Weekend Wrap: Aggregator launches consumer help website amidst ASIC review

by AB19 Mar 2016
Making broker news this week, an aggregator launches a consumer website, educating on brokers as the ASIC review into remuneration gets underway; industry heavy-weight warns against demanding a NCCP review and CBA boasts market share surge.

Consumers have been encouraged by ASX-listed aggregator AFG to back brokers during an ASIC review into industry remuneration. 

AGF has created the MyBrokerMyChoice website, highlighting the importance of the mortgage broking sector.

“The majority of consumers are going through brokers these days and we think the overwhelming majority are happy. We survey customers on behalf of our brokers and they are getting a really high satisfaction rate with consumers,” AFG managing director Brett McKeon told Australian Broker.

Brokers may want to think twice before demanding a review of the National Consumer Credit Protection act, the FBAA chief executive has said, warning the consequences may not be ideal for brokers.

“The thing that would always concern me if we got to bullish on this is caveat emptor – or buyer beware. The screws could get tighter. You don’t want to turn around and do a big call to action and then for things to get worse,” Peter White told Australian Broker.

“What we have to really look at is what the reason is for it, why does it need to be reviewed and what are the specific areas that need to be looked at.”

Commonwealth Bank has seen a further surge in mortgage settlements this year, according to the latest AFG Competition Index. 

The Index shows that major banks and their subsidiaries increased their market share by almost 5 per cent in January, hitting a whopping 71.8 per cent market share by the end of February.

“Commonwealth Bank subsidiary Bankwest was the other lender to record an increase in flow for the same quarter with a jump from 5 per cent to 7 per cent, giving the Commonwealth Bank group an overall market share of close to 31 per cent,” said AFG general manager of sales and operations, Mark Hewitt.