How AI is shifting the broking industry

The MFAA released a research report, titled Embracing the future: Towards the safe and ethical use of AI for the mortgage broking industry, detailing how the broking industry is adopting AI and utilising it to streamline processes.

Roundtables were held across the country, comprising 75 total members from small to large organisations. According to MFAA, increased efficiency was a major benefit for those who had implemented AI into broking practices.

“Those that had adopted AI in their businesses noted the benefits in recording client meetings, automating marketing collateral, and streamlining client communication. Many members highlighted the use of AI for language translation and also preparation of communication in a professional voice that they found more efficient,” read the report.

“The rising adoption of AI highlights the industry’s recognition of the transformative potential of enhancing efficiency. There was also a strong sentiment that those who haven’t embraced this technology should do so to avoid being left behind.”

Further to boosting efficiency, MFAA CEO Anja Pannek said that client experience can also be improved upon.

“The emergence of AI gives brokers the opportunity to adapt and improve their business and client experience like never before,” she said.

“These insights clearly highlight the need for industry guidance on the safe and ethical use of AI … AI will never replace the value a broker brings to their client – the human, and deeply personal relationship that only a broker can have with their client.”

Speaking to Broker Daily at the MFAA Hello Future National Conference 2024 in Melbourne, Durham Consultants director Rebecca Wu discussed some of the ways AI is helping promote efficient practices within her business.

When asked what are the opportunities that AI presents for brokers, Wu said they were “endless”: “AI can do a lot of things for brokers but I think AI is still in the initial stage. As a business owner, we need to be using it a lot more.”

AI presents the opportunity to reduce the administrative aspects of broking and allow for a more client-orientated approach, which Wu said is beneficial to providing a holistic service.

Similarly, compliance can be maintained, which Wu believes is a cost-effective way of staying up to date with regulations.

“We can focus on more client facing work instead of data entry work. You’re looking at the trend at the moment for us in the compliance sense. A lot of compliance needs to be dealt with. So that’s why a lot of people employing VAs (virtual assistants) to help. In a way it’s creating a lot of jobs, but in the meantime, some of those jobs can be replaced by AI, which is more accurate. And you save a lot of cost and time,” she said.

However, AI should be a way to improve work, not replace it completely. Over-reliance should be avoided.

“For example, ChatGPT gives us data. Are we to just use it? We should not. We should cast our eye on the things it says, because it could be getting it wrong,” said Wu.

“So still requires us to really focus on the outcome, whether or not it’s representing our view. That would be much better in building trust with the customer, I think it’s vital. Customers want to see it’s us doing it. It’s not a machine doing it. But we’re using machine to enable us to do a better job.”

Despite the advantages AI can bring to the way we work, there is hesitance. Wu said that some brokers are set in their ways, leading to a lag in adoption. Education is the way around this barrier.

“Some brokers are very stubborn or very hard to change. First of all, they have to be educated. They have to be aware first before they actually take that next step. And the next step is considering what sort of costs there are going to be. Is that free or is it a subscription? So, they will make some analysis of that according to their situation,” she said.

“I think most brokers now realise how important AI in our life. If they don’t know it, they should learn it and embrace it and know that it’s not 100 per cent, but it will get better.”

[Related: Spotlight: AI in the mortgage broking space]

Jack Campbell is the editor of Broker Daily. After graduating from the University of Wollongong in 2022, Jack began his journalistic career working on Broker Daily’s sister brand, HR Leader. In August 2023 he was made the news editor and worked alongside some talented journalists writing articles and recording podcasts.

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