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The impending National Consumer Credit Code will drive more business to quality brokers, one of CBA’s most senior executives has claimed.
Ross McEwan, CBA group executive of retail banking services, said the mortgage broking industry could see a similar level of rationalisation seen in the life insurance industry in the 1980s.
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Mr McEwan delivered his comments at a luncheon and awards presentation for Australia’s Elite Business Writers – a new Mortgage Business broker ranking.
He also spoke of the opportunity that lies ahead for professional brokers, likening the coming 12 months to the shakeup experienced by the insurance industry 20 years ago.
“In the 1980’s life insurance was very popular. Anybody that could sell it did sell it. Then regulation quietly caught up with not only the life insurers but financial planners as well,” Mr McEwan said.
“A large portion of life insurers and financial planners were forced to leave the market and the whole industry became considerably more professional as a result. I think we will see the same happen in the mortgage broking industry.”
“Ultimately, professional brokers that do the right thing by their clients will be the great winners out of regulation.”
Mr McEwan also paid tribute to the top five brokers – who attended the CBA-hosted luncheon – recognised by Mortgage Business in its Elite Business Writers ranking.
“Our top five brokers here with us today confirm that professionalism is alive and well in this industry. It is not easy out there at the moment, there are complexities in the market and it has been quite a torrid time for brokers. But, good people grow and evolve in tough times and that is why you are all here today.
"You have managed to grow your loan books despite the various setbacks, and for that I congratulate you.”
