Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Brokers divided on cross selling

Staff Reporter 4 minute read

Cross selling may meet resistance from the broking industry despite commission reductions.

Brokers are now under pressure from banks to cross sell products such as transactional accounts, insurance and credit cards to ensure maximum commissions are paid.

However only 56 per cent of respondents to a recent Mortgage Business straw poll believed brokers’ futures’ lay in cross selling. 

According to Alex Moulieris, general manager of broker platforms at Challenger Mortgage Management, some brokers will find it hard to adapt to cross selling.

Advertisement
Advertisement

“Brokers approach a mortgage with a lot of certainty because if they get asked questions they can answer them – they live and breathe mortgages,” he said. “When it comes to secondary products, some will find it more difficult to make a recommendation to a client.”

While cross selling has some merits, Mr Moulieris said the channel should look to transactional products to support their offering, rather than full advice style products like life insurance.

“I think we need to at all times maintain our specialist role. We are mortgage specialists; we can open up a transactional account because it links in with our core offering, but with other products we need to be careful,” he said.

NAB, St George and CBA are among the first banks to emphasise the importance of cross selling as broker commissions are restructured.

Matt Lawler, regional general manager of NAB Broker, said brokers that don’t adapt to current changing market conditions face the prospect of lower revenue or increased workload.

PROMOTED CONTENT


“In an environment where margins have come down 20-25 per cent it would immediately follow that you have to work 20-25 per cent harder to get the same revenue,” he said.

“If you think about brokers as business people in an environment where margins are compressed, they have three choices: the first is they can work harder… the second is to accept revenue will be lower, and the third is to actually look for opportunity in their client base,” said Mr Lawler.

Brokers divided on cross selling
default
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

default

 

more from the adviser
Michael Russell MoneyQuest Brokerage head calls out ‘unacceptable’ turnaround delays

It is “unacceptable” that turnaround times in branches can be...

gentlmen handshake Ex-Time Home Loans director partners with AFG

The aggregator has partnered with former Time Home Loans director...

farmer ta 34% of farmers eyeing raised business investment

Roughly one-third of Australian farmers expect to increase their ...