The future of mortgage broking: From policy to practice — Why Open Banking matters for every broker

Open Banking isn’t just changing how we think about finance – it’s transforming the mortgage broking industry from the ground up. With brokers now writing 76.8 per cent of all new home loans according to Mortgage and Finance Association of Australia (MFAA) data, this transformation has never been more significant for Australia’s lending landscape.

Speaking with Anja Pannek, CEO of MFAA, and Naveen Ahluwalia, Executive – Policy and Legal, we deep dive into their insights on how Open Banking is transforming the broker-client relationship and what this means for the future of home lending.

Open Banking: From policy to practice

The MFAA has been at the forefront of Open Banking policy development for over six years, completing 15 submissions to ensure the Consumer Data Right (CDR) framework works for brokers and their clients. This extensive engagement demonstrates the association’s commitment to shaping policy that benefits both brokers and consumers. As Anja explains, “Very early on, we recognised the potential for consumer data to transform the mortgage broker client relationship.”

This isn’t just about technology – it’s about reimagining how brokers serve their clients. Anja emphasises how the association successfully advocated for mortgage brokers to be included as trusted advisors within the CDR framework, recognising the unique relationship brokers have with their clients. This designation is crucial because it allows brokers to access and utilise client data in ways that benefit the consumer while maintaining the high standards of trust and professionalism the industry is known for.

The momentum is building

Naveen highlights that brokers are front and centre when it comes to Open Banking adoption. The investment flowing into Open Banking solutions for brokers is substantial, with home lending rapidly becoming the single most developing use case for the technology. This shift represents a fundamental change in how the industry operates, moving from unsecure methods of collection information to streamlined digital and secure workflows.

“What we’re seeing now is developments not just in the application process, but also in the refinancing and repricing space,” says Naveen. “This means brokers can be more responsive in monitoring the environment to act in their clients’ best interests.”

According to Naveen, the refinancing and repricing capabilities are particularly significant because they allow brokers to maintain ongoing relationships with clients rather than just transactional interactions. This positions brokers as long-term financial partners who can proactively identify opportunities for clients to improve their financial position.

Making Open Banking the standard

Can Open Banking become the standard in loan applications? Naveen believes absolutely. The benefits are clear and compelling for both brokers and their clients:

• Faster information gathering: Brokers can collect client data more seamlessly, reducing the time spent on administrative tasks
• More informed conversations: Real-time financial data enables better advice and more personalised recommendations
• Reduced rework: Accurate data first time means less back-and-forth, improving client experience and broker efficiency
• Better client outcomes: Brokers can monitor and respond to client needs proactively, identifying opportunities for refinancing or restructuring

Anja notes that the federal government has recognised mortgage lending as a priority use case, signalling continued support for Open Banking development in this space. This government backing provides confidence that the regulatory environment will continue to evolve in favour of Open Banking adoption, making it a safe investment for brokers and their businesses.

Overcoming the friction points

One of the biggest challenges has been consent management, but Naveen explains that significant improvements have been made through Treasury’s responsive approach to industry feedback. The government body has been proactive in addressing broker and consumer concerns, implementing practical changes that make the system more user-friendly. Recent changes include:

• Bundled consents: Clients can provide multiple consents in one action, reducing repetitive steps
• Simplified notifications: Reduced requirements for 90-day notifications, minimising notification fatigue
• Less ‘cognitive load’: Streamlined information requirements for consumers, making consent decisions clearer and easier

As Naveen notes, “Consent is where trust is built or lost,” and these improvements are making the process more user-friendly while maintaining security. According to Naveen, the focus on reducing cognitive load – that is, making processes easier to understand and navigate – is particularly important because it helps consumers make informed decisions without feeling overwhelmed by complex technical information.

The path forward: Education and partnership

Anja outlines how the MFAA is supporting brokers through this transition across three key pillars, recognising that successful technology adoption requires more than just having the right tools – it requires comprehensive support and industry collaboration:

1. Policy advocacy: Ensuring the regulatory framework enables brokers to operate effectively as trusted advisors while maintaining consumer protections
2. Education: Maintaining focus on the importance and benefits of Open Banking through conferences, webinars, and industry publications
3. Partnership: Working closely with fintechs, aggregators, and early adopters to develop practical solutions and share success stories

According to Anja, the education component is particularly crucial, with Open Banking being a key feature at recent MFAA conferences and planned as a major focus at the MFAA National Conference in July 2025. This ongoing education helps brokers understand not just how to use the technology, but why it matters for their business and their clients.

A vision for the future

Looking ahead, Anja’s vision is clear: Open Banking will simply become how all mortgage brokers work with their clients. This technology will enable brokers to move beyond transactions to build deeper, more meaningful relationships with their clients. The shift represents a fundamental evolution in the industry – from being deal-focused to being relationship-focused.

“This is an industry that’s moved beyond the transaction,” Anya explains. “This is about how a broker develops and really strengthens and deepens the relationship they have with their client.”

In this future, according to Anja, brokers will be able to work with clients not just at key moments like home purchases, but throughout their entire property and wealth-building journey. The friction and labour-intensive aspects of current processes will transition to a safer, more secure, and more efficient way of working. This ongoing engagement model means brokers can provide value at every stage of their clients’ financial journey, from first home purchase through to investment properties and refinancing opportunities.

Now’s the moment: Why brokers can’t ignore Open Banking

For brokers who haven’t yet explored Open Banking, Anja’s advice is simple: start now. The technology landscape is moving rapidly, and early adopters are already seeing competitive advantages in terms of client engagement and operational efficiency.

Here’s how to begin:

• Understand your aggregator’s offering: Start by exploring what Open Banking solutions your aggregator currently provides or is developing. Many aggregators are investing heavily in these capabilities
• Partner with fintechs: Investigate available fintech solutions that integrate with your existing systems and workflows
• Start small: Begin with specific use cases like expense verification or digital income verification rather than trying to transform everything at once
• Embrace the security: Remember that Open Banking provides a safer and more secure way to handle client data, with built-in protections and audit trails

The technology is here, the guardrails are in place, and the industry is moving quickly. As Anja puts it, “The sooner brokers start on this journey, the more competitive advantage they’ll have in terms of client engagement and offering.” According to Anja, the key is to approach adoption strategically, focusing on areas where Open Banking can deliver immediate value while building towards more comprehensive integration.

The bottom line

Open Banking isn’t just about better technology – it’s about better relationships. It’s about giving brokers the tools they need to provide exceptional service while maintaining the trust and human connection that makes the broker-client relationship so valuable.

The future of mortgage broking is here, and it’s powered by Open Banking. The question isn’t whether to adopt this technology, but how quickly you can get started.