Broker market share will continue to grow, say lenders

by Julia Corderoy26 Mar 2015
The proportion of mortgage settlements represented by brokers will grow to between 51 – 60% over the next three years, according to a roundtable consisting of eight lenders and aggregators.

Currently, the broker market share hovers around 50%, but six out of the eight participants in the Deloitte Australian Mortgage Report 2015 roundtable said they expect the broker channel will continue to gain market share ahead.

Bill Armour, a senior manager of ANZ’s home loan portfolio said the customer experience of seeing a broker cannot be replicated. 

“I think it all comes down to the proposition that brokers can offer customers in an industry that is still very much based on a trusted relationship; working with someone who can make the process easy for you, because it’s not.”

As lenders increasingly invest in their digital capabilities, it may pose a challenge for the broker proposition, says ME Bank’s group executive of sales Angela Middleton. However, she doesn’t believe there will ever be a time where the broker value proposition will be redundant.  

“As direct online applications start to emerge you will see some customers use that channel, which is good for choice. But there will always be an important role for brokers to have a face to face with customers, particularly customers who wish to better understand the product and get more information about what is available and what’s best for them,” she said.

Malcolm Watkins, a founding director of AFG, says the way that that brokers respond to the digital age will determine the future of the industry.

“I think the pressure is on the brokers to respond to the way the consumer is moving. We need to continue to provide constant ongoing service to our customer base. I don’t think that’s going to fall off. I think most of the big broking groups around the country are investing in ongoing customer communication pushing through that value proposition of choice and convenience and independence,” he said.