Bankers’ hours no longer suit
Traditional nine to five hours no longer suffice in the financial services sector, Yellow Brick Road chief executive of lending, Tim Brown believes.
Responding to the JP Morgan Australian Mortgage Industry report, which showed ANZ was reducing its branch presence, as the Big Four Banks opt to use mortgage brokers to engage clients.
Brown said brokers were well placed to capture a significant proportion of the market, following international trends.
"If we look to trends overseas, a move towards utilising brokers for a larger percentage of lending has already been happening for some time. In the UK, 76 per cent of loans are done through a broker and 87 per cent of the actual loans are through mutuals, building societies or regional banks," he said.
"That same trend is now beginning here as banks realise old ways of operating aren't working.
"In this day and age, people want to have access to service providers outside the typical nine to five business day.
"Brokers also have a small business mentality that banks just can't compete with.
"They are integrated into their communities in a way banks can only pretend to be. They work harder because that way they build a reputation and make more money.
"Running the bank's capped income model is never going to be as popular with consumers long term as the alternative of a broker who is incentivised to give better service, work longer hours, bring more customers in and provide customer-centric service.
"Hearing that one of the big four is forgoing its branch presence in favour of a greater emphasis on the third-party broker channel reinforces the increasing consumer popularity and effectiveness of brokers."
AUTHOR
Nicholas O'Donoghue
Recommended for you
The corporate regulator has cancelled the AFSL of a Perth advice firm with the firm having previously seen its licence temporarily suspended in 2020.
Having proposed changes earlier this year, ASIC has clarified how it will support licensees with additional relief under the reportable situations regime.
AMP has partnered with BlackRock and research house Lonsec to provide a model portfolio capability on its North platform that offers “portfolio customisation at scale” to advice practices of all sizes.
Money Management rounds up actions ASIC took against advice individuals in the first half for FY25 from exam falsifications to dishonest conduct.
