Wisr, an Australian fintech lender, has launched its inaugural Money On Your Mind report.
The Wisr report, based on a comprehensive survey of 718 finance brokers and 3,488 consumers, sheds light on current sentiments, trends, client confidence, and the impact of external conditions on financial planning in the Australian finance broking sector.
A significant finding from the report is that while 80% of Australians feel confident about their financial situations, only 63% of brokers perceive that their clients feel the same.
The primary concern affecting client confidence is the rising cost of living, noted by 95% of brokers, followed by mortgage and rent burdens.
When questioned about the borrowing process, brokers said that understanding maximum borrowing capacity is a common area of uncertainty for clients, with two in five brokers (41%) identifying this as a challenge. This concern is followed by the need for clarity on which documents need to be supplied, noted by 28% of brokers, Wisr reported.
Despite the rapid evolution of technology, 69% of brokers believe that artificial intelligence (AI) has not significantly changed how clients manage their finances.
Both brokers and consumers agree on the moderate impact of AI, with 41% of each group acknowledging its potential influence on financial engagement, the Wisr study found.
The role of finance brokers is increasingly seen as beyond just finding the lowest interest rates.
Nicole Evans (pictured above), Wisr’s head of broker, said brokers are trusted sources of information, with 40% of consumers choosing brokers for their knowledge and experience.
The latest MFAA research supports this expanded role, showing that the number of finance brokers reached a record high of 22,031 in March, marking a 13.2% increase from the previous year.
Common reasons for working with brokers include guidance on the loan application process (39%) and securing the lowest rates (37%).
The majority of consumers, 79%, reported satisfaction with their brokers’ services, highlighting brokers’ crucial role in navigating complex market conditions and simplifying the loan process.
“Financial stress can be debilitating and for those looking for a loan, it’s clear that more needs to be done to simplify the process and communicate more clearly with clients to make the experience seamless,” Evans said.
As consumer demands and the broader financial landscape evolve, brokers find themselves increasingly essential in navigating these complexities. Their role as trusted advisors is expected to expand further due to ongoing external pressures affecting Australians.
The Wisr report also found that 80% of brokers are experiencing more repeat business than ever, reflecting a growing trust and reliance on brokers to achieve personal and financial objectives.
This trend is supported by the fact that a significant percentage of brokers, 95%, believe the sector is growing, with more Australians turning to professional advice to navigate their financial journeys.
Looking ahead, the finance broking sector is poised for growth, with a strong belief among brokers that their services are increasingly valued. Challenges remain, however, particularly in terms of managing client expectations and adapting to technological advancements.
For more details on the Money On Your Mind report and to download it, click here.
