Personal Touch Packaging managing director Rob Jupp believes lenders should not be criticised for cutting satellite packagers out of their distribution channel.
Speaking at the Mortgage Business Expo, Jupp said he does not see a future for satellite packagers and considers that franchise partners are a much better solution. Satellite packagers repackage products for other firms.
But packager Atom chairman Vic Jannels said: “If a satellite packager does its job, they do have a future but a lot of lenders have closed their minds to them.”
Jupp told delegates that it is up to packagers to evolve. “You cannot sit there shuffling bits of paper around and expect to survive because you won’t.”
But he added that while the outlook may look bleak, he believes packagers will survive.
Jupp detailed five reasons why this will happen, including the importance of multi-lender cascading in the world of treating customers fairly, the power of distribution and continued growth in the non-conforming market.
He said PTP has 28 lenders on its panel but aims to increase this to 30.
Jupp said: “I think our finest time has been over the past nine to 10 weeks. It is a great industry and I intend to stand up here in 13 years still as a packager.”