Powered by MOMENTUM MEDIA
the adviser logo
Broker

Deloitte report identifies major opportunities in broker model

by James Mitchell4 minute read

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.

Advertisement
Advertisement

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.”

[Related: Popular broker event unveils brand new agenda]

growth  x

James Mitchell

James Mitchell

AUTHOR

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

Stephen Hale ta

MFAA launches near-prime, specialist loan resource

Coined Finance for when your customer doesn’t fit the mould: A broker’s guide to near-prime and...

READ MORE
Daniel Newell Gedda

Specialist lender LoanU rebrands to Gedda

The personal and auto loan provider LoanU, which specialises in helping Australians with impaired credit histories...

READ MORE
tech tools

CBA introduces AI technology to combat scams

New figures released by the competition watchdog this week have revealed that Australians lost more than $2 billion...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more