Brodnicki also emphasised that the while the growing penetration into the product transfer market was welcome, this was also an easy target for big brands entering the market.
Speaking at the Financial Services Expo, Brodnicki said: “If your business is reliant on procuration fees, I really fear for your business because you’re reliant on too many external factors and I can’t see any of those being positive in the foreseeable future.
“So [you need] to widen your footprint in terms of how you generate leads. How you retain customers has got to improve, it can’t just be a review date in three years’ time, and the products you sell.
“I think our industry has got to widen its footprint in terms of the services and products we offer to customers and technology will facilitate that and offer more value.
“If you stay as a one-trick pony, if you don’t become a hybrid, you don’t offer customers what they want, when they want how they want it, then you haven’t really got a business I don’t believe,” he added.
Product transfers an easy target
Brodnicki noted that technology would help improve the application and advice process but also pointed out that it would enable new entrants to target certain parts of the market.
And he suggested that brokers had potentially just a couple of years to change until technology fully caught up to the market.
“Switches is an easy market for people to target when coming in externally when they’ve already got big brands, when they’ve got customer data and technology will help them target that,” he continued.
“So I think that’s where we should be watching.
“The rest is inevitable, it’s great for us and our customers, I can’t wait for it all to come, but it’s the rest of it which has been underestimated in, how it could affect our lead sources and customers that we’ve been used to getting in the way we have been for many years,” he added.
Brodnicki’s point was supported by Lloyds Banking Group director of strategic partnerships Esther Djikstra, who echoed concerns about how customers will react to new players and technologies.
“I agree with Peter that where the customer moves and customer behaviour will be very important but it’s very hard to predict,” Djikstra said.
She added that while Open Banking had seen a slow uptake so far, from those who were using it “once services are offered it can flip very fast”.