Login
ISCOVER
Jessica Darnbrough
The mortgage broking sector could be set for an overhaul, with one aggregation head predicting the industry will closely align itself with financial planning in the future.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Speaking to The Adviser, Connective principal Murray Lees said the mortgage broking sector would follow the path of financial planning – where big dealer groups would dominate the industry, swallowing some of the smaller players.
“Moving forward, I believe the mortgage broking industry will more closely align itself with the financial planning profession,” he said.
“Branding will become more important, as brokers want to be partnered with large, stable players. As such, we are spending time looking at what the next five years will hold and we are working towards that.”
Mr Lees is not the only aggregator head to believe branding will become more important moving forward.
Aussie executive director James Symond has long held the belief that Australia’s smaller aggregation groups will ultimately have to become state-based and localised if they are to survive, while the big will continue to grow in size and scale.
“The big will get bigger; it is as simple as that. There will always be more consolidation in the aggregation space.”
Last week, Aussie finalised its acquisition of the aggregation group national Mortgage Brokers – an acquisition that is likely to be the first of many according to Mr Symond.
“We haven’t gone into partnership with Gerald and his team to play it safe, we’re doing this to make our mark,” Mr Symond told The Adviser.
