Powered by MOMENTUM MEDIA
realestatebusiness logo

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

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

Over four in 10 home owners are using the equity in their home to get ahead on their mortgage, a NAB survey has found. ...

Less than five months after its business and agribusiness divisions were joined, the banking group has appointed the conglomerate’s first...

The mutual bank has expanded its partnership with NextGen in a bid to establish a complete end-to-end origination and assessment process. ...

VIEW ALL

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

Do you think the new NSW property tax will help or hinder first home buyers?

Website Notifications

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