As Choice celebrates its 20th anniversary, CEO Stephen Moore says the aggregator is preparing for the future
As Choice celebrates its 20th anniversary, CEO Stephen Moore says the aggregator is preparing for the future
The Australian broking industry has matured significantly over the past 20 years, weathering tough times such as the Global Financial Crisis, to emerge stronger and more professional than ever before.
In the coming years, we expect the pace of change to escalate, as the industry looks to take the next step in its evolution. While this will, of course, bring challenges, we believe the future is bright for those who are willing to embrace change and adapt.
As we reached our 20-year anniversary milestone this year, it felt timely to reflect on our industry’s growth to date, and turn our thoughts to what lies ahead for our dynamic industry.
While it is impossible to predict exactly what the industry will look like in another 20 years, we at Choice have identified some key themes that we believe will have a strong influence on the industry’s continued growth and progression in the years to come. Here are a few of them:
Growth through diversification and convergence
Mortgage broking has established a firm position in the residential lending market, with brokers now accounting for more than 50% of all loans written. Leveraging this strong position, our expectation is that growing numbers of brokers will expand their service offering into the areas of commercial and asset finance.
Up to 30% of broking customers are typically business owners, so there is a natural synergy between looking after customers’ personal lending needs and extending that service to help with their business needs as well.
We also expect to see more vertical and horizontal integration as sole proprietor broking businesses look to take their growth to the next level. This will mean more brokers incorporating complementary services into their businesses, including convergence with financial planning and accounting businesses, as well as consolidation of broker businesses looking to achieve additional growth through scale and shared resources.
Increasing professionalism
The spotlight is currently firmly on the broking industry and the ASIC and Sedgwick reviews are likely to lead to important reforms. While these reviews can create some uncertainty for brokers, we believe that in the long run, they will lead to better outcomes for customers, and in turn, greater trust in our industry.
We know that the broker industry is fundamentally sound, we also know that expectations of us continue to increase. Against this backdrop, we all need to continue to lift the bar when it comes to quality – in processes, documentation and customer experiences. This applies to aggregators, lenders and brokers. My view is that this will transpire into an industry more broadly recognised as a true profession which in turn will attract more customers and grow our market. Greater recognition that brokers provide the customer with better financial outcomes will be a real positive for our industry.
Rising importance of digital platforms
Technology has revolutionised the broking market over the past two decades, allowing for the easier transfer of information, outsourcing of key services and more efficient customer service.
Looking ahead, software platforms will become increasingly important when it comes to processing loans, as well as storing and leveraging data. Technology will also enable brokers to engage with customers much earlier in their home loan journey.
But technology will not replace the need for quality personal service. We expect to see the blending of different communications channels – face-to-face, phone and digital – to deliver the best possible customer experience.
These are exciting times for the broking market and we look forward to continuing to support brokers in this next phase of the industry’s evolution.
Stephen Moore has been the CEO of Choice Aggregation since 2010. This article is based on a newly-released Choice white paper ‘A world of choice: 20 years of mortgage broking’, launched to celebrate the group’s 20th anniversary.
The Australian broking industry has matured significantly over the past 20 years, weathering tough times such as the Global Financial Crisis, to emerge stronger and more professional than ever before.
In the coming years, we expect the pace of change to escalate, as the industry looks to take the next step in its evolution. While this will, of course, bring challenges, we believe the future is bright for those who are willing to embrace change and adapt.
As we reached our 20-year anniversary milestone this year, it felt timely to reflect on our industry’s growth to date, and turn our thoughts to what lies ahead for our dynamic industry.
While it is impossible to predict exactly what the industry will look like in another 20 years, we at Choice have identified some key themes that we believe will have a strong influence on the industry’s continued growth and progression in the years to come. Here are a few of them:
Growth through diversification and convergence
Mortgage broking has established a firm position in the residential lending market, with brokers now accounting for more than 50% of all loans written. Leveraging this strong position, our expectation is that growing numbers of brokers will expand their service offering into the areas of commercial and asset finance.
Up to 30% of broking customers are typically business owners, so there is a natural synergy between looking after customers’ personal lending needs and extending that service to help with their business needs as well.
We also expect to see more vertical and horizontal integration as sole proprietor broking businesses look to take their growth to the next level. This will mean more brokers incorporating complementary services into their businesses, including convergence with financial planning and accounting businesses, as well as consolidation of broker businesses looking to achieve additional growth through scale and shared resources.
Increasing professionalism
The spotlight is currently firmly on the broking industry and the ASIC and Sedgwick reviews are likely to lead to important reforms. While these reviews can create some uncertainty for brokers, we believe that in the long run, they will lead to better outcomes for customers, and in turn, greater trust in our industry.
We know that the broker industry is fundamentally sound, we also know that expectations of us continue to increase. Against this backdrop, we all need to continue to lift the bar when it comes to quality – in processes, documentation and customer experiences. This applies to aggregators, lenders and brokers. My view is that this will transpire into an industry more broadly recognised as a true profession which in turn will attract more customers and grow our market. Greater recognition that brokers provide the customer with better financial outcomes will be a real positive for our industry.
Rising importance of digital platforms
Technology has revolutionised the broking market over the past two decades, allowing for the easier transfer of information, outsourcing of key services and more efficient customer service.
Looking ahead, software platforms will become increasingly important when it comes to processing loans, as well as storing and leveraging data. Technology will also enable brokers to engage with customers much earlier in their home loan journey.
But technology will not replace the need for quality personal service. We expect to see the blending of different communications channels – face-to-face, phone and digital – to deliver the best possible customer experience.
These are exciting times for the broking market and we look forward to continuing to support brokers in this next phase of the industry’s evolution.
Stephen Moore has been the CEO of Choice Aggregation since 2010. This article is based on a newly-released Choice white paper ‘A world of choice: 20 years of mortgage broking’, launched to celebrate the group’s 20th anniversary.
