Powered by MOMENTUM MEDIA
the adviser logo
Broker

Brokers will prevail due to customer preference

by Tas Bindi5 minute read
Competition of professionals

Despite a tumultuous year of regulatory and media scrutiny, the fact remains that customers are still choosing mortgage brokers, an industry executive has said.

Speaking with The Adviser, Michael Trencher, who left his role as head of broker distribution at Heritage Bank to launch Impact Consulting, a business coaching and consultancy practice for the mortgage and finance industry, said the most important thing to remember is that borrowers are still choosing brokers, despite the misinformation that has spread about the industry throughout the year.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

“In my mind, the customer choice always [overshadows] everything else… It all comes down to your customers to believe in mortgage brokers and to trust mortgage brokers – and they’re still using mortgage brokers,” he said.

“The broker channel [is] actually growing in terms of customer sentiment and customer preference, [which] signals to me that it’s a very strong industry.”

Advertisement
Advertisement

Mr Trencher added that it’s often forgotten that customers have the discretion to walk away from their mortgage broker during any stage of the relationship.

“They can pull out of it from the very first phone call or first interview right up until settlement. They have no obligation to stay with that mortgage broker. They can say, ‘thank you, I don’t want to use you anymore’,” he said.

“They can go directly to a bank and they’ve chosen to stay with the broker all the way through. To me, that’s really powerful.”   

Reflecting back and looking forward

The Impact Consulting director said that despite the events of the year – such as the the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry and, before it, the Productivity Commission’s review of competition in the Australian financial system – brokers have once again demonstrated their resilience to internal and external challenges, steadily growing their business.

As such, he suggested that brokers dedicate some time to reflect on their achievements this year to understand which strategies were (or were not) effective.

“I would suggest brokers look back on their successes this year… and see how those successes lined up against the business plan. Did they meet, exceed, or fall short in terms of their [goals]?” Mr Trencher said.

The next step is considering the impact of the initiatives, processes and strategies that didn’t work well.

“Brokers should be considering: why [certain things] didn’t work well, what went wrong, what the issues were. Was it a system issue? Was it a process issue? Was is a people issue? Was it a financial issue?” Mr Trencher said.

He added that financial outcomes are “obvious” but important to consider, particularly whether the activities that brokers had focused on in 2018 were revenue-generating or had they invested time in activities without capitalising on them.

“Did they focus too much on administration instead of revenue generation? These things can be assessed by simple things like customer surveys,” the director said.

“It’s all about giving customers the right experience so they refer you… word-of-mouth is just so important for [broking businesses].”

Once having identified where there are areas of improvement, Mr Trencher suggested creating an action plan for next year to ensure better success, which could include adopting platforms that promise to improve efficiency, diversifying into other areas of lending or financial services, recruiting staff, or boosting marketing efforts.

[Related: ]

Brokers will prevail due to customer preference
competition run brokers ta
TheAdviser logo
competition run brokers ta

Tas Bindi

Tas Bindi

AUTHOR

Tas Bindi is the features editor for The Adviser magazine. 

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

Anja Pannek CEO PLAN

Anja Pannek named MFAA CEO

The board of the Mortgage & Finance Association of Australia (MFAA) has confirmed that Anja Pannek will be the...

READ MORE
mike felton mfaa ta jdayl5

Aggregator heads reflect on Mike Felton’s legacy

Following on the news that Mike Felton is to retire next month and step down as chief executive of the Mortgage &...

READ MORE
melanie kiely afg ta mzh8zm

AFG non-executive director steps down from board

Australian Finance Group Ltd (AFG) has advised that Melanie Kiely will be stepping down from the AFG board to...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more