The former CEO of Mortgages at Barclays in the UK has told brokers they can expect their market share to rise “significantly” but they should also expect changing regulation to come with that.
Speaking at the Finance Brokers Association of Australia
’s (FBAA) 2016 national tour which kicked off in Brisbane this week, Steve Weston, who until recently was the CEO of Mortgages at Barclays UK, said there is “every reason” to believe broker market share will rise to the level it is un the UK.
“Brokers now account for over 70% of mortgage flow in the UK and given the similarities with the Australian market, there is every reason to believe that broker flows should increase significantly above the low 50% currently being experienced here,” he said.
However, with burgeoning market share, Weston, who was also the former general manager of broker platforms at NAB
, told brokers they should be prepared for changing regulatory scrutiny.
“That said, Australia's robust economic performance and strong property price growth may have created a false sense of security that the way that business is being done today will still be considered compliant by regulators in five or ten years from now.
“The UK financial services industry has learned through painful experience that the interpretation of regulations can change over time.”
The FBAA’s Peter White
said Weston’s experience provides brokers with a good opportunity to get a glimpse into Australia’s broking future.
“Steve is a legend in broking circles with so much knowledge at hand, and the FBAA is privileged to have him as part of our National Tour,” White said.