Firstfolio sees online 'quantum shift'

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Consumers have undergone a 'quantum shift' toward online transactions, Firstfolio has suggested.

Firstfolio chief executive Mark Forsyth has told Australian BrokerNews the company's online sales platforms have seen substantial growth as more consumers shift their focus away from traditional face-to-face transactions. Forsyth said the company sees between 25-30% of its sales from its online channels, a shift which he believes represents changing consumer sentiment.

"We've seen a quantum shift in the last quarter. There's a sense now if you buy something in a retail store you're getting ripped off," he commented.

As more broking businesses and lenders move online, Forsyth said consumers become increasingly comfortable with the idea of doing business on the web.

"When I see competitors, I think 'happy days'. We don't want to be the only people convincing the public it's safe to go online of do their transactions online," Forsyth said.

While online channels could represent competition for brokers, Forsyth indicated that most clients with needs beyond a "white picket fence deal" would still seek out the advice of brokers.

"My advice for the broker is he has to become a better consultant. He has to actually sit there and add value. We're providing the tools, so they don't have to worry about developing online platforms. What they should be focused on is their own personal skills at consulting with the customers," he said.

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  • oldBroker on 26/08/2011 12:56:45 PM

    No, the legislation states that if there is a credit advisor then this advisor must adhere to NCCP guidelines. If the consumer goes online and chooses their own products, then there is no advisor.

  • mortgageandlease on 26/08/2011 11:15:12 AM

    Excuse me for being just a bit confused here. Doesn't the new NCCP legislation (and AML to a lesser degree) state that all clients should be seen face to face (Skype not acceptable in most instances either). How is this so, if even the clients don't want it?

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