A lender, a broker and an industry association are all embracing the change of leadership in Canberra with the hope that the new Prime Minister will have a deeper understanding and appreciation for the broking industry.
In a surprising and suspenseful last week in politics, Scott Morrison, the former Treasurer, was sworn in as Prime Minister.
“As the most recent Treasurer, he’ll come into the PM role with a solid understanding of the industry and the role brokers play in promoting competition in lending,” said Confidence Finance director Redom Syed.
Morrison was the one who introduced the major bank levy last year, and he has shown he’s a proponent of open banking and fintechs.
As a supporter of small business and competition, Murray Cowan, managing director of Better Mortgage Management, said he sees this as a positive development.
“Brokers are a major distribution channel for smaller banks and non-banks, so from what he has said previously around the need for greater competition, it would appear that he would not be in favour of any changes that lessened that,” Cowan said.
While having the former Treasurer in the top job may be a positive for the industry for now, everything could change next year.
“Nonetheless, with the election less than a year away, the implementation and take up of the royal commission findings will likely sit with the next government, whoever that may be,” Syed said.
FBAA executive director Peter White welcomed the news and said he had a “long-standing relationship” with Morrison having met and discussed the industry with him several times as Treasurer.
“The Prime Minister understands the importance of financial policy and its impact on the lives of all Australians. And I know he values the important role that brokers play in the mortgage lending market, and that unnecessary additional regulation isn't the answer to the royal commission.”