Weekend wrap: Broker future looking bright

by AB02 Apr 2016
Making news this week a major mortgage group has said a recent report proves brokers are the future, an aggregator announced an important fintech partnership and a tech platform originally designed for the real estate industry is shaking up the mortgage industry.

Yellow Brick Road’s CEO of lending, Tim Brown has backed a recent report that shows ANZ is reducing its branch presence while bolstering its broker channel, saying it is another signal that brokers are the future of the mortgage industry.

The J.P. Morgan Australian Mortgage Industry Report released last week revealed that ANZ has been steadily reducing its branch presence since 2011, in favour of increasing its broker usage – a trend which J.P. Morgan banking analyst Scott Manning said will continue across the banking landscape over the next five years.

“Brokers also have a small business mentality that banks just can’t compete with. They are integrated into their communities in a way banks can only pretend to be. They work harder because that way they build a reputation and make more money. Running the bank’s capped income model is never going to be as popular with consumers long term as the alternative of a broker who is incentivised to give better service, work longer hours, bring more customers in and provide customer-centric service,” Brown said.

National aggregator, Liberty Network Services (LNS), bolstered its broker offering this week by partnering with online fintech lender Moula to better service small business clients.

Through the partnership with Moula LNS brokers will be able to refer any small business customer directly to the fintech lender through an online portal.

LNS managing director, Brendan O’Donnell, told Australian Broker the partnership was formed to meet the growing needs of small businesses that struggle to secure short term finance with the major banks – while also helping brokers to diversify their business.

Finally, a tech platform initially designed for the real estate industry is now helping mortgage brokers with lead generation after a successful pilot with Loan Market.

The Australian-developed marketing automation platform, ActivePipe, is a relationship automation and predictive data platform, which works by using behavioural and interactive-based algorithms to identify which of an agent’s clients are ready to buy and sell.

However, the software is now targeting mortgage brokers as a lead generator. ActivePipe’s new mortgage lead generation module provides mortgage brokers with direct mortgage consultation requests.

Within a three-month period, ActivePipe generated over 3,500 mortgage leads and delivered over 550 mortgage consultant bookings for LoanMarket.