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Jessica Darnbrough & Vivienne Kelly
Yellow Brick Road's new funding partnership with Macquarie Bank has been heralded as a positive step for competition by several key industry stakeholders.
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Earlier this week, Yellow Brick Road announced it had entered into an agreement with Macquarie Bank giving the wealth management business a new funding line.
While Yellow Brick Road’s claims that the new product will undercut the big banks has raised more than a few eyebrows, the move from the wealth management business to inject competition has been welcomed.
Speaking to The Adviser at the Bernie Lewis advice conference in Noosa, Adelaide Bank's general manager third party lending Damian Percy said that new competitors in the market are good for brokers and consumers.
"I think the Yellow Brick Road link up with Macquarie Bank is a good sign - it shows that consumers are prepared to support non-banks and non-bank brands in terms of getting advice," Mr Percy told The Adviser at the Bernie Lewis advice conference in Noosa.
"Diversity is what our industry has thrived on. The fewer players we have and the less diversity there is, the less innovation we will have – and the poorer the outcome will be for consumers."
Supporting Mr Percy’s comments, MFAA chief executive Phil Naylor said any additional competition in the market was positive for brokers and their clients
"It is good to see innovation in the market and if more players come into the market because of that innovation, that has got to be better for consumers," Mr Naylor said.
"Mortgage broking has already evolved and it is almost impossible to predict what it will evolve into in the future.
“It is quite an entrepreneurial area, so there are bound to be different people who will come in with different models.
“I think the fact that there are people willing to have a go and innovate is good for the sector and good for consumers."
