Despite the toll of recent industry events, one CEO feels that the ensuing reflection, regulatory change, and impending transition to open data have led this to the “best time to be in lending.”
“As brokers look beyond the royal commission, there’s recognition that there’s a need to diversify offerings, services, and advice offered,” said Stuart Stoyan, founder and CEO of MoneyPlace.
According to Stoyan, open banking will naturally cultivate diversification through not only streamlining processes, hastening approvals, and increasing conversions, but by creating the space for brokers – and the industry as a whole – to focus on value-added solutions rather than relying on rigid traditional options.
“Whether fintechs or other non-traditional banks, there are going to be new lenders who are offering products that are a viable alternative to ‘traditional’ products. Brokers would be well-served to be aware of this change and broaden the scope of lenders they focus on,” he added.
Stoyan sees a “massive opportunity for brokers to take the lead” in helping guide borrowers through the transition.
He explained, “The very reason that customers come to brokers in the first place is to help them navigate the myriad of options that are available to them. Open banking will undoubtedly create even more options.”
While Stoyan feels confident that open banking will transform the lending landscape and greatly benefit brokers who position themselves wisely, he believes the change will come incrementally, over the span of five to 10 years.
He explained, “While it may not happen overnight, now is our chance to address the lack of trust, the lack of confidence that the public has with the financial services industry today, and to become more humanised, more personalised.
“This is a once in a generation opportunity to redefine financial services,” he concluded.