The CEO of the Finance Brokers Association of Australia (FBAA) believes that 2014 will be a year of change, education and reform, predicting new players in the broking sector and new technology.
Peter White says this year will see “new entrants in the market” as more people turn to brokers for finance.
“The industry must be on the front foot this year, promoting the benefits of using brokers. We cannot allow the negative publicity of brokers behaving badly to define our industry.”
He also hopes that the public will become more aware of the unfair side of Lenders Mortgage Insurance (LMI), and has committed the FBAA to continuing the fight to make LMI portable and transparent.
“We support LMI as a necessary insurance, but have fought for a long time to remove the restrictive and unfair nature of it.
“The FBAA has been a lone voice on this matter, and I am proud of the way we have led and continue to lead the industry, for the benefit of all consumers.”
Mr White said public education in all areas of borrowing must be pursued through 2014.
“As we strive to better educate people on borrowing in general, we’ll see more loans and better loans, which will benefit the industry,” he said.
“This could also be the year of even more technological change with loan application processing using apps as well as email and PC logins,” he predicted.
The industry veteran believes that low interest rates will benefit brokers and sees rates as “dropping by around 0.25 per cent” this year, though he said there is a “good possibility of a rise in the fourth quarter”.