While HSBC’s move has been welcomed by few, Eddie believes the introduction of Alternative Business Structures will offset the effect of restricted panels by opening up the market and creating greater opportunities as new entrants move into the sector.
He says:
“The announcement has been met with a barrage of controversy, but if we take a longer term view, there will be new ways of doing business.
"The conventional lending streams will compete with new mortgage providers which will require legal services and want introducers to pass business their way.
"Collaboration across the disciplines will form a joined up service that will provide the customer with a more universal package.
“The increased competition will drive the market, forcing it to become much more streamlined. Technology will play a greater role in the processing of services and different pricing structures will replace traditional models, all of which will ultimately be good for the customer.
"They will pay for core legal services and not the administration that goes with it.
“The market is evolving and HSBC’s announcement is just a reflection of that. ABSs’ will change the game, but for ambitious, entrepreneurial companies there are clearly opportunities to be had.”
