Westpac's CEO, Brian Hartzer, has said that mortgage broking will be the next financial service that will come under heavy scrutiny from regulatory authorities in Australia. The Australian Securities and Investments Commission is also investigating whether banks are using robo-advisers to make money off of clients. Mr Hartzer's warning struck a chord with Aussie founder John Symond, who said extra compliance was already adding 30 minutes to the loan-processing time for his brokers. This would force banks to demonstrate that they have assessed the customer's ability to pay, that the product is suitable for that customer, and that the customer fully understands the terms of the loan.
Westpac's CEO, Brian Hartzer, has said that mortgage broking will be the next financial service that will come under heavy scrutiny from regulatory authorities in Australia. The Australian Securities and Investments Commission is also investigating whether banks are using robo-advisers to make money off of clients. This would force banks to demonstrate that they have assessed the customer's ability to pay, that the product is suitable for that customer, and that the customer fully understands the terms of the loan.