Leadership perspectives: from a management perspective, leadership is the key challenge going forward. To remain successful, organisations must continue to encourage leadership both from an industry perspective and from individuals within the organisation. This means having the courage to change business environments in the face of criticism and uncertainty.(PAYMENT SYSTEMS)(Company Profile)

Publication: Journal of Banking and Financial Services

Publication Date: 01-AUG-05

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COPYRIGHT 2005 Australian Institute of Banking and Finance

Over the past decade, there have been many examples of organisations changing the competitive landscape in their respective industries and the financial services sector has been no exception.

Within the financial services sector there are three areas that illustrate this sort of dramatic change: home loans, deposits and credit cards.

Home loans

Fifteen years ago, the home loan market was serviced primarily by banks and building societies. Variable rate home loans were standard and customers had to visit a branch manager to request a home loan. Competition existed in the industry, however, margins were healthy and customer churn was low.

Mortgage broking and originating was not common in Australia. While it had already become established in the United States, there was not much on offer locally in terms of fixed rate mortgages. Fortunately, a number of leaders had the vision and courage to bring these concepts into the Australian market--two well-known examples are Aussie Home Loans and Mortgage Choice.

In both instances, their foray into home loans was met with considerable resistance and scepticism. The banks resisted this change, generally challenging the sustainability of these new business models. After some time and further changes in market share, the industry passed through a tipping point and it responded by embracing the change. The rest is history and third-party mortgage brokers are now an established part of the landscape.

It is important to remember that the idea of mortgage broking was not new or revolutionary--it was a successful idea imported from another country. But despite challenges from established players, certain individuals had the enthusiasm to develop and promote...

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