Global professional services giant Deloitte has outlined two key areas that provide the greatest opportunity for the third-party channel to evolve over the coming years.
The Deloitte Australian Mortgage Report 2016, released last week, asked industry leaders where the biggest opportunity for the evolution of the broker model would come from.
An overwhelming majority of respondents – made up of third-party leaders in the banking space, as well as the heads of broker groups such as AFG – identified two key areas of opportunity.
The most popular theory was that the broker channel would evolve by broadening the third-party value chain through increased white label lending, securitisation programs and widening product offerings.
The second highest potential opportunity flagged by survey respondents was for brokers to integrate digital into their processes with customers.
The report was based on a roundtable discussion with major banks, non-bank lenders, broker groups and online lenders.
AFG executive director Malcolm Watkins commented that in order to cross-sell into areas such as life insurance, brokers needed to be “more automated and immediate”.
“Electronically they need to quote the cost to insure at the time of application, using a certain value with a number of built-in basic assumptions, like the value of a mortgage,” Mr Watkins said.
“The quote and offer would be generated automatically and offered at the point of sale to the customer,” he said, adding that the customer could accept the quote and proceed or defer it until the loan was approved.
“That gives them the time to think about the levels of insurance they are most comfortable with.
"To make that work, the system needs to be automated and supported by a customer service available to answer questions and make it more personal.”
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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