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A new report by Wisr has unveiled key insights into the financial concerns of Australian brokers and consumers, highlighting how the rising cost of living and high interest rates are influencing their financial confidence and stress levels.
The Money on Your Mind report, based on surveys of 718 Australian finance brokers and 3,488 consumers, covers a range of topics concerning personal finance, the future of the finance broking sector and emerging trends affecting brokers.
Financial pressures on consumers
The report revealed that while 80 per cent of Australians feel confident about their finances, only 63 per cent of brokers believe their clients share the same level of confidence.
Brokers attributed this gap to the pressures of high interest rates and increasing living costs, which have contributed to rising levels of financial stress.
A significant 79 per cent of brokers reported that their clients experienced more financial stress in 2024 compared to previous years. The main causes of this stress were identified as the rising cost of living, the cost of rent or mortgage repayments and clients taking on too many financial commitments.
When asked about the borrowing process, brokers revealed that 41 per cent of their clients were most uncertain about understanding their maximum borrowing capacity. Another 28 per cent of clients struggled with understanding the required documentation for the borrowing process.
Nicole Evans, head of broker at Wisr, said: “It’s undeniable that Australian consumers have been dealing with some very difficult external conditions and finance brokers are uniquely positioned to understand these challenges.
“Financial stress can be debilitating and for those looking for a loan, it’s clear that more needs to be done to simplify the process and communicate more clearly with clients to make the experience seamless.”
Brokers as trusted advisers
Brokers are considered a trusted source of information by many consumers. According to the report, 40 per cent of consumers who used a broker to arrange their loan did so because they believed the broker had more knowledge and experience.
The next most common reasons for working with a broker were to get guidance on the loan application process (39 per cent) and to secure the lowest possible rate (37 per cent).
Despite the high expectations placed on brokers, these expectations appear to be met, with 79 per cent of consumers expressing satisfaction with their broker experience.
Evans further said: “The experience and skill set brought by brokers to the lending process make them an essential partner for many Australians seeking finance. It goes beyond finding the cheapest rate; clients are looking to brokers to provide guidance and support from the beginning to the end of the loan journey.”
The role of brokers is clearly evolving, with 82 per cent of brokers stating that clients are now seeking more than just the lowest rate. A further 98 per cent said that speed and efficiency will become even more important to clients in the future.
“As consumers’ needs and requirements grow and evolve, brokers are tasked with supporting their clients and satisfying a number of requirements. Brokers truly act as a trusted partner for their clients and with a number of external pressures impacting Australians, this role will only continue to grow,” Evans added.
The future of the sector
The report also explored the role of technology in the finance sector. Both brokers and consumers appear to be aligned on the potential impact of artificial intelligence (AI).
Only 41 per cent of brokers said AI is currently influencing how their clients engage with their finances, a view shared by 41 per cent of consumers.
Looking ahead, the future of finance broking in Australia looks bright.
A massive 95 per cent of brokers believe the finance broking sector is growing, and the same percentage reported that more Australians are turning to brokers to help them achieve their personal and financial goals. In addition, 80 per cent of brokers noted that they are seeing more repeat clients than ever before.
Evans said: “Trust is clearly key when it comes to consumers and brokers are viewed as a trusted party.
“It’s understandable that brokers back the growth of the sector but there’s been a noticeable shift in the number of Australians looking to professionals for guidance and support.
“There’s a recognition that brokers provide a valuable service and play a key role in supporting consumers in achieving their personal and financial goals.”
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