The broker of the future may need to consider having a dual diploma that will enable them to offer financial advice, according to one industry veteran.
Speaking to The Adviser, senior broker at Finance Brokers of Tasmania (FBT) Lance Cure claimed that “good brokers of the future” would also offer financial advice.
Mr Cure said that he has charged fees for his broking services since joining the industry in the 1980s, and he believes clients would be more willing to pay a fee if brokers also offered financial advice.
“Going forward, the finance broker of the future will probably need to consider having a dual diploma, in that they have a diploma in finance broking or mortgage lending and a diploma in financial planning,” Mr Cure said.
“Given that [brokers have] got that amount of knowledge, expertise and ability to advise, clients would be miles better off, and in most cases, I’ll be surprised if they didn’t see the value of a fee-for-service model with a broker of that much knowledge and ability.”
Mr Cure encouraged new or aspiring brokers to consider receiving accreditation for both credit and financial advice.
“I would seriously suggest that once brokers have gotten enough experience to head out on their own and do their own thing, [they] should really be considering the dual-diploma scenario, whereby they’re armed with a financial planning diploma,” the senior broker continued.
“That will enable them to offer their clients a more diverse range of services, whether it be SMSF or investment property loans, [and] it would give them more involvement in the journey and the destination. That’s what I think the good brokers of the future are going to be; they’re going to be a lot more involved with their clients.”
The Launceston-based broker, who holds over 40 years of experience in the industry, added that with brokers increasingly required to gather more information about their clients, offering financial advice would be a natural step forward.
“We now have to find out a whole heap about our clients, we’ve got that information, so we should be able to do a lot more [with it], and that sets us apart from just the credit representative and other loan writers,” Mr Cure said.
However, Mr Cure believes that while brokers should be dual-skilled, the two industries should remain independent and have separate qualifications, noting that there have been suggestions that financial planners could provide customers with credit advice under the same license.
“I think you need to keep them separate. I don’t think the industries can be easily administered under one banner, but it may happen,” Mr Cure said.
New Broker Academy 2018
Diversification and preparing for the future will be key themes at The Adviser’s New Broker Academy, run in partnership with Heritage Bank.
The free-to-attend event aims to equip new brokers with the knowledge, skills and networks needed to succeed and future-proof their career.
The Adviser’s New Broker Academy 2018 will run across five states starting next week. It will be held at the following venues and dates:
Places are limited, so secure your spot for New Broker Academy 2018 now or refer a colleague, peer or friend who would benefit.
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