Mortgage brokers are predicting a positive future with growth in the broker market share, despite the challenges the industry is facing.
MyState Bank has surveyed its national broker network on the future and current climate of the broking space.
According to results from the survey, 90% of respondents said they expected the broker market share to grow. Thirty-nine percent said it would increase from the current figure of just over 55% to 60% or more.
Almost a quarter predicted the broker market share would increase to 65% or more and just fewer than 15% of respondents expected it to rise to 70% or more.
When asked how they expected their broking business to perform in the second half of 2018 more than 70% expected strong or moderate business growth, with no respondents expecting to make a loss.
Challenges the survey highlighted included the use of online portals.
More than 90% said changes to lending practices requiring brokers to collect, verify and record more client information than before had significantly or moderately increased the time and resources needed to do their jobs.
The survey also showed that while brokers expected the online broking channel to increase market share, three quarters believed online brokers would fail to capture any more than 15% of home loans. Only 11% believed they might get much as 20% market share.
While 27% of brokers said they were looking to adopt new technology and software to remain competitive, more than 40% believed their current business model was robust and would not need to be adjusted to succeed.
When asked what processes, capabilities and skills were needed to sustain a successful broking business into the future, 35% said faster application processing times, 26% said superior relationship management skills and 16% said more automated digital systems that used artificial intelligence.
MyState Bank group executive broker distribution, Huw Bough said the survey results highlighted the dynamic and changing nature of the Australian mortgage market and how broker businesses were nimble and quick to accommodate change.
Bough added, “The positive outlook brokers have for their segment of the industry is encouraging for smaller regional banks like MyState Bank who have a strong mortgage broker focus.”