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Australian borrowers are turning to one channel for their refinancing options.
New research from Google provides some powerful insights for any mortgage broker still hesitant about building a digital marketing strategy.
For a start, it shows that nine in 10 Aussies go straight to digital channels when they’re ready to refinance. They begin their journey, as most of us do, with online research. Popular searches include mortgage calculators and budgeting tools.
Google’s research also found that Aussies are wasting no time once they’re ready to transact, with one week being the average length of time refinancers research before choosing a lender or broker.
Borrowers are also considering fewer options before making their decision, from 4.6 providers in 2016 to 2.3 providers in 2020.
“These figures paint a compelling picture of Australian refinancers and how they use online research to make financial decisions,” Joust CEO Carl Hammerschmidt said.
“Consumer behaviour is increasingly moving online. For mortgage brokers, building a sustainable digital business is now becoming imperative.”
The impact of COVID-19
The COVID-19 pandemic has had a major impact on consumer behaviour. We were all spending plenty of time online prior to the pandemic but enforced lockdowns and social distancing measures have now driven even more transactions online.
“If we look at where Australia is right now, and where Sydney is specifically, mortgage brokers are very restricted in what they can do from a business development perspective,” FBAA director and Joust ambassador, Clive Kirkpatrick said.
“The resurgence of COVID-19 has driven all marketing online because that’s where consumers are spending their time. For years brokers were able to market in their communities by sponsoring the local footy team or hold an information evening for their neighbours,” he said. “When our states and territories get locked down, those things are no longer possible.”
Mr Kirkpatrick believes the pandemic has created a turning point for many industries that have relied on face-to-face relationships and traditional marketing to drive sales.
“In 2021 we are all digital workers, whether we believe it or not,” he said. “Every business is a digital business. Brokers will need to consider the strength of their digital strategy carefully as we move into unchartered territory.”
Generational changes
The average age of a mortgage broker has come down considerably in recent years. The average broker’s age currently sits at 43, but just a few years ago it was in the mid-fifties.
As younger brokers join the industry, more and more digital natives are establishing themselves in a market dominated by digital consumers. This can often put pressure on older brokers to digitally upskill.
“Joust is the perfect digital marketing partner for brokers of all ages,” Joust CEO Carl Hammerschmidt said.
“Older brokers can remain competitive in an increasingly digital world by integrating a simple customer acquisition strategy via our platform. At the same time, younger brokers and new entrants are no longer limited by face-to-face interactions,” he said.
With Joust, brokers have the option to build a sustainable digital business by finding all of their customers online.
“Ninety per cent of refinancers are going online to research their options. That should be a clear enough indicator of where brokers need to be marketing themselves,” Mr Hammerschmidt said.
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