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Jessica Darnbrough
A reduction in lender competition will negatively impact the broker proposition, one industry stakeholder has claimed.
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Speaking to The Adviser, Liberty Network Services’ Brendan O’Donnell said if Australia’s smaller lenders do not constantly reinvent themselves and offer highly competitive products to brokers, they will not be used by the third party distribution channel.
Mr O’Donnell said if brokers stop using an array of lenders, then they run the risk of damaging the broker proposition.
“If brokers offer just three or four lenders, the question must be asked: are they really brokers?” Mr O’Donnell said.
“If brokers simply offer the majors’ products, can they truly call themselves brokers? What are they really doing? Are they going to give each and every client unbiased, trustworthy advice?
“There is onus on the lender, not just the broker, to ensure we have products that are competitive enough to be considered by the third party channel.”
Mr O’Donnell said all lenders need to remain competitive so that brokers have the ability to offer a diversity of lenders and products.
“If we don’t do that, we will be the reason the industry shrinks and we do not want that,” he said.
