David Hayward | Money Institute | October 7, 2010

The broker industry faces uncertain and perhaps troubling times in 2011 due to rising consumer debt levels, higher interest rates, large rises in living costs-such as electricity prices, intense competitive pressure from the banks own sales personnel and new tough compliance laws.

The industry has undergone significant change in the last 5 years, which is likely to continue unabated in the years ahead. Many industry experts are predicting a 20-30% reduction in broker numbers as it gets too hard to survive and make a decent living.

According to David Hayward, Managing Director of The Money Institute all these forces seem to be combining for a Perfect Storm in the industry.
“If you can stand back long enough to see the perspective, then you may be slightly concerned at the future viability of the industry. It would appear that ordinary Australians are finding it increasingly more difficult to manage their financial situation and rising debt levels. In fact many international experts believe the property market may significantly decline due to ‘affordability index’ of owning a home. When you consider the likely chances of further interest rate movements upwards and the increasing pressure on household budgets for electricity bills, food and petrol the market may experience some degree of difficulty in the future”

“Adding to that is the increasing reliance of banks on their own sales teams, including mobile bankers, the fight over margins and the customer and the significant risks to the brokers business that new NCCP compliance issues entail, then I do believe brokers need to re-consider strategically their business models with the intent of positioning themselves uniquely from the mainstream.”

As a result, The Money Institute is just about to release its Smart Broker Program that focuses on ways for the broker to increase their sales, generate greater commission out of additional product sales, deepen their customer relationships and ensure compliance concerns are properly addressed.
“We are excited about this program as we believe it is going to help the broker enhance their business model and survive these difficult times. It offers key solutions to many of the issues of concern and those brokers who wish to stay one step ahead of the game are urged to get more information from our organisation”

It is often said, adapting to change is one of the key traits for continual survival and to prosper while others may fail. Planning for the future and unforseen situations is one of the smartest things business owners can do to survive. For more information contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it