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Brokers unfazed by rise in online players

by Reporter5 minute read

Mortgage brokers are not threatened by increased competition from online broking platforms, according to MyState Bank.

A MyState Bank survey of its national broker network has revealed that 47 per cent of broker respondents would remain focused on their existing business models, despite a rise in the number of online broking platforms in the mortgage market.

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An additional 13 per cent of respondents noted that increased competition from online platforms was not a significant threat.

However, the survey also revealed that 22 per cent of brokers expressed plans to adopt new technology and software in order to remain competitive, with a further 5 per cent noting that they plan to partner with a fintech business to enhance their services.

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Brokers were divided when asked about the impact that mobile payment solutions such as Apple, Android and Samsung Pay would have on their clients’ choice of mortgage provider.

Of the respondents, 48 per cent noted that mobile payment solutions were “important” (34 per cent “somewhat important”, 10 per cent “important”, 4 per cent “critically important”).

Conversely, 40 per cent noted that clients “focused on the best deal they can get in terms of price and features”, and 15 per cent said that mobile payment solutions were “rarely mentioned” by customers.

MyState Group executive of broker distribution Huw Bough noted that the survey results are a reflection of the broking industry’s customer-oriented focus, but he also claimed that they highlight the increased role that technology is playing in the provision of broker services.

“Many brokers have stated that their customers still prefer face-to-face service when it comes to the largest transaction of their lives,” the executive said.

“However, a large number of brokers indicated that they are keen to explore the opportunities that new technology presents in relation to improving customer service. It looks like the debate will continue for some time yet.”

[Related: Two-thirds of brokers ‘concerned’ about changes from RC]

Brokers unfazed by rise in online players
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