Industry leaders, including presidents of both industry associations, gathered at a professional development day this month to discuss the changing mortgage market and industry as a whole.
Themed as “Ever Changing. Ever Evolving.”, PLAN Australia’s 2018 Digital Residential Professional Development Day featured six sessions covering technology, risk management and building sustainable broking businesses.
In the opening session, PLAN Australia CEO Anja Pannek was joined by Peter White, executive director of the FBAA, Mike Felton, CEO of the MFAA and Peter Clark, a member of both PLAN Australia and the Combined Industry Forum (CIF), in a panel discussion on how the broking industry will adapt, change and thrive into the future.
The session provided participants with an understanding of the work underway in response to the Australian Securities and Investments Commission’s (ASIC) Broker Remuneration Review, through the CIF, discussing why self-regulation is important and what changes brokers can expect looking forward.
Pannek said, “We are not only in a period of unprecedented change, but also a period of unprecedented collaboration. The CIF is a classic example of how we remain committed to working proactively for the benefit of customers and of our industry with Government, Treasury, regulators and all industry participants."
Felton added, “The CIF has been a defining moment for our industry. We defined our goal which is achieving ‘good customer outcomes’ and reinforced that each stakeholder has a legal duty of care in putting their customer’s interest ahead of their own. We’ve had the foresight to be frontfooted and are implementing reforms as we speak to come out with strong solutions for the industry.”
White also added, “A further recommendation that came out of the CIF report is having an ASIC approved uniform code of conduct across the whole industry which is more transparent, enforceable and accountable. This work is well underway and we’re all working as a team to achieve this.”
Pannek said industry change represented a strong opportunity for brokers to drive productivity and review their business plans and customer proposition to enable them to thrive into the future.
She added, “There is a strong need for guidance and advice to cut through the continued complexity in the lending landscape. I see more Australians using brokers in the next five years than ever before."
Her comments were echoed by Felton, who highlighted brokers’ growing share of the home loan market.
He said, “At a time when confidence in the entire financial sector is in question, 55.3% of customers continue to flock to mortgage brokers, which in my view is a clear reflection of the positive customer outcomes being produced.”
Peter Clark highlighted the opportunity to continue to grow the broking industry by attracting fresh talent.
He said, “New entrants are seeking reassurance if this is the right time to enter the broking world. I believe now its more important than ever for clients to have a trusted adviser by their side to help them navigate the policy changes.”
White added: “If you ask: is it a good time to enter the industry?, I’d say ‘Yes, it is”. If you can cut it today, you can cut it anytime.”
Pannek encouraged all members to take the time to read the CIF report, emphasising the great context it provides as to the industry’s future direction.
Clark said brokers should stay informed, ask questions and participate in educational events offered by their aggregator.
He said, “The role of an aggregator has become even more important in the current environment. Joining hands with a good quality aggregator will take you a long way in your broking journey."
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