In today’s low credit growth environment, brokers should focus on what they can control, says Choice CEO, Stephen Moore.
In an interview with Australian Broker sister publication MPA, Moore says it’s easy to think things are pretty grim if you’re looking solely at current growth and comparing it to historic levels, but says brokers shouldn’t get discouraged.
“Over the next period, we do expect relatively low credit growth. My perspective is that, whilst it’s interesting as a broker to understand the macroeconomic trends, the key determinant for a broker’s success is in fact at a local level.”
Moore says Choice franchises in areas ranging from major cities to regional locales – and even in some of the tougher markets, like the Gold Coast – are ‘overflowing’ with business at the moment.
“So my advice to brokers is to focus locally, focus on what you can control, rather than get caught up in the macro market numbers. It’s interesting in our market. If you look at current growth levels versus historical growth, you’d think the sky’s falling in. We’re only tracking at 5% growth rather than 15%. But it’s growth. If you worked in travel, hospitality, building and construction, much of retail, and your industry’s expected to grow at 5% you’d be over the moon. It’s a strong growth market.”
“We derive our numbers from RBA. By our numbers, the broker market is tracking at circa 45-46% of total home lending, and we have every expectation that we’ll hit 50% in the coming period - so a solid growth market when it comes to the credit market, and an increasing share by brokers in that market. It really is a strong segment to be in.”
To view the full interview with Stephen Moore, look out for the upcoming edition of MPA Magazine.