ING Direct has warned that brokers could become irrelevant as a distribution channel for the lender if they continue to send the majority of loans to the big four.

ING Direct currently sources the majority of its mortgage deals through brokers. However, the bank's executive director of delivery Lisa Claes has said that this arrangement would only continue so long as the broker channel remained relevant to the lender's customers.

Claes said brokers are in danger of losing their relevance both to lenders and consumers if they do not offer a range of choice in lenders, and said they were in danger of becoming "an early casualty" of the current competition amongst the major lenders. She bemoaned major bank market share, saying brokers continue to send deals to the banks despite the majors actively working against the third party channel.

"Brokers are sending most of their business to the big four banks, institutions that are likely to have a preference for their own branch distribution networks," she commented.

Claes said brokers are under threat not only from a dwindling competitive landscape, but from the ability of consumers to comparison shop and secure home loans online.

"The one true advantage of the broker offering is providing the consumer with an informed choice, backed by experience. The concern is choice is diminishing. Sure, competition in the current slowing home loan market is fierce but the number of players is getting less. Fewer players will give brokers fewer options and therefore less potential to add value for customers," she said.

Claes added that to thrive, the broker channel needs to maintain its unique value proposition to customers and to lenders. "Brokers cannot assume their success over the past 15 years will continue, and market concentration of home lending to the big four could be the biggest threat they face."