Broker service overshadows banks

Speaking at the AB&F Mortgage Innovation conference today, ING DIRECT executive director distribution Lisa Claes said the rapid digitisation of distribution is driving the change.

Ms Claes said internet adoption and the diffusion of new technologies like smart phones, is facilitating instant banking for customers and in the same vein, instant feedback.

“There are many things in life we can’t control, climate change, the cash rate, unemployment or the European debt crisis but we can control how the customer interacts with us,” she said.

“Social media allows the current and future generations of customers to demand, recommend or condemn and they will use this power to drive a broker's business forward or drive it into the ground.”

Ms Claes also looked at the trends from ING DIRECT’s overseas markets where mortgage distribution through brokers is fairly immature in Europe (11 per cent) compared with Australia (at 43 per cent) and then at ING DIRECT - which sells nine out of ten mortgages through third parties.

While the “how” of mortgage delivery and application is changing, never before has service been a top priority,” Ms Claes said.

“Intuitive CRM and completely paperless mortgage application systems are beginning to emerge in the market and these prove how exciting the digital age will be for the industry – but they won’t compete with the broker offer rather they will complement it.”