In light of recent developments such as the election result and APRA’s reconsideration of serviceability assessments, the industry has found itself in “a sea of opportunity that is unparalleled in broking for some time,” according to one aggregation head.
“We’ve gone from a stage where we were facing Armageddon in February, to a stage now where we’ve got confidence in the next three years,” said Sam White, executive chairman of Loan Market Group.
“In this three-year time, let’s make sure that we build in reporting the value that we know that we deliver every day to customers. One thing we’ve learned from this near-death experience is we need to communicate better to policymakers, to regulators, not just the customers.”
According to White, this is exactly what led to the surprise Coalition victory.
“When you do the right thing by customers, when you focus on telling their story, when you stand up for what you believe in, those things get rewarded,” he explained.
Unlike some in the industry, White finds the remuneration review scheduled three years out to be a natural, even welcome, measure given that mortgage brokers are such a significant part of the financial services industry.
He elaborated, “It was just shown in the royal commission that the financial services industry needs to be improved. Because we’re a big part of that, we should expect scrutiny.”
However, White foresees “a natural migration of market share” as the industry is able to pivot from the defensive positioning its been forced to take for the last several months.
He added, “I can’t see anything less than 70% to 75%. The only question will be how quickly we get there.
“It’s not the election that’s the story. It’s what we do with it now that’s the story,” White concluded.