Banks and other lenders are the obvious starting point for individuals and businesses seeking finance. But if you go to a bank they will only sell their own products, which may or may not be competitive or suitable.

Financial regulation is changing to make it harder for organisations that appear to be offering independent advice, but are in reality only offering their own products. The regulation is in a state of flux and will not be settled for several years. So banks are fighting a rearguard action to enable them to continue to pressure loan customers into accepting their own insurance that they promote and make a lot of money from. Banks do not operate as insurers, so get commission without taking any underwriting risk.

With the financial crisis, banks are being cautious on how much they lend, the price they charge and who they will accept as a customer. So for any borrower who does not meet strict criteria, such as with a poor credit history, banks will either refuse a loan or want a high price. As the high street banks are now owned by a handful of companies, there is little difference between what they offer. Even if a potential borrower fits the criteria, then it is common sense to look at options. Borrowers can investigate online, but a better bet is an independent finance broker that has access to markets that will not deal direct with customers.

On insurance, for individuals and small businesses, banks only offer their own branded products that may or may be competitive on price. More worryingly, the insurance offered tends only to fit the `standard` customer and many customers do not fit. So it makes sense for them to look at alternative sources and the best is an independent broker with access to many insurers. Some independent finance brokers are also independent insurance brokers, but others only offer insurance from one or two companies.

A few years ago, pundits predicted that banks would dominate lending and insurance so much that few independent competitors would survive. This has turned out to be wrong as many banks have sold or plan to sell insurance subsidiaries. The same pundits also predicted that independent insurance and finance brokers would become historic memories, apart from a few servicing larger businesses and wealthy individuals.<br> <br> The independent market is stronger than ever. As the tide turns away from the banks as insurance providers, this sector will grow in the future. Most independents have a problem, getting good suitable staff. As advice is key to the service offered, independents need a much higher ratio of professional to back-up staff than lenders. Many experienced staff have or are about to retire. So independents need people who want a long-term career, rather than just a job.

Over the next few years, independent brokers will survive and thrive, so the sector offers good opportunities for people who want the challenge of matching customer to insurer or lender.