The head of the SME Association of Australia has urged brokers to consider the value proposition of diversifying into business lending as the home loan market faces stiff competition from online players.
Speaking to The Adviser, SMEA executive chairman and Succession Plus partner Craig West said brokers should look at how digital disruption has affected other industries as a guide to what could happen in the mortgage broking industry.
Mr West gave the example of video rental stores and book shops – two businesses that have effectively been replaced by online challengers.
“My big challenge to brokers is, how long before online players and digital disruptors come into the home loan space?” he said. “How long before an online lender can get access to your internet banking, see your monthly pay coming in, verify your income automatically, do the credit checks and get a property valuation?”
Online lenders have been gaining traction in the business lending space over the last 12 months as banks and brokers ignore the sector in favour of residential mortgages.
Mr West said brokers are well positioned to add value to Australian business operators.
“Most small business owners have affairs that are more complicated than a salary and wage earner with a group certificate and monthly income,” he said.
“There is an opportunity for brokers to specialise in that area and to come out and say ‘We understand small businesses, we understand your income, we understand what you do in terms of taxation, and we can make that work with a loan application’.”
Mr West is a strategic accountant who has over 20 years’ experience advising business owners.
His practice, Succession Plus, is the largest advisory business in Australia focused on business succession and exit planning and now has offices in Sydney, Melbourne, Adelaide and Perth and provides mentoring, advice and strategy for clients looking to prepare their business for a successful exit.
He is also the president of the Australian chapter of The Exit Planning Institute and is currently working on a PhD in business succession and exit planning.
Mr West will be speaking at the New Revenue Streams Boot Camp on 27 October. This exciting new event from The Adviser is presented in partnership with NAB Broker, Suncorp Bank and FAST.
Register today in order to secure your chance to hear Mr West and others speak. The boot camp is an exciting opportunity to discover how you can quickly and simply build your business to capture new revenue streams and rapidly expand your client base.
The intensive one-day boot camp will get brokers business fit and ready to launch new revenue streams in their business, generate referrals that spread like wildfire among SMEs and create simple marketing strategies to reach new clients that want more.
This is an essential event for all brokers that want to accelerate their business growth and capture more clients by offering more products to those that need your services.
The agenda is packed with a total of seven sessions, including an interactive broker panel where the industry’s top loan writers reveal the secrets to their diversification success.
After a full day of tips and tricks on how to double or even triple your volumes by capitalising on existing clients and boosting new business, brokers will get the chance to hear how to market, present and profit on new revenue streams from the leading product producers in Australian lending.
Networking drinks will wrap up a full day of workshops and give brokers the chance to discuss their next exciting business venture.
Tickets are strictly limited so get in quick to secure yours today! Click here to register now.
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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