Where are all these market changes heading? What does it mean for the broker, but also what impact does it have on clients? The regulators and senior executives on inflated pay packets don’t need to worry about qualifying for a loan, but what about the people that do? Where do they go?

The Royal Commission is placing commission under the spotlight, again, to review earnings based on incentives to brokers for writing loans and placing clients with unsuitable providers or inflating the facility limits to increase the commission earned. How is this now possible?

Whilst there were certainly brokers in years gone by that have taken advantage of these loopholes, today’s market is very different and it is near impossible to affect this outcome. Why? Who does it impact? Clients of course.

With the significant changes to the reporting and testing of living expenses, the increases to the assessment rates and reduction in the interest only lending, not only is credit tightening, there is real concern about the loans available for the average Australian.

The regulatory changes made to the credit and lending market over the past twelve months have ensured that not only are brokers earnings reduced, the compliance and supporting information now required ensures that brokers have to be up to date with changes more than ever before. Every transaction now needs to be reviewed, checked and reassessed and checked again… even before we submit them to the bank or lender. How does this translate into providing a good customer experience whether it be broker or bank? What’s next for the current generation and also for the next? Options? Solutions? Competition…Opportunity!

Brokers provide all of these to customers, not banks. As the RC continues to highlight irresponsible practices and dishonesty in what has always been deemed as the pillars of our society, brokers will continue to serve the clients looking for the best options, solutions and competitive advantages to replace the relationship banking models that have become foreign to the institutions that created them.

I believe it is time for clients to vote with their feet and support some of the lenders that have carried on with business and have supported the underserved clients and brokers in the market….go on, your bank balance will love you for it!

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