Quality brokers to capitalise on leaner industry

Article Category: Demographics

By www.mortgagebusiness.com.au, 11 November 2009

The impending National Consumer Credit Code will drive more business to quality brokers, one of CBA’s most senior executives has claimed.

Ross McEwan, CBA group executive of retail banking services, said the mortgage broking industry could see a similar level of rationalisation seen in the life insurance industry in the 1980s.

He also spoke of the opportunity that lies ahead for professional brokers, likening the coming 12 months to the shakeup experienced by the insurance industry 20 years ago.

“In the 1980’s life insurance was very popular. Anybody that could sell it did sell it. Then regulation quietly caught up with not only the life insurers but financial planners as well,” Mr McEwan said.

“A large portion of life insurers and financial planners were forced to leave the market and the whole industry became considerably more professional as a result. I think we will see the same happen in the mortgage broking industry.”

“Ultimately, professional brokers that do the right thing by their clients will be the great winners out of regulation.”