As broker market share continues to grow, so does the role of the broker in Australia’s lending landscape. With the industry evolving rapidly, the question is no longer simply how much of the market brokers will capture, but how their role will continue to change alongside it.
Few are better placed to consider that evolution than Leo Gagic, chief executive officer of the Finance Broker Association of Australia (FBAA). With decades of experience across Australia’s finance and loan markets, Gagic brings a long-term perspective to the opportunities, challenges and changes shaping the broking profession.
Gagic has been at the helm of the industry body for nearly six months. But he came to the job with roughly four decades of experience in Australia's finance and loan sectors.
In this two-part series, Australian Broker caught up with Gagic again for the latest Spotlight Series — where we shine a light on the individuals shaping Australia's mortgage and finance industries — to discuss some of the biggest opportunities currently emerging for brokers, the concerns he is hearing from the industry and how he sees the role of the broker evolving into the future. He also considers what the broker of tomorrow could look like as the industry continues to mature and adapt to a changing landscape.
"The broker of the future will be less transactional while offering more guidance," Gagic told Australian Broker. "That's an exciting evolution because it further reinforces the critical role brokers play in helping Australians make informed financial decisions."
The following interview has been edited for grammar and clarity.
LG: The biggest opportunity is to deepen client relationships and become someone who offers broader financial solutions guidance. Many consumers are seeking guidance not just on home loans, but on asset finance, commercial lending, business funding and broader financial goals. Brokers are uniquely positioned to provide that support because they understand their clients' circumstances and objectives.
At the same time, changing customer expectations create opportunities for brokers who deliver exceptional experiences. Service, responsiveness and personalised guidance continue to be key differentiators.
LG: The conversations I'm having with brokers are remarkably consistent. Economic uncertainty continues to be a concern, along with increasing compliance obligations, operational efficiency and maintaining profitability in a competitive environment. Many brokers are also thinking about business sustainability and how to leverage technology effectively to drive competitive advantage and growth.
That's why at the FBAA we are constantly assessing changing broker needs and adjusting our education and events to stay in tune with what our members really need based on their business size, areas of speciality and stage of their business journey.
LG: I don't believe the industry is getting anything fundamentally wrong. But there is always room for improvement. One area we need to focus on is continuing to elevate professionalism and demonstrate the value brokers provide beyond securing a loan. Consumer expectations are changing and brokers must continue evolving their service offerings.
We also need to embrace innovation more quickly. Technology, automation and AI will reshape many aspects of broking, and businesses that adapt early will have a significant advantage.
Finally, the industry needs to remain united on advocacy and standards. Continued success will depend on maintaining public trust and ensuring the profession continues to evolve in the best interests of consumers.
LG: The broker of the future will be highly skilled, technology-enabled and deeply client-focused. As consumers gain access to more information and digital tools, the value of a broker will increasingly come from interpretation, strategy and guidance rather than simply information gathering. The future broker will combine technology with human expertise to deliver faster, more personalised and more holistic solutions.
Administrative processes will become increasingly automated, allowing brokers to focus on relationship building and strategic guidance. The most successful brokers will use technology to enhance the client experience while maintaining the personal trust that sits at the heart of the profession. The broker of the future will be less transactional while offering more guidance. That's an exciting evolution because it further reinforces the critical role brokers play in helping Australians make informed financial decisions.
