The head of a major mortgage aggregator has stressed the importance of using customer data to build trust with clients and lenders.
Speaking at the Choice Aggregation annual business development days, CEO Stephen Moore stressed the importance for brokers to have strong, in-depth conversations with their clients to obtain a full picture of their needs and thereby deliver the best possible service and outcome for customers.
“Brokers are in a unique position,” Mr Moore said. “Typically, they are closer to their customers than anyone else in the lending market. Not only do they know about ‘hard’ data — e.g. their financial situation — but also ‘soft’ data, which can be even more important, including things like clients’ aspirations, their family situation, what is important to them and so on. This combination of hard and soft client data is invaluable. It is the new black.”
In addition to building strong relationships with clients and taking the time to have thorough conversations, Mr Moore, who is also the chair of LIXI, the industry data standards board, said that collection of the right client data, ongoing data management and security have never been more important.
“A comprehensive approach to data management can support brokers to deliver the highest-quality applications as well as build more trust with both their customers and lenders.”
Mr Moore’s comments come after Australia’s major banks recently released a new interview guide for brokers to use when introducing loans to lenders, aimed at encouraging more consistency in the collection of expenses data.
The aggregation chief also discussed the importance of “know and show” when it comes to verifying a customer’s data, particularly around income and expenses.
“Ask those extra questions, make file notes for everything and have clients sign off on their details,” the CEO said.
On comprehensive credit reporting and open banking, Mr Moore said he believes that these will have an overall positive impact for customers.
“A more holistic picture of a customer’s credit situation will assist to tailor credit to their individual circumstances. It also allows clients to proactively address any credit concerns and, with client permission, brokers have a key role to play here, too.
“We expect open banking to further drive lending competition, which will be a positive for customers and brokers. Coupled with their existing knowledge of clients’ circumstances, brokers will be in the box seat to provide valuable advice to clients in a more efficient way.”
[Related: Major lenders produce broker interview guide]
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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