Industry stalwart says he wouldn't be surprised if broker market share hit 80% in coming years
With more than 36 years in banking and finance across Australia, the UK and Papua New Guinea, Clive Kirkpatrick has been in it for the long haul. But, never has he seen such a period of change as what we are experiencing right now. MPA spoke with the newly appointed FBAA board director about what he thinks the future will hold for broking.
Giving back to the broking community
Most recently known as general manager distribution for the Yellow Brick Road group, Kirkpatrick has served in a variety of roles across banking, financial planning and aggregation for more than three decades, including general manager for mortgage broking at St George Banking Group and head of franchising at Rams Home Loans.
At the start of this month he was appointed director to the FBAA’s board; described as “one of this industry’s true gentleman” by managing director Peter White AM.
He says he feels inspired by the chance to give back to an industry that has given him so much over the years.
He also hopes to provide his experience to the board in order to reflect the diversity of the broker and customer base within an ever-changing market.
Positivity in a time of change
With best interests duty coming in January, the review on broker renumeration happening before the next election and open banking in its early days, he says the industry is in a period of transformation.
Despite this, he believes mortgage broking has a bright future.
“I think best interests duty will positively impact the view of brokers in the community.”
“Brokers can now can say to a customer, I am legally obligated to have your best interests as the primary thing that I focus on. Whereas if you walk down the street to a bank, they’re not under the same obligation.”
He believes this will have a positive effect on broker market share over the next few years.
“I wouldn’t be surprised if we get to the high end of the 70s to 80% market share.”
“Brokers who are going through the hard yards now will become even more successful into the future.”
Looking after your health
With the pandemic causing a major impact on the economy and the livelihood of borrowers, Kirkpatrick says brokers need to look after their physical and mental health first and foremost while helping customers through this period.
Maintaining a positive attitude will help to shape the future prospects of the industry – as will taking positive action.
“Regulatory change will continue to occur. Good brokers are already doing best interest duty without being told how to do it, so don’t be fearful of that change.”
“Regarding the remuneration review, from my understanding, our interaction with government and treasury, is that they understand that anything they do that negatively impacts the broker market puts power into the hands of the major banks – and that’s not the outcome that they want.”
“We need to demonstrate given that we are almost 60% of mortgage distribution in Australia, that we are a component, trustworthy industry or profession.”
“Then we don’t have to worry about constant reviews because we’re doing the right thing every time.”