people there wouldn’t dream of applying for a loan or credit card without visiting one.”
“We believe Australia will catch up quickly,” she said.
Hutchison believes online mediums are “an attractive tool for consumers – it’s empowering, the information is readily available and accessible,” she said.
“People can much more easily log on and see how their current loan measures up.”
Loan applications through RateCity’s online portal have increased by 35% in the past year alone.
"I think brokers are worried it will take away some of their business, and with good cause," she said. "Although, people will always want someone face-to-face to help them through a big process."