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Banks and brokers face imminent online clash

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Australian Broker | 02 Apr 2012, 07:00 AM Agree 0
Australian Mortgage Brokers' outgoing CEO Paul Gollan has said online mortgage sales will define broking this decade - and that banks will want to own them
  • Thomas | 02 Apr 2012, 10:24 AM Agree 0
    Yep like all things, internet will start to play a bigger role. NBN will make video interviews commonplace. The newer generation of borrowers already see internet business as normal. Whether it penetrates as much as 50% is debatable, but it will penetrate and quickly. Already has. 5 years ago online lending failed. But now its starting to work. UBank and are already seeing good results. Its only going to get faster and easier and more common as old consumers are replaced by new consumers, and the NBN makes it easier to do.
  • Rach | 02 Apr 2012, 10:40 AM Agree 0
    I think 50% is unrealistic in teh short term... A huge majority of my business pre application is done electronically, but when it comes down to it, if it's geographically possible, I think most customers (even the youngest) still get a feeling of comfort having met their broker - I also thinks it helps us, as brokers, forge a greater bond for repeat business and referrals.
  • Country Broker | 02 Apr 2012, 11:23 AM Agree 0
    I agree that in the long term this will be the percentage , I do have some issues as a fully licenced broker in regards to client Id and knowing your clientrequirments. NBN will have a role to play in the future . The predicted roll ou in NON METRO areas is between 18 months and 8 years! Yet 305 of all mortgages are written outside NON METR locations.
    I believe we will need to see the borrower once but all the preliminary work can be done on line BUT I think to fully comply with the NCCP requirments we will need to meet a client at least once , and so will any bank,
    The other issue is FRAUD, the online system is open to credit , income and identity fraud, we will see the banks wanting this space until there have been some fraud cases which burn them badly .
    Time will tell.
  • ozboy | 02 Apr 2012, 11:28 AM Agree 0
    If the banks want to own this space they will just make sure that brokers are not allowed to conduct video interviews as some/most do already. Bit hard to take ownership if you are not allowed to do it. We will need aggregators and industry bodies to start working on this immediately.
  • sidbroker | 02 Apr 2012, 12:30 PM Agree 0
    This would also probably mean that the fraudsters will target the online and leave the honest brokers alone.
  • Gordon | 02 Apr 2012, 01:28 PM Agree 0
    It will be very easy for the banks to control this space as soon as consumers are happy with the idea of purchasing a home loan online. Just check out Bankwest's web page and the first home loan listed is there online home loan with their lowest rate offered online. I know of a broker who have already lost business to Bankwest online as their client has gone online to check out Bankwest and have found a better deal than the broker was able to offer.
  • Gus | 02 Apr 2012, 01:53 PM Agree 0
    UBank, which as we know is NAB, has been doing this for sometime. Its the cheapest form of the distribution models for Banks so of course it will be their eventual preferred method.
  • sidbroker | 02 Apr 2012, 08:32 PM Agree 0
    Dear Ozboy, The banks rule the agregators and the Industry bodies. They will do precious little and one day when they no longer have a business what will they do for their next trick. Nothing the same as always.
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