Industry pioneer Mark Bouris has spoken out about the challenges brokers face in the current market and how they need to change their business models to survive.
In an interview with The Adviser ahead of his speaker engagement at the Better Business Summit next month, the YBR chairman said brokers need to work out who their customers are and what they really want form their mortgage professional.
“This is a challenging period,” Mr Bouris said. “Brokers are going to have to change the way they think and they are going to have to look for alternative sources of revenue as well.
“You need to consider becoming a financial planner. Financial planners do mortgages. Mortgage brokers are going to need to consider doing financial planning.”
Mr Bouris said the “smart” brokers will take action while the others will ultimately get left behind if they fail to keep growing their businesses in today’s increasingly competitive market.
“The ones who stay are the ones who will work out how to grow their books as well as finding new revenue sources, getting into advice, either doing to themselves or forming a partnership with someone else,” he said.
“The game is about a good-sized book, with flow that comes in at a greater rate than the decline in your book value.
“That’s hard when the larger market starts to recede. So you need to work twice as hard and come out with a killer message. Being a broker is all about maintaining your book, maintaining the margin on your book, and if you can’t maintain the margin on your book then you need to get more business.”
With recent regulatory action making it harder for Australians to borrow the same amount of money, brokers need to consider how they can offer alternative solutions, Mr Bouris said, such as helping clients save more money through investment products.
Brokers can catch Mr Bouris on stage at the The Adviser’s Better Business Summit, which kicks off next month.
In conjunction with The Adviser’s Better Business Awards, the award-winning event will be held in Brisbane on 18 February, Melbourne on 25 February, Sydney on 3 March, Adelaide on 11 March and Perth on 17 March.
[Related: YBR recognises top brokers]
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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