The FBAA is urging the banks to do more to promote the third party channel after a new report revealed that the industry is facing a major consumer awareness problem.
A report released
Broker last week suggests there remains a large part of the market still unaware about the role brokers play in providing finance, despite figures showing more than 50% of new loans now pass through the broking channel.
At the release of the report, NAB
Broker general manager Steve Kane
said that whilst the onus of promoting consumer awareness falls on everyone – lenders, associations, aggregators and brokers – the report revealed that the MFAA and FBAA should be taking a "lead role" in promoting consumer awareness.
Now, FBAA chief executive, Peter White
, is urging the banks to start actively promoting the entire broking sector.
“In the end, it’s the banks who ultimately profit from finance broker introduced loans and the more loans transacted, the better the bottom line is for them,” White said.
“It is also a bit rich that the banks make a lot of money off the third party broking channel without having to do a shred of promotion in the marketplace.”
White also dismissed the comments the from NAB
Broker suggesting the industry peak bodies need to take a lead role in promoting consumer awareness.
“As CEO, I am on national television, radio talkback and in the mainstream print news on a regular basis extolling the wide-ranging benefits of using a broker. The FBAA has also undertaken several comprehensive public campaigns to educate and highlight our strengths and mission statements.
“Our educational initiatives being launched next year to borrowers, and learning initiatives for brokers, form a major part of the education process so brokers know the best way to maintain communication with customers. The FBAA does not rest on its laurels and is fully aware of the importance of broker engagement.”