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Brokers fight global banking consolidation

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Australian Broker | 07 Jun 2011, 06:00 AM Agree 0
Mortgage brokers worldwide are facing increased competition from banks and their proprietary channels in the wake of the GFC
  • Mortgage Manager | 07 Jun 2011, 12:16 PM Agree 0
    I recently did a full 'competitive analysis' our our industry; involving various resources (BIS-ABS) and tools (PEST-STEEP analysis) and quite literally framed the macro and micro issues pertaining to one single question "should I leave this industry?"

    The analysis identified, framed and clearly spelt out what has occured, who's doing what, and their reasons.

    In the conclusion I wrote "It's time to exit this industry, I don't have the resources, funds, distribution or economies-of-scale required to even compete... the only ones do have the resources and wallet are the four major banking groups".

    Game Over.
  • MLM west aust | 07 Jun 2011, 02:15 PM Agree 0
    why have comments from overseas brokers . their market is soooo different . thats why they are in the sh.. . thats where it all stemmed from . We are so fortunate here in aussie .think outside the square and you will prosper . things can only improve now . we have seen the worst .
  • Chris | 07 Jun 2011, 03:07 PM Agree 0
    The tide will eventually turn. Banks are controlling the markets now because of course the larger business survives a GFC (with huge Gov't support and at the tax payers cost) and they will try and maintain their market share and dominance for as long as they possibly can at the same time, try and reduce the number of Brokers in their market. Why wouldn't they ? However as the banks get greedier, because of late they can and they have (what other business in a GFC can just lift their income across the customer base whenever they want and boast record profits), and the economy starts to strengthen in time, non-banks and private investors will return to play again to create the competition (hopefully a change in Gov't will see Swannys 'vote buying' policies stopped too) Banks will continue along old paths of providing 'products' that they class also as 'services'. Banks have always wrapped these together as 'service' and lets face it, it is not so much because of their 'products' but of their lack of 'service' and during/after sales 'service' that automatically promotes the Broker industry because Brokers do provide a much better service to customers - its in every survey. Its all cyclical - it will revert.
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