Open banking could make expense checks easier for brokers

Brokers will be one of the many beneficiaries of the comprehensive credit reporting and open banking regimes, according to mortgage industry executives.

Stephen Moore, CEO of Choice, believes brokers will significantly benefit from the mandatory comprehensive credit reporting (CCR) regime — which is yet to be legislated despite the government imposing a deadline on the major banks to submit 50 per cent of their CCR data by 30 September 2018 — and open banking more broadly.

“We have a fundamental belief that the future of broking for many brokers is a combination of digital interaction with customers married with high-quality face-to-face advice,” Mr Moore told The Adviser.

“The reason we say that is because what [open banking] will then enable, with the client’s permission, of course, is the [ability] to have all of the hard data that other institutions would have on that client.”

He continued: “But because brokers know clients better than anyone else across the chain, we think that [they] are in the box seat to be the beneficiaries of comprehensive credit reporting and open banking.

“They’re in the box seat to provide customers with not only better advice [in line with] their circumstances, but in many cases where there’s more work that a customer needs to do to correct any deficiencies on credit record, it’s a real value-add to work with customers right up front in the process, rather than wait until after loan submission.”

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Source: Open banking could make expense checks easier for brokers – The Adviser