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Jessica Darnbrough
More than 60 per cent of Australia's lenders have admitted they will invest more heavily in the online channel in 2012.
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According to Genworth's latest Home Grown Mortgage Industry Perspectives report, 65 per cent of lenders will invest more in the online space next year as the percentage of borrowers that want to take out a mortgage online gradually increases.
While only 3 per cent of borrowers have actually admitted to applying for a mortgage online, 16 per cent of first home buyers said they would do so in the future.
Despite this assurance that online will play an important role moving forward, brokers have been told not to fear the emergence of online.
When asked about their ideal online experience, almost 50 per cent of borrowers said it would combine online with an in-person meeting.
Speaking at the Home Grown briefing in Sydney yesterday, CBA's executive general manager third party and mobile banking Kathy Cummings said a broker's role was firmly entrenched in the mortgage market and there would always be a need for face-to-face meetings.
"There is no doubt the online channel is gathering momentum. But, as far as a mortgage goes, there is still a large degree of complexity associated with purchasing a home. It is not a straight forward transaction. Getting a mortgage is the biggest financial investment a person will ever make, so they will always need human affirmation that the product they are getting is right for them," Ms Cummings said.
Aussie's Stuart Tucker agreed and said while 80 per cent of the brokerage's leads were coming through its online channel, online would never replace human contact.
"While Australians will use digital for research and their shopping lists, it will never fully replace the role of a broker," he said.
