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While many brokers dismiss the online channel as an immediate threat there is growing indication that it is rapidly gaining appeal with borrowers.
Speaking to The Adviser yesterday UBank general manager Alex Twigg said that they had been overwhelmed by the number of borrowers wanting to apply for a mortgage online.
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“We have 200,000 borrowers and surprisingly, 100 per cent of them applied for a mortgage via the online channel,” he said.
“When we started UBank four years ago, we saw opportunity in the online space, but we thought people would still want to talk with someone.
“Surprisingly, this hasn’t been the case.”
But while it is clear that there is a growing willingness amongst Australians to arrange finance online, the internet is still viewed by many as a research tool.
RFi’s Alex Boorman stressed that brokers without an online presence risked losing relevance.
“There are opportunities online. But while I don’t think securing a mortgage via the internet will ever truly pose a threat to brokers, if they are not online, they are already behind.”
Mr Boorman believes that brokers should focus on how they can strengthen their online presence as a tool for generating leads and providing information in conjunction with traditional broking practices.
“The internet has not taken off [for buying mortgages] as many thought it would.
“People still want to talk to someone with expertise – that might be someone in a branch, or it might be a mortgage broker. Whatever the case, borrowers are after reassurance,” he said.
“At the end of the day, borrowers want someone they can talk to – after all, this is the biggest financial decision they will make.”
