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TV: Even elite brokers will have to change

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Australian Broker | 13 Mar 2012, 03:00 AM Agree 0
Outgoing Advantedge head Steve Weston has advised brokers that even the industry's elite will have to find new ways to make their businesses viable
  • Guru | 12 Mar 2012, 10:48 AM Agree 0
    Brokers writing two deals or less per month should not be in the industry and the cost to be in it should be prohibitive. On the other hand, if aggregators were not owned by banks, maybe they would be a bit more agressive in battling for the brokers. Not only has the revenue fallen by 30% but the workload has doubled with compliance on the one hand and lenders' ineptitude on the other
  • Broker | 12 Mar 2012, 12:09 PM Agree 0
    Any Broker with half a brain surely would have restructured their business model and overheads back in July 2008 when the commissions were slashed. No business can have their top line cut by 30%, not react to that and stay in business. Math 101, I would’ve thought.

    Yep, we are doing all the lenders work for them, for 30% less, and their service standards have probably slipped about 30% over the last 3.5 years, yet we still have the likes of CBA saying that brokers are making too many mistakes etc, and the broker channel is not profitable, if that’s the case perhaps they should exit the broker space altogether, or have a serious look at what’s happening and what’s being charged where internally.

    Please remind me why lenders thought or think that outsourcing to Brokers was more profitable in the first place, was it because it is, and still is?

  • Michael | 13 Mar 2012, 01:18 PM Agree 0
    I agree that brokers need to change, if for no other reason than banks et al continue to "shift the goalposts", making business as hard for their brokers as possible. Surely, if the banks were serious and genuine, the same standards would apply to their own institutions.

    Brokers, for the most part, represent value to their clients and offer them choice. The level of choice is declining along with the service provided by most banks (sorry, that's their brokers' fault too).

    No way will brokers ever win - banks are too big
  • Spinner | 13 Mar 2012, 11:15 PM Agree 0
    Aaaah - Michael - never say never. An elephant who looses a leg is in trouble. Its the coachroaches that survive an atom bomb, even if they lose a leg. Hold on and back yourself
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