The advent of social media is an opportunity better suited to brokers than large banks, it has been claimed.

Financial services industry consultant and author Brett King has told delegates at the MFAA National Convention that brokers are well placed to take advantage of the advent of social media. He has claimed the growing ubiquity of social media will be a "significant disruption" to the financial services industry as customers gain control and choice through the availability of information and peer reviews of businesses.

King said Gen Y Australians will make up 42% of the workforce by 2020, and will be more influenced by peer recommendations than by branding or marketing. In the coming years, King has predicted the top internet search results for goods and services will be the ones customers recommend. As peer influence through social media increasingly dictates customer behaviour, King said brokers are in a unique position.

"Social media is about listening to what the customer is saying. Brokers are good at this. They have the advantage," King said.

King commented that Gen Y borrowers are often not as concerned with product features as with the experience of purchasing a product. He said lenders typically try to differentiate their brands based on product features, rather than focusing on the experience customers have when securing a home loan.

"People don't want a mortgage, they want a house," King said.

The focus in dealing with clients, King has claimed, should be in creating a positive buying experience and reducing the obstacles to home ownership rather than selling a product. He commented that brokers have the greater potential to do this than banks.

"Banks can't bridge that gap. You can because you have access to the customer in a different way. Make it simple and make those experiences great," King said.