FundX chief executive David Jackson says finance broking is based on “deep personal relationships developed over years”, where the fintech sector relies instead on “rapid and inexpensive scaling”.
“What this means is that savvy brokers could consider forming commercially lucrative partnerships with fintechs in order to access value-adds for their customers,” he said.
While fintech companies will benefit from the exposure to the brokers’ networks, Mr Jackson said brokers who leverage this type of relationship instead of fighting it are “poised to benefit the most from the fintech revolution”.
“This will position them as innovative, forward-thinking, and best-of-breed, strongly assisting in acquiring and retaining customers through improved customer experience and choice.”
Finance Brokers’ Association of Australia representative Peter White added that while fintech hasn’t yet caused major disruption in the broking industry, “in the coming generations we will see a fundamental and permanent shift away from the way we do lending today”.
“At the moment the impact is minimal, but this is likely to change very quickly, meaning brokers will need to adapt and move with the times or risk being left in the wake of other more progressive players,” he said.