The New Zealand Mortgage Broking Market
Mortgage broking in New Zealand is somewhat unique because the country is so small, and a small number of large broking companies have ended up dominating the market to a massive extent that would be difficult in a much larger country.
These large broking firms worked out a few years ago that there would be a steady trend towards Internet search for customers needing the best mortgage brokers Nelson has to offer, and that there would be in this case very clear winners and losers. They took what was then a courageous step and committed a large amount of capital development to building a classy website and developing the SEO necessary to ensure that they came up as much as possible in the number 1 or number 2 slot for Google searches.
The strategy can be high risk, because if you do not get in the number 1 or number 2 slot you will be winning only a small fraction of the new business that you were otherwise win, and for many companies that have attempted this their investment is largely wasted.
The companies that have succeeded in ranking themselves in the top 3 pretty much have a lock on that spot and therefore a lock on over 60% of all the new business coming up through the Internet. While is very effective for them it is not necessarily good for the average customer, because as in any industry the dominant player does not need to give exceptional service if that is not the key to them winning business.
In the mortgage broking sector this is particularly the case, as the dominant players have become lazy and arrogant, to the point that they will use administrative staff to pre-screen callers to eliminate all but the straightforward customers. Even in a property downturn such as is happening in late 2017 these companies are still receiving so much work on a daily basis that they can afford to reject all but the most simple and straightforward clients.
Needless to say this is not efficient economically, and is therefore liable to disruption. This is indeed the case in New Zealand, where a small startup company with exceptional SEO expertise is executing a business model that will make certain that they are ranking their own website in the top three for major search terms. They have a model that passes any leads that are generated directly to a compliant mortgage broker within the Northland region who is of the old school and is able to handle any complex problem that is throwing his way.
They are in the early stages of executing this business model, but the long term outlook is impressive. They may not make a dramatic impact on the large companies, but the impact on their own company and their compliant broker will be very significant in a very positive way.