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Brokers have been warned of a growing challenge from accounting groups who see mortgage broking as a logical diversification play.
Outsource Financial chief executive Tanya Sale forecast that more accounting groups would follow the lead of Chan & Naylor, which last week announced a joint venture with Origin Finance.
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Ms Sale said that accountants are able to build stronger databases than brokers because they see their clients more regularly.
“With the mortgage broking side, the really good brokers out there will touch base with their clients, but the accountants and planners see their clients virtually every quarter if they are self-employed clients and without doubt yearly for their PAYGs,” she said.
“Whereas the core business for mortgage brokers is lending. So they usually keep that loan for five to seven years, but with the accountant they see them all the time and there is always something happening.”
Outsource Financial works with accountants, planners, legal firms and conveyancers as well as mortgage brokers.
Ms Sale said brokers could also expect an increasing number of planners to show an interest in the mortgage industry.
“I think it is smart business acumen in doing that. Lending has always gone hand in hand with accounting and financial planning. It’s just a no-brainer,” she said.
[Related: Debate continues about mixing broking and planning]
