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As 2024 draws to a close, a year marked by stabilising interest rates, rising loan sizes, and evolving consumer expectations, Connective’s Mark Haron has outlined the critical trends, regulatory shifts, and opportunities brokers must focus on in 2025.
Looking ahead, Haron predicts three major trends that will shape the broking landscape in 2025, the first being interest rate movement and borrower engagement.
“The biggest question is not ‘if’ rates will drop but ‘when’ and by how much,” Haron said.
“Brokers should prepare for a period of significant borrower activity in the second quarter of 2025 as rate cuts materialise and consumers seek better deals.
“Showing a mix of expertise and support through proactive client engagement will be paramount as borrowers evaluate whether their banks are passing on rate cuts in full and explore refinancing options.”
The second trend is already evident through Connective’s proprietary data, with Haron expecting more opportunities in commercial and non-prime lending. Results from a recent poll showed that while 44 per cent of brokers have already used private lenders, another 45 per cent are considering doing so.
“Tighter lending criteria from major banks have created a golden opportunity for brokers to support clients through alternative funding solutions,” he said.
"We’ve seen an unprecedented 15.5 per cent year-on-year growth in commercial settlements, demonstrating the value brokers can offer in this space. Brokers equipped with the right education and tools will find new revenue streams in 2025, especially in debt consolidation and non-standard lending.”
The third trend revolves around how digital transformation can help brokers meet evolving client expectations.
“Consumer expectations for seamless, technology-driven experiences are only increasing,” Haron said.
“Platforms like Connective’s very own Mercury Nexus will continue to play a pivotal role in helping brokers meet these demands, offering tools like real-time servicing calculators, automated client portals, and AI-driven lender policy insights.
“Brokers are already relevant, but those who embrace digital transformation will make themselves highly visible and therefore, more competitive in an increasingly digitised market.”
Looking back on 2024, Haron believes the most successful brokers were those who prioritised client engagement and embraced innovation.
“Connective brokers demonstrated exceptional adaptability in a year that saw high yet stable interest rates, a recalibration of refinancing activity, and significant growth in areas like asset finance,” he said.
“One of the standout lessons from this year is the power of consistent communication. Brokers using engagement tools like our Digital Marketing Hub to engage clients saw 40 per cent higher settlement volumes compared to those who didn’t. It’s a clear reminder that visibility and proactivity are critical drivers of success.”
Haron’s advice for brokers heading into 2025 is clear: leverage technology, maintain strong client relationships, and be ready to adapt.
“Expertise and adaptability will define success in 2025. Whether it’s guiding borrowers through rate cuts, exploring new opportunities in non-prime, private lending, commercial, or simplifying complex processes with cutting-edge broker technology like Mercury Nexus, the opportunities are there for those who understand what is available to them and prepare,” Haron said.
“By staying proactive and embracing innovation, brokers can not only thrive in this evolving landscape but also set themselves apart as indispensable advisers to their clients.”
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