Several brokerages joined the Loan Market franchise in January, an influx the group has attributed to new legislation.
Loan Market has revealed that it welcomed six new businesses under its franchise brand in January, with a further 20 business owners currently in the process of onboarding with the group.
The major broking franchise has attributed the influx of demand to industry changes and upcoming compliance measures that may have business owners worried, including the best interests duty obligations, which is set to come into effect on 1 July 2020.
Loan Market’s executive director of growth, Andrea McNaughton, said January was “typically a quieter period” for businesses to switch aggregators, but looming industry changes and increased time spent processing files had encouraged operators to act.
“July 1 requires new adherence to new compliance measures. Many business owners are wanting more support to help make this transition as easy as possible for their back-end teams,” said Ms McNaughton.
She highlighted that major players in the brokerage sector, such as Loan Market, have invested in technologies that assist brokers in meeting their compliance obligations.
“Tech is going to play a significant role in adapting to these obligations, and Loan Market has made great investment in this space to prepare brokers for this change,” Ms McNaughton said.
“In fact, tech is going to assist in positioning brokers as the trusted advisers in the marketplace and make it easier for clients to deal with finance brokers.
“Our tech is the common thread through our commitment to save our brokers time, keep them safe, help them find and keep clients and continue to grow their businesses.”
Ms McNaughton said the industry had always acted in the best interests of customers, but new and unclear obligations under the new legislation has left business owners concerned.
“Business owners want to be able to go about their business with confidence,” she said.
“They’re seeking out support to limit the disruption to their activities and actually improve their client service offering in the marketplace.
“Best interests duty legislation represents an opportunity for brokers to grow their business with the right support.”
While some of the six new businesses will be taking on the franchise name, others have decided to embrace the Bring Your Own Brand model.
The new businesses to join Loan Market in January are:
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Hannah Dowling is a journalist for The Adviser and Mortgage Business.
Prior to joining Momentum Media, Hannah worked as a content producer for a podcast catering to property investors. She also spent six years working in the real estate sector at a local agency.