By: Staff Reporter
The number of mortgage broking firms writing business has fallen significantly over the last year, suggesting further industry consolidation is imminent.
According to a new report by the Market Intelligence Strategy Centre (MISC), there was significant erosion in the number of operational broker firms – slumping to just 190.
Moreover, the report found that the larger aggregator groups are starting to take market share away from the smaller firms.
“The top 10 brokers accounted for 83 per cent of all broker loans written, compared to 77.9 per cent recorded this time last year,” the report read.
“The top 5 broker groups further entrenched their position as well, accounting for 59 per cent of all loans up from 56 per cent.”
A spokesperson from MISC said the results are a pre-cursor for further change.
“I think it is inevitable that the industry will endure greater consolidation over the coming year, especially as the big groups continue to grow in size,” the spokesperson told The Adviser.
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