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ISCOVER
Staff Reporter
The online space poses a huge threat to the third party distribution channel, one mortgage broker has claimed.
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According to Darren Moffatt of housenet.com.au, the market share of bank online proprietary channels could rise as high as 25 per cent within the next few years.
“There’s a perfect storm approaching for brokers, and not many people are ready,” Mr Moffatt said.
“The internet has already disrupted lots of industries, and it’s now coming to the mortgage industry. You only have to look at newspapers and music to see what happens to those who are unprepared.
“To predict the future, smart business people watch capital flows, and right now the banks are investing huge dollars in direct, online channels. Just look at the success of UBank – there wouldn’t be a broker in the country who hasn’t lost a deal to them at some point.”
Mr Moffat added that this is just a taste of what is to come.
“As the technology improves, the National Broadband Network comes on stream and Gen Y gets older, more borrowers will go directly online to chase the best rates – it’s already happening,” he said.
“Couple that with the introduction of positive credit reporting – where lenders will see the fine detail of borrower transaction histories on each account – and the perceived value of brokers to both lenders and borrowers could be under serious pressure.”
Mr Mofftatt said the only way brokers can combat this growing threat is by expanding their own online presence.
“Most brokers have a basic website, and that’s about it,” he said. “I’m sorry, but that’s just not going to cut it. You need to be active on social media and have multiple points of contact for consumers and a clear point of difference."
Mr Moffatt practises what he preaches – he is launching a new social media website, housenet.com.au.
“Housenet.com.au is an integrated solution for this,” he said. “Try and imagine a Facebook adapted just for the local property market and you’re getting close.
“Brokers can establish a profile, write blogs, manage all their social media from our platform, join online forum discussions and more. It’s all about deepening existing relationships, and building new ones.”
