The third-party channel is facing unprecedented change and The Adviser sat down with Loan Market’s Stephen Scahill to learn what the group is doing to stay ahead of the curve.
There has been immense change in the third-party channel in recent years. How will you help brokers tackle emerging challenges and adapt to a changing market?
This content is available exclusively to
The Adviser premium members.
Technology is critical. The online threat is a good example. Customers may choose to do much of their research prior to speaking with anyone. They may get to the point of product selection or even beyond without any engagement from a broker. However the data tells us that at some point in the process they will want either the reassurance or guidance of an expert. We are looking at ways whereby we can enable our brokers to support their customer no matter what stage of the process they are engaged.
We must also equip our brokers with a broader array of tools and determine what tools their customers need, so that our brokers can continue to meet, and exceed, their customers’ needs and expectations.
What is the biggest challenge facing brokers at the moment?
There are a number of challenges around regulation and the rate of change, but the biggest challenge is – how do we keep ahead of customers’ diverse and growing expectations?
Handing more control to the customer is key. The customer of the future will want to engage both online and offline, and each customer will have their own view as to how much of the process should be conducted digitally and how much they want to refer to the broker as the expert. As an aggregation group, we need to equip our brokers with the tools not only for them to use, but a suite of tools their customers can use to engage our brokers.
What is your focus in 2016?
2015 was a year of developing a number of key initiatives, with the focus for 2016 to ensure these initiatives are embedded in our brokers’ businesses.
We’ve developed a broker support program which offers data entry and deal preparation services for $30 a file. We’ve implemented new technology including a dedicated referrer app that provides your referral partners with status updates and back channel messaging on deal progress. We’ve teamed up with the world’s largest CRM company in Salesforce in order to provide our brokers a superior ongoing communication program with their customers.
Our training specialists and business development executives are now working with our brokers in identifying which tools best suit their business and how they should be applied.
Competition between aggregators is heating up. What can you offer brokers in 2016 and beyond?
Loan Market is a family-owned business which is reflected in the culture and values of the group. A key demonstration of this is that Loan Market contracts have no lock-ins. We do not have a fixed-term on our franchise agreements and if a broker chooses to leave, they retain the rights to their trail. I am at a loss as to why this isn’t more common in the industry. We don’t feel that it is healthy that a broker remains with an aggregator simply because they can’t get out of an agreement or because the trail book is too great to walk away from. Why should a broker ever forfeit a trail book to an aggregator when they wrote the loans? This also places the pressure on the aggregator to be constantly demonstrating value to their brokers.
A key point of difference is our ability to assist a business to grow. This takes many forms and is dependent upon the desires of the business owner. We’ve had great success in establishing many strong relationships with Australia’s largest real estate network Ray White.
Our digital strategy is designed to maximise our brokers’ businesses in three core areas – drive settlements from web leads, provide Loan Market brokers with an effective digital tool to market themselves and to educate the consumer.
What types of brokers do you aim to attract?
We are looking for brokers who want to grow their businesses. It’s core to our offering and an area where we have enjoyed great success. Opportunities abound for creation of referral relationships with Ray White. We generate leads corporately and by providing customised websites to our brokers. We also focus on developing capacity into our broker businesses. This may be through programs such as our broker support unit, greater use of technology, or simply by having our training team review processes and identify efficiencies.
Attracting brokers who share values of the existing team within Loan Market is also very important. Our brokers have a national Net Promoter Score of positive 85 and this is something we are very proud of and want to protect.
Stephen Scahill
chief operating officer,
Loan Market
