Uncertain outlook puts focus on protecting broker businesses from shocks
Mortgage brokers should diversify their service offering and revenue streams as borrowers face pressure from consecutive Reserve Bank of Australia (RBA) rate rises and uncertainty tied to the conflict in the Middle East, aggregator Finsure has said.
Simon Bednar (pictured top), chief executive of Finsure, revealed he had been speaking with brokers in Australia and New Zealand about strengthening business resilience by widening the range of services offered. “I have been urging brokers to address their service offerings and revenue streams,” he said.
“We are all facing challenging times with interest rate increases and market fluctuations outside of our control. It’s important for brokers to be prepared to diversify their service offering and revenue streams in response to these events. This will enable brokers to offset the negative impact of rate rises and better protect their businesses from unpredictable outside forces.”
According to Bednar, the mortgage broking industry is increasingly moving towards a more professional approach which helps develop more loyal clients during difficult times.
The RBA has delivered back-to-back increases of 0.25 percentage points, taking the cash rate to 4.1%, amid concerns that further oil supply shocks could add to inflation.
The central bank’s latest move — described as only the second rise in two years — followed a lift in weekly inflation expectations to 6.7%, the highest level since November 2022.
In a statement, the RBA’s monetary policy board said it judged there was a material risk inflation would remain above target for longer than previously expected, with developments in the Middle East highly uncertain.
Financial markets have been forecasting a further two rises of 0.25 percentage points this year.
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