Mortgage brokers in New Zealand have been periodically disrupted, typically by large scale crashes in the property sector that radically reduce the amount of business they getting, and in the case of the past 6 years they have been disrupted by new regulations that have made it much harder to gain qualifications and become registered as a mortgage broker.
The mortgage brokers in Christchurch today have a lot of new individuals compared to 10 years ago, and largely the disruption of the past 7 to 8 years has worked very well for the residential consumer.
There is a lot more disruption that is going to happen, driven in a large part buy the development of online markets and services. A big disruption happening right under our noses is caused by the capability of a few large mortgage broking companies to completely own all new business that originates from a customer doing a Google search online. There is a massive trend around the world and the New Zealand customers are becoming more and more comfortable with finding new suppliers for Services online, and in New Zealand there are over 9000 searches a month for mortgage brokers. These 9000 searches obviously do not represent 9000 you mortgages, but they do represent a high proportion of the customers that are looking for a new mortgage broker or lender, and almost all of this new business ends up with the few small companies.
These companies probably represent less than 10% of all the mortgage brokers in New Zealand, but they are winning around 95% of all the Internet generated with business. The remaining 90% are well aware that they are getting very little business through their own website, but they do not fully understand the extent to which all this business is siphoned off buy the lucky few.
There is a potential disruption looming for these lucky few, and it is based around competent SEO businesses that are able to build a quality website and get it very highly ranked and therefore attract new business that would be otherwise going to these lucky few. These SEO businesses could potentially siphon off a very large percentage of new business, and with the right mobile apps and back and applications they can deliver this traffic in real time to the mobile phones of the remainder of the mortgage brokers in Canterbury. They can in fact deliver the equivalent of a Robinhood service, taking leads from the rich and forwarding them to the poor.