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A recent survey has concluded that one-third of brokers lack the confidence to utilise technology in their practice.
New data released by aggregation group Connective has suggested that one-third of Australian brokers believe they lack the skill set to embrace technology, sparking fears that some may be left behind as the industry moves into the future.
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The findings, which were included in the research report “Achieving Success in Mortgage Broking”, notes that in a survey of 324 brokers conducted over May, 33 per cent believed they lack expertise in technology, while 10 per cent stated that they preferred the “old ways” of operating.
This disconnect was most apparent for brokers aged 55 years and older, with half of the 94 surveyed expressing that they were not equipped to embrace technology, while 32 per cent said they preferred the old ways.
For those aged 45 to 54 (accounting for 94 brokers) and those under 45 (accounting for 136 brokers), this perceived lack of technology expertise was acknowledged by 39 per cent and 26 per cent, respectively.
Brokers in these demographics who preferred traditional methods of operating accounted for 7 per cent and 5 per cent of these cohorts.
However, the report also notes that 87 per cent stated that they would pursue learning and developing technology over the next 12 months, with 65 per cent expressing that they preferred to be educated from their aggregator.
Technology perceived to be critical to success
According to the research, technology’s place in the broker industry is increasingly perceived as being linked with success.
The report highlighted that, of 324 brokers, 91 per cent either strongly or slightly agreed that adopting the latest digital technology was critical to their success.
Furthermore, when speaking to 105 broker businesses considered to be 'successful' (a status derived from volume growth, conversion and throughput), 95 per cent expressed that they agreed in some capacity that technology is necessary for success.
This perception was shared by a range of businesses with varying levels of experience, with 95 per cent of the successful early growth' brokerages (businesses considered to have initial profitable growth) interviewed stating that they use technology to identify the 'best' loans.
Moreover, 70 per cent of this cohort noted they are looking to use technology to generate leads for home loan clients.
For established brokerages (businesses that are considered to be mature with a stable client list), 64 per cent of the businesses in this segment expressed that they were interested in automating everyday tasks.
Successful mature brokerages (a cohort considered to be in a new phase of growth with new markets and revenue streams) were also found to be entirely willing to utilise technology, with 100 per cent of those interviewed stating they would automate everyday tasks.
This survey group was also 1.5 times more likely to agree that adopting technology earlier than others gives competitive edge than the 24 to 34 other mature expansion businesses also interviewed.
Find out more about the platforms, tools and products that are helping innovate the broker space in this month’s Broker’s Guide to Innovation and the In Focus - Innovation Series videos, released across November.
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