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Jessica Darnbrough
More than one in three brokers fear that the online channel poses a threat to their market share, according to a new poll.
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The latest The Adviser poll revealed that 35.1 per cent of respondents said the online channel did pose a threat to the ongoing success of the third party distribution channel, while 7.2 per cent were unsure.
Of the 265 respondents, just 57.7 per cent said that the online channel will not erode broker market share.
The rise of online comparison sites has increased the visibility of alternatives to the mortgage broking channel and recently one new entrant singled out brokers.
In a bold advertising campaign in one of Sydney's busiest streets DealMax.com.au told consumers in December to "Say goodbye to brokers!"
But despite the increasing concerns amongst brokers Advantedge’s Brett Halliwell said that while the online channel will continue to grow in terms of market share and popularity, it would not threaten the broker market.
“What we have seen of late is a decline in the use of branch networks. This phenomenon does not occur solely within Australia, but indeed around the globe. While branch usage has declined, online has increased, so too has the broker channel,” he said.
“Moving forward, we expect to see online usage increase and broker usage increase. That doesn’t mean to say that online is a threat to the broker channel, it means that brokers can co-work alongside this channel and, in many cases, embrace it.”
