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Brokers are remaining positive amidst legislative change and intense competition, according to the inaugural Mortgage Broking Benchmarking Survey from Macquarie Practice Consulting.
More than two thirds of brokers surveyed are expecting revenue growth in the next 12 months. This positive view may be attributed to the strong focus during the past 12 months that brokers have placed on driving efficiencies.
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This has helped to ensure brokers are well placed to respond to a changing market and are in a strong and stable position, the report said.
Macquarie Practice Consulting senior consultant Fiona Mackenzie said it was encouraging to see such resilience and positivity in the industry.
“The mortgage industry as a whole has faced tough times in the past few years, and while there has been much speculation recently about competition and its impact on brokers, they seem to be taking it all in their stride and continuing to grow their businesses,” Ms Mackenzie said.
The survey revealed an average estimated revenue growth of 13 per cent across the industry in the past 12 months, with brokers crediting their profit growth largely to the strong management of their referral networks from existing clients (66 per cent) and partners (55 per cent).
Recognising the importance of referrals, almost half of all larger broking businesses – those with four or more employees – have formal referral arrangements in place. By contrast, 65 per cent of individual brokers have only informal referral arrangements.
Ms Mackenzie said that while all broking businesses are well aware that referrals are critical to growth, smaller broking businesses are perhaps not taking such a business-like approach.
