The mortgage broking industry must attract new entrants or risk cannibalising itself, Vow CEO Tim Brown has commented.
Brown has previously tipped the company's recruitment plan, due to launch by year's end, which will see it try to attract new entrants rather than draw brokers away from other aggregators. He told Australian BrokerNews the industry needs structured plans to recruit new talent, or it risks shrinking margins.
"I think as an industry what I've seen in my experience is that margins continue to reduce and reduce because we continue to cannibalise each other by not bringing new people in. There are only a finite number of people you can do that with before the margins begin to get down to nothing at all," he said.
Brown commented that the Vow program will help experienced brokers in the recruitment and training of new talent, with the eventual goal of being succeeded by their recruits. He said he believes the mortgage broking industry cannot simply take for granted that potential entrants will be attracted to it.
"Mortgage broking was caused by the cataclysmic event of the banks making people redundant. The banks are recruiting right now; they're not making people redundant. If we wait around for that to happen we're going to be waiting a very long time," Brown remarked.