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Jessica Darnbrough & Vivienne Kelly
Broker market share could eclipse 70 per cent this decade, one aggregation head has claimed.
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Speaking to The Adviser, LoanKit’s chief executive Simon Dehne said he was “confident” broker market share would continue to climb in the future.
“I wouldn’t want to put a limit on it, but it wouldn’t surprise me if we got to 70 per cent one day,” he said.
“I have always struggled to understand why a customer goes to a bank to get a home loan, when they can go to one broker and have 30 odd lenders presented to them by a professional person who makes their living from making sure the customer’s happy.
“Why wouldn’t you go to a broker?”
Mr Dehne’s comments were echoed by NAB Broker’s general manager distribution John Flavell who said he wouldn’t be surprised to see brokers claw even greater market share over the coming years.
“While there is no doubt times have been tough for brokers of late, there are always opportunities in the market. In fact, there is 50 per cent of the market they don’t currently look after, so I wouldn’t be surprised to see the third party channel start to claw market share away from the other channels,” he said.
“Brokers who can build long term, stable relationships with their clients will do well down the track and continue to grow their book and their market share. After all, this business is all about relationships.”
This isn’t the first time Mr Flavell has predicted broker market share to grow.
Mr Flavell, a strong supporter of the third party distribution channel, has been heard on a number of occasions saying broker share could eclipse 50 per cent in the not too distant future.
