Powered by MOMENTUM MEDIA
subscribe to our newsletter

Budget key to restoring consumer confidence

The federal Budget is an opportunity for the government to support the implementation of the Financial System Inquiry blueprint, according to one industry body.

The Customer Owned Banking Association (COBA) said appropriate funding and resourcing is needed to properly implement the FSI’s recommendations for a more competitive and pro-consumer financial system.

COBA chief executive Mark Degotardi said the Murray report found that consumer confidence and trust needs rebuilding, and a stronger focus on consumer interests is required.

“The report warned that high market concentration and increasing vertical integration in some sectors of the financial system could limit competition in the future.

“Mortgage broking is one such area of concern, given that aggregation and broking groups [that] are totally or substantially-owned by the big four banks comprise an estimated 40 per cent of mortgage brokers,” he said.

Advertisement
Advertisement

PROMOTED CONTENT


Mr Degotardi said the FSI found that consumers often do not understand mortgage brokers’ association with product issuers and how this might limit which products they can recommend.

“The FSI said greater transparency would help build consumer confidence and trust,” he said.

Budget key to restoring consumer confidence
mortgagebusiness

Latest News

The RBA has studied the role of collateral in credit markets under stress, and has found that collateralised borrowing rose for some segment...

Auction volumes surged significantly over the December quarter across Australia, largely attributed to a “resurgence” in Melbourne, acco...

Loan conditions and collateral guarantees continue to be major stumbling blocks for small businesses looking to access financing, according ...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: A new record in mortgage approvals

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.