Broker Market Share Vs Complaints

Does your biggest fear involve one false move with a client...because that might put your business in a position of vulnerability? 

As you know, customers can lodge an official complaint to the AFCA (Australian Financial Complaints Authority) when they feel they were given advice about a product where the advice wasn’t in their best interests or was inappropriate, where the information was misleading or insufficient. Other reasons are privacy or confidentiality breaches, delayed actions, incorrect fees and transactions. 

The AFCA designed a new online comparison tool named Datacube that allows consumers to view the number and type of complaints made against any particular financial institution, service or representative. 

According to its latest result, we are stoked to find that brokers only make up a small pool of total complaints. More than anything, brokers account for more than half the market share (surpassed 60 per cent), bringing in loan settlements in droves. 

The latest complaint data from 1st July 2020 to 31st December 2020 revealed AFCA received 34,212 complaints, half of which were resolved at Registration and Referral. Unfortunately, the banks have borne the brunt of customer dissatisfaction with 12,746 complaints, followed by General insurers at 7,131. Mortgage brokers, on the other hand, received only 51 complaints in the five-month period. 

How did brokers do it? It seems brokers have built up some momentum and proven that they’re heading in the right direction. 

Brokers provide genuine value

Afterall, they are giving guidance that will shape the client's daily life for the next 10-20 years so it’s imperative to get them right. Mortgage Brokers tend to be maximisers who want to ensure clients get the most out of the choices they make. They are likely to weigh options carefully to assess which one will maximise the client’s benefit. When they give advice, they are likely very informed, logical and efficient since they’ve spent so much time deliberating possibilities and potential results. That pretty much sums up the role of a mortgage broker!

Brokers adapt to technological change

When the pandemic came crashing down, at first we thought it would be like a snowstorm but now it seems like an ice age. The idea is to train yourself to be as prepared as possible, given the changeability of life. You’re about to go on one of the most challenging parts of your career because the pandemic forced you to question everything you’ve always done. That’s what you need to do, you cannot afford to accept things as they are and will have to challenge the way you work regularly. 

In this new t