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Jessica Darnbrough
While the majority of mortgage brokers believe further industry consolidation is not good for the industry, it is inevitable, according to one of Australia’s brokerage heads.
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Speaking to The Adviser, Oxygen’s general manager Alan Hemmings said the various lenders, brokerages and aggregation groups will continue to consolidate.
“Given the level of consolidation we have seen over the last few years I believe it is only inevitable,” he said.
“We have seen smaller or boutique aggregators disappear as they try and compete with the big boys. I am not seeing anything that will change this trend.
“The demands to keep up from a technological perspective, continue to provide training and support will mean margins for smaller groups will continue to reduce, putting more pressure on them to survive.”
Indeed the industry has seen a fair bit of consolidation in recent months.
At the end of last year, the Commonwealth bank of Australia announced its plans to purchase Aussie Home Loans.
The announcement came just months after Aussie purchased boutique aggregator National Mortgage Brokers.
And while all of these sales have been approved by the ACCC, it seems brokers are not happy with the consolidation.
According to a recent poll conducted by The Adviser, the majority of mortgage brokers said further consolidation was not good for the industry.
Most specifically, 63.1 per cent of the 415 respondents said CBA’s acquisition of Aussie was “not positive” for mortgage broking.
