Banks have not had a good year in 2019; the Royal Commission brought to the forefront something we already knew—that banks do not act in peoples’ interest, and can act unethically and even illegally.  The bank regulators have been found guilty of colluding with the very institutions they exist to regulate, and at the expense of consumers and businesses.

Brokers, however, are very client-centric and focussed on service to their customers.  Without this customer service expertise, the brokers would go out of business very quickly. 

Banks would love to act as ‘wholesalers’ rather than retailers and have brokers discover what the clients want and match their needs to the financial institution that best meets their needs.  Instead, banks have had to deal directly with the old-fashioned clients who still believe banks want to have a personal and close relationship with them—the way it used to be before deregulation decades ago.

Old-fashioned clients do not understand that all banks are not created equal and that they chase different types of clients at various times of the year.  Instead, they believe that if they go to their bank seeking a business loan or a mortgage and their bank is not competitive with that product, they will be told to go to another lender down the road. unfortunately, this is never the case.

If we needed even more evidence that banks do not want to deal directly with people or businesses, banks closed nearly 300 branches in 2019 according to APRA. This is 5.3 per cent of all outlets.  The year before, banks closed 201 branches or 3.6 per cent of all outlets.

Starting a relationship with an experienced and professional brokerage, like Master Builders Finance will mean that your credit advisor will be able to advise you across most banks, lenders and non-bank financial institutions, and ensure you are able to achieve your desired outcome while ensuring you are not setting yourself up for financial hardship.  Your credit advisor will always provide you a full breakdown of the costs and the benefit you will receive with the financial transaction before you must make the decision to proceed or not.


Harry Pontikis – Director

Master Builders Financial Services

Chocolate Money t/a Master Builders Financial Services

Australian Credit License – 387277

Please note: This article is general in nature and not specific advice as your situation has not been taken into consideration. Contact Master Builders for specific advice on 1300 137 539.