The Mortgage & Finance Association of Australia (MFAA) reports that the broker channel now accounts for over 70% of new Australian home loans, underscoring the vital role brokers play in guiding borrowers through complex financial decisions. However, the challenge remains: how can brokers operationalise trust in an industry facing regulatory pressure, shifting demographics, and AI disruption?

The economics of trust

The growing dominance of the broker channel highlights a key market reality: borrowers are seeking trusted advocates. Despite this, trust in financial services remains fragile, as evidenced by the Edelman Trust Barometer, which consistently ranks the sector below others. For brokerages, this presents a strategic opportunity to transform trust from a mere promise into a measurable performance system.

"There’s solid economics behind it," explains an industry expert. "Bain & Company has shown that even modest increases in customer retention can lead to disproportionately large profit gains across industries. In broking, where lifetime value depends on refinancing, cross-selling, and referrals, a trust-led model can significantly enhance returns."

Operating model: Trust-by-design teams

The traditional model of the lone hero broker is giving way to specialised teams comprising advisers, loan processors, compliance officers, and marketers. This shift is not just about efficiency but also about reliability. Clear roles within these teams reduce errors, shorten cycle times, and create auditable trails that both regulators and clients can trust.

"Defined service levels and transparent file notes are crucial," says a brokerage leader. "Proactive client updates at set milestones and clear documentation of decisions and product comparisons strengthen the Best Interests Duty evidence trail."

To track the metrics that matter, brokerages are focusing on indicators such as pull-through rates, average days to decision, rework rates, complaint response times, and post-settlement referral rates. These metrics serve as reliability signals that clients appreciate and regulators respect.

AI: A double-edged sword

Artificial intelligence is reshaping back offices and client interfaces. Technologies like optical character recognition and natural language processing are used to classify statements, calculate income, and flag anomalies. Generative AI is being employed to draft lender cover notes, highlight policy nuances, and personalise client communications.

"McKinsey estimates that generative AI could deliver hundreds of billions in annual value to global banking through productivity gains and enhanced decision-making," notes a technology analyst. "Mortgage workflows are squarely in scope."

However, AI also presents risks. It is crucial to keep humans in the loop for credit-critical judgments, use AI for preparation rather than final decisions, and adopt model governance practices. "Explainable outputs are essential," the analyst adds. "Clients need to understand the basis for income calculations, expense categorisation, and policy matches."

Sustainable and ethical lending

As values-driven decisions become more prevalent, particularly among younger cohorts, brokers have the opportunity to differentiate themselves through sustainable and ethical lending options. Green home loans and energy-upgrade financing are becoming mainstream, supported by initiatives from the Clean Energy Finance Corporation and major banks.

"Brokers who can translate sustainability features into lender policy and pricing advantages convert purpose into performance," says an industry commentator. "Mapping lenders’ green products and disclosing trade-offs clearly reinforces trust."

Next-gen clients and regulatory compliance

Millennial and Gen Z borrowers expect real-time status visibility, digital documents, and transparent communication about costs. They seek the convenience of self-service combined with expert escalation when needed. This requires brokers to offer client portals with live application tracking, secure messaging, and consent management.

"Trust is a function of predictability and clarity," says a customer experience specialist. "Plain-English disclosures of broker remuneration and lender rebates, along with service personalisation, are key."

In the regulatory arena, Australia’s Best Interests Duty and Design & Distribution Obligations make advice quality and documentation non-negotiable. Leading firms are leveraging compliance as a proof point, using decision logs, product comparison matrices, and client-file artefacts to serve clients, regulators, and the business simultaneously.

The competitive landscape and future outlook

As brokers capture more market share, lenders are responding with faster direct channels and retention strategies. Aggregators and franchise groups are investing in proprietary CRMs, workflow engines, and data layers to secure scale advantages. The competitive frontier is evolving into a platform game, where the ability to orchestrate lenders, data, and client experience while maintaining trust will be crucial.

In the coming years, trust is expected to become increasingly quantifiable, with verified client reviews, auditable advice trails, and standardised product-comparison artefacts becoming standard. For brokers, the strategy is clear: make trust your operating system, not just your slogan.