“The basic response is for brokers to understand that they’re not there with an initial focus on making a transaction. They’re there to give advice on credit, and if it’s appropriate and the consumer accepts it, hopefully the transaction will follow. And hopefully many more in the future will follow," Naylor said.
Naylor said a shift from transactional broking to advice-based and relational broking was already happening "on a fairly rapid trajectory". He predicted that this would drive increased consumer demand for brokers.
“What brokers have to realise is that if all they’re doing is offering a transaction, they’re offering no more than three or four other sources in the market. The consumer could go to a bank or a credit union or a building society and get that. They’re putting themselves in a market where there are plenty of other areas the consumer can get the same deal. If they’re offering credit advice, they’re offering something none of these other areas can.”