Heading into 2014 ING Direct's Mark Woolnough and Finsure's John Kolenda predict positive outcomes for brokers.
Video transcript below:
Mark Woolnough, Head of Broker Distribution, ING Direct
Mark Woolnough: Brokers are really enjoying the benefits of a professional industry now, which is drawing the consumer into their models and into their businesses. We are seeing consumers want to collaborate more with brokers. They want the advice, but they want help with the advice, they want to feel involved, having a broker model perfectly suits that.
John Kalenda, MD, Finsure
John Kalenda: The broker market share appears to be increasing and I think is likely to hit over 50% which is a huge milestone, an achievement and something brokers should be very proud of.
Mark Woolnough: I think it’s a real perfect storm almost for brokers at the moment, low cash environment, rising house prices, consumer confidence is up, competition is all around us, more of the lenders are actively looking to build their representation in the industry.
John Kalenda: Last quarter of last year, we saw a lot of competition amongst lenders, where they were offering high commissions and incentives. With that I think we are going to see that some of the lenders are here come back and increase their commission sometime this year in order to maintain some of that market share.
Mark Woolnough: Also the continuation of the convergence conversation I predict will continue and get stronger. We are starting to see benefits now of business models that have embraced, the new way to help consumers look at their total financial needs over an extended life cycle, rather than just concentrate on the very transactional nature.
John Kalenda: We are seeing that greater convergence of mortgage broking and planning coming together and brokers looking to offer broader financial services offerings to their customers. So I am seeing that’s going to be a big part of what brokers get more deeply involved with for 2014.
Mark Woolnough: Some of the areas which will continue to gain momentum and prominence will be the new broker, the emergence of the new broker, the new blood, the fresh blood that exciting new element and outlook into the industry which I think is needed and I predict that the brokers and specially the aggregators will really look at ways to foster the next breed of advisor for the Australian community and I think that’s really important. We have seen that conversation over the last few years, we haven’t seen a lot of activity, some businesses have taken it upon their own shoulders to bring in new talent and to grow their model for sustainability and longevity which is fantastic, but I think the big players in the industry really need to make some serious investment.