Background
In the late 1980’s, the Australian financial market was deregulated. New financial players entered the markets, a number of mergers occurred and competition was intense. Particularly for credit products. As a result, the lending market has had to compete vigorously for market share and this has led to the growth of alternative distribution networks. In the last ten years, the Australian mortgage broker industry has sprung up and represents a cheaper method for lenders to reach their target markets.
Formerly, Australians would go to their bank with whom they had had a relationship but the banks have closed a lot of their branches and personal banking is being conducted electronically and through the internet. In fact, it is common to conduct all personal banking without ever coming into now contact with a person. Further, consumers in Australia have become time-poor which has encouraged this form of banking. The mortgage broking industry offers a solution in the form
