Competition in the broking industry is driving better consumer outcomes and creating an environment that promotes responsible lending.
This was the conclusion from the National Finance Brokers Day (NFBD) online Q&A session held yesterday (16 August) which saw NFBD founder
Dino Pacella sit down with Yellow Brick Road chairman
Mark Bouris.
“There are 12 or 13,000 [brokers] in this country who unless they do a deal for you, they don’t get paid,” Bouris said, speaking directly to consumers. “These individuals, male and female, this is their job. They actually want to help you get a loan that suits your profile.”
He continued, saying that a broker will always get a loan for their client that the banks will approve.
“They have to become good at knowing what the banks will approve for your circumstances. If they get that loan approved and settled, they get paid. So if there is so much appetite out there to help me as a borrower, why wouldn’t I access it?”
Competition within the industry and individual brokerages presented a good outcome for consumers, he said.
“Everybody’s competing. All these 12 or 13,000 guys, they’re all competing with each other for your business.”
Bouris also expressed his confidence in the broking industry as a whole, saying that it contributed to the overall financial stability of the country.
“We all try to do the right thing but sometimes there are aberrations and there are people who act irregularly. As far as I’m concerned, they should be stamped out of the industry. There should be zero tolerance and they should be gone forever.
“But I think in general, the greatest majority of people who operate in this industry are in it for the right reasons. They do the right thing by the banks … and secondly they do the right thing by the consumer. They are all smart enough and they’ve been around long enough to know that unless they do the right thing, there is not much longevity in the industry for them.”
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