Time is cherry ripe for brokers: FBAA

The Finance Brokers Association of Australia (FBAA) says brokers are being presented with a wonderful opportunity to help clients achieve a better mortgage outcome as banks tussle to keep customers satisfied.

The industry’s peak body has pointed to new survey figures from investment bank UBS, showing a marked increase in customers ‘seriously considering’ switching to a rival lender.

The survey, consisting of 1,150 customers, revealed that most considered the key factors to changing banks and refinancing were due to exorbitant fees and interest rates.

UBS says the proportion of customers seriously considering switching rose to 12 per cent, up from seven per cent last year.

The FBAA’s Peter White says it is clear cut that nothing sways a customer more than the chance to attain a better and more suitable deal on their loans.

“Banks can promote their latest online tools and other marketing ideas but the bottom line is that competitive forces are strongly at play and customers should always be asking the question.”

“This is where brokers come into their own as they know the market better than anyone.  More importantly, they understand their client’s needs which can be forever changing.”

Mr White says in the United Kingdom, there are campaigns encouraging customers to shop around because they want to promote healthy competition in the lending sector.

“This is the future and it is why the UK mortgage market has around 70 per cent of loans being arranged by brokers.”

“As an industry we have to be front and centre in this space and change the mindset of those who are not aware of the mammoth benefits of refinancing.”