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This month we ask: should brokers be worried about the threat of online rivals?
No concern
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No, a greater majority of brokers shouldn’t be concerned. There will always be a percentage of people who want to ‘go it alone’ and these online products fill that space nicely. Our clients seek out quality advice and long-term relationships, and they value our services. So, if a broker’s customer value proposition is solely based on rate, maybe they should be worried, but if it’s about service, advice and relationships, they have no need for concern.
Joel De Shannon, AIIS Finance
Small threat
I believe online rivals may have some effect on brokers, but they have their limitations. They may appeal to borrowers with simple loan applications but are restricted due to a no advice policy. I have young investor clients who are very rate conscious but have never discussed online competitors because they value the advice and support provided in the application and post-settlement stages. I don’t see it as a huge threat.
Alex Filipovic, Axel Finance
Be aware
Most brokers needn’t worry about online rivals, but they need to be aware of them. In our industry there is a real need to adapt and change your business model to fit the financial climate. It’s not hard for brokers to create a real point of difference from online rivals since good brokers will generally operate under an ongoing advice and relationship model. Creating a ‘client for life’ model is how good brokers differentiate themselves.
Jon Colley, Loan Wize
Unrealistic rival
No, they should not. There is a place for online mortgage providers, and no doubt their share of the market will grow over the next few years. However, I do not believe they represent a realistic rival to brokers. For most Australians, their home loan is their largest debt and always will be. I believe this is a major factor that drives them to seek the face-to-face advice of a mortgage broker, and this preference will continue.
Robert Krol, Eagle Finance
We’re the experts
Absolutely not. In my opinion, we are experts at what we do and my clients are referred to me to help guide them and provide the best possible solutions to meet their finance needs. Buying a house is single-handedly one of the biggest investments any consumer will ever make, and there is no room for error. Online rivals may advertise discounted and cheap rates, but they don’t offer the personalised service we do, or the insights and benefits of our experience.
Hayley Grant, HMG Home Loans
