Australian Mortgage Brokers outgoing CEO Paul Gollan has said online mortgage sales will define the mortgage broking industry this decade - and banks will ant to own it.
Speaking with Australian Broker Online, Gollans said there is 'no doubt' that online mortgage sales will be the defining issue of the next decade, following his 12 years at the helm of AMB.
"My view is that over 50% of mortgages will be arranged in a non-face-to-face environment within in the next five years, ten years at the latest," he said.
Gollan said the 'missing link' at present is effective customer identification without a face-to-face meeting, which he says that companies are working on getting around.
"This will happen because consumers will demand it," Gollan said.
"The boom in social networking is a clue to how many people are interacting now and given the choice between organising a mortgage online and or over the phone, or visiting an office or having someone visit them, the shift will be towards the least intrusive distribution model," he said.
Gollan has warned the broking industry to grasp this shift - or risk losing power to the banks.
"Banks will want to own this space of course and get a competitive advantage over brokers," he said.
Gollan to depart AMB after 12 years