Google’s caused a stir last week after it announced plans to enter the mortgage comparison market, having entering into a partnership with Avelo Trigold.
Tech experts were quick to warn brokers that they could not ignore Google’s encroaching presence in their industry.
Finance & Technology Research Centre director Ian McKenna says: “If an adviser can’t think of how to adapt to add the level of value in a world where Google exists, their future is bleak.
“Start with the assumption that consumers will have looked at Google or a similar source and bring that into the discussion. Work out where you are going to add value over and above what they can get online.
“Google is not going to go away and this sums up the bigger challenge financial intermediaries of all kinds face over the next 10 years. If an adviser can’t think of how to adapt to add the level of value in a world where Google exists, their future is bleak.”
“Trying to swim against the tsunami that is Google will just engulf you if you do not.”
But while this latest venture from Google has all the hallmarks of posing a threat to existing market participants, digital marketing agency Greenlight hit back with an analysis of Google’s past performance in the financial services sector.
Research from Greenlight shows Google’s entry into the credit card and car insurance sector had less than a 1 per cent impact on what people clicked on when they searched Google for those products.
According to Greenlight chief operating officer Andreas Pouros, the initial evidence suggests the same to be true for mortgages since Google is also not yet a brand consumers immediately associate with finance-related services