The Industry Is Changing: How You Can Make It Work For You
As a professional mortgage broker, being aware of changes and challenges to the lending market is crucial. It’s important to understand the market and doing so will allow you to adapt, and not get left behind. Knowledge is power as they say, so here’s a wrap up of where we’re at right now.
Suffice to say, the environment for brokers has changed substantially over the past decade. Post-GFC, the market has had a shake-up, with non-bank lenders, non-majors and fintechs increasing in power.
Online mortgage platforms through fintech companies have appeared. They aim to allow people to broker their own home loans online, without the need for professional brokers. A prominent bank invested in a fintech firm last year, pouring $16.5 million into a platform. The appearance of these platforms in the market doesn’t necessarily spell bad news for brokers though. With these platforms still in early phases, they may end up drawing on brokers in the future to give customers the personalised, human experience most opt for.
Online lenders, such as HashChing, have materialised as well. They also offer a digitised mortgage process where they display discounted rates for clients. They do however call on the expertise of brokers for the second phase of their process. This opens up opportunities for brokers to provide knowledge and extend their reach through this new channel.
Major banks who had previously left the market, such as Macquarie, are now re-entering and looking to align with distribution partners. With this re-emergence, banks are focusing on building strong, quality relationships with brokers in order to make the most of your skills.
As well as learning about the key players, a key to resilience in a developing market is to diversify. As a broker, make sure you offer more than one product to customers. Instead of only assisting your client with their mortgage for example, also focus on their other needs such as home insurance and credit or debit cards. Zone in on the client’s complete financial needs for a more holistic approach.
To help you make the most of the opportunities brought about by changes in the lending market, we have a wide range of systems and tools available to you. Our back-office system, marketing portal and public relations services enable you stay on top of your game. By offering a professional experience and utilising new leads, you’ll make the most of industry change.