Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Banks forced to rely on broker channel

gerald foley  x gerald foley  x
Emma Ryan & Adam Zuchetti 4 minute read

With broker market share tipped to reach 60 per cent this year, the head of one aggregation group says banks have no choice but to adopt third-party distribution strategies.

Gerald Foley, managing director of nMB, told The Adviser that the broker proposition has become so “solid” that the banks now have “little option” than to work with the third-party channel.

“At the end of the day it’s just such a solid consumer proposition that a bank has no choice but to play in it now,” Mr Foley added.

“If you’re a bank and said ‘we’re not going to deal with the broker market’ you’d be taking yourselves out of one of two home buyers who would go to a broker.

Advertisement
Advertisement

“It’s not a choice they can decide to be in it or not be in it – they’ve got to be in it.”

However, despite the significance of third-party distribution, Mr Foley said there still needs to be more recognition of the broker channel within the banks.

“I’ve got no doubt that some lenders wish that brokers didn’t exist, because ideally if I was a bank I would much rather all the customers came directly to me but, as I keep saying, brokers don’t exist for the benefit of brokers,” he said.

“Brokers exist for the benefit of consumers. Banks exist for the benefit of brokers as well but the consumers much prefer to go through a broker to get there.

“The banks are best at gathering deposits, developing loans, creating products and features because that’s what they’re good at. Brokers are far better at sales because they have a broader proposition and consumers understand that.”

PROMOTED CONTENT


Mr Foley’s comments come after Loan Market chairman Sam White told The Adviser that this year’s shifting regulatory environment will see broker market share get 60 per cent of all new business.

[Related: Heritage heavily dependent on brokers]

Banks forced to rely on broker channel
gerald foley  x
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Work smarter, not harder, in 2022 and beyond, visit the website here to secure your ticket.

gerald foley  x

 

more from the adviser
YBR home loans 850x380 ta

Breaking News

YBR Home Loans flags digital pivot, broker expansion

The major brokerage has launched a digital mortgage broking busin...

stressed woman ta

Breaking News

‘Perfect storm’ of trouble ahead for SMEs

An SME lending company has warned that many retail and supplier b...

uptick

Breaking News

Wisr hits high for new loans

The ASX-listed personal lender wrote $132 million in new loans du...