Login
ISCOVER
Staff Reporter
Broker market share could grow well beyond 43 per cent, provided Australia's lenders leave the third party distribution channel alone, one industry stakeholder has claimed.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Speaking to The Adviser, ME Bank's executive manager brand products and distribution Ian Hendey said lenders had, in the past, tried to control and slow broker market share.
"We saw lenders alter their commissions and servicing proposition in a bid to control broker market share," he said.
"If they didn't do this and left market forces to control broker market share, I would expect to see the third party distribution channel's share to grow considerably."
And Mr Hendey's opinion is supported by recent research into broke market share growth.
According to the latest JP Morgan Australian Mortgage Industry Report, broker market share has increased modestly over the last quarter, growing from 41 per cent in Q2 to 43 per cent in Q3.
And, as per the report, this growth is unlikely to stop anytime soon.
Last month, Liberty Network Services managing director Brendan O'Donnell said the broker market should have no troubles growing its market share to 50 per cent.
"Data shows consumers want to deal with brokers and I believe this will help the sector grow their market share considerably in the future."
