The Finance Brokers Association of Australia (FBAA) says the industry can achieve a 70 per cent or higher market share of the home loan business, and 50 per cent of commercial and business lending origination.
The association bases its prediction on its Global Research Paper, which was the result of extensive research on how home loans are conducted around the world.
“Brokers in Australia have every opportunity to follow markets like the UK and dramatically increase origination market share of home loans written,” said FBAA executive director Peter White.
“The high level of professionalism and best practice engaged in Australia under our regulations, and genuine concerns for skilled conduct producing best outcomes for borrowers, is a recipe for more and more borrowers using brokers.”
As an advisory board member with the Small Business Association of Australia (SBAA), Mr White sees opportunities for brokers in the small business sector to improve the service they currently provide, and believes broker services are underutilised.
“Many brokers are very proficient at business and commercial lending, but they need stronger knowledge skill-sets that deepen their understanding of how those loans function within business markets.
“If you are dealing with a borrower who is in an aged care facility, you need to understand the aged care market and its needs. Same with hoteliers, restauranteurs and motel owners, so you can speak their language and gain their respect.
“When you actually know their industry and market, you will own the right to their business.”
The FBAA will be conducting a Commercial & Business Lending Master Class series this year via the FBAA’s Commercial & Equipment Finance Committee, which is chaired by Glenn Mitchell, who is also head of Commercial & Leasing at Vow Financial.
“This series will give brokers the skills to be expert professionals in this area of lending without being bank specific and is a unique series to the broker market,” said Mr Mitchell.