Brokers currently control around 43% of the market, and Deloitte partner James Hickey has stated they are not likely to see this market share move much in 2012.
“[Broker market share] has probably been in equilibrium for awhile. There are always going to be years where it moves a bit higher, but it's in a pretty steady state and it's been there for a number of years,” Hickey said.
This doesn’t mean, however, that brokers can’t see good volumes in the year ahead. Hickey said fierce competition between lenders could deliver benefits to brokers in 2012.
“The great news is that a lot of consumers are seeing a lot of active marketing and increased awareness that the banks are offering a great deal. A lot of consumers are probably going to their broker to say 'How do I make sense of all this?’” he said.
The price wars also carry a downside. With funding costs set to remain high and lenders scrambling to maintain profits amid lower credit growth, brokers could be the ones feeling the pinch in 2012.
“Banks are looking at cost savings across their value chain, and they could have a look at broker costs across the value chain,” Hickey said.
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