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Online banks can actually improve brokers’ value proposition, as an excess of information increases the value of good advice, say industry experts.
Kathy Cummings, executive general manager, third party and mobile banking for CBA told The Adviser that while online banks may be attractive to financially and technologically-savvy individuals, a majority of those looking for a mortgage will want assistance and clear guidance.
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“Brokers are increasingly being sought out by consumers as an "advice" channel, and they need to leverage this to their advantage,” she said.
NAB’s executive general manager, growth partnerships, Anthony Waldron, said online banks and other online resources will simply be the first stop for many before seeking clarification from an expert.
“The advice that they [brokers] can give becomes even more valuable when there is more information," he said.
“That means customers are going to ask more difficult questions, it means some will be more informed, it means some of them will want to do it themselves, but for a vast majority, they’re actually going to need more advice.”
Matt Wood, head of north region distribution at Citi, said different demographic segments seek different levels of service.
“Face-to-face, online and phone selling and servicing will have their place for different segments.
“Some customers like to do it themselves; others like to have the advice of a professional in the field, like a broker,” he said.
