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White label lending - Building client bonds
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White label lending - Building client bonds

Staff Reporter 6 minute read

Client retention and minimising the threat of channel conflict is a key benefit of writing white label products

FOR ANY broker, being able to build strong relationships and retain a client for life are essential to success.

But even the best can run up against channel conflict issues and bank poaching.

A significant advantage of using white label products is that the bank isn’t directly involved; you, as the broker, are the number one contact.

Borrowers with a white label product are less likely to walk into a bank branch and emerge with a refinanced loan.

PROTECTION FROM POACHING
One of the key benefits of white labelling, according to Brett Halliwell, general manager, Advantedge Distribution, is being able to position yourself as the primary point of  contact.

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By eliminating the visibility of the banks during the loan process, brokers are able to take more control, says Andrew Russell, general manager for product and distribution at Mortgage Choice

“It allows the broker full control of the relationship,” he says.

Joe Sirianni, executive director of Smartline, believes that because Smartline products are branded accordingly, clients are more likely to return or to contact the broker.

“Our loans are branded as Smartline, so if the customer wants to do something, in the first instance they need to come back to us,” he says.

“Therefore we have greater control of the relationship with the customer.”

George Agoratsios, director of Build Wealth Finance, also uses white labelling as an opportunity to communicate his strengths as a broker.

“I emphasise the fact that I’m the ‘go to’ person, so whatever the issue – if indeed there is one – they come back to me,” he says.

“The great thing is borrowers can’t really walk into a branch with a white label loan, so they come back to the broker.”

White labelling thus greatly reduces channel conflict.

“If a broker is selling a FASTLend product, they know that we’re not going to be marketing to their clients,” says FAST’s acting chief executive, David O’Toole. “There’s no channel conflict that may arise; if anything, we just help brokers market to their ownclients.”

“With white labelling, your client is definitely much safer for much longer,” adds Peter Gwynne, owner of Financing Property.

If client retention is key to the success of a broker, then offering white label mortgage products could be integral to ensuring the longevity of the business.

YOUR CLIENT BASE
When a broker decides to offer a white label product, they expand their panel, increasing their appeal to borrowers who increasingly are looking for options and alternatives.

This, according to PLAN’s CEO, Trevor Scott, is the first step to attracting more clients.

Brokers are in a unique position in that they can offer a product range to borrowers, and present alternatives that are unavailable at the banks.

Stephen Moore, CEO of Choice, says brokers should remember why clients came to them in the first place: “You need to remember that clients don’t generally go to see a broker because they want a loan with, for example, the Commonwealth Bank,” he says. “They go to a broker because they want guidance on the best lender to suit their circumstances.”

White label loans can be packaged and sold as a more ‘exclusive’ offering, increasing the likelihood of clients’ having a positive and memorable experience.
Once a client has a white label loan, it’s much easier to ensure they become a long-term client.
“White label mortgages allow brokers to have a closer relationship with their customers as they have a far more direct relationship throughout the mortgage process,” says Brett Halliwell, general manager Advantedge Distribution.
“This can translate into better communication and overall servicing – which will better position the broker to secure repeat and referred business.”

Building client bonds

 

Client retention and minimising the threat of channel conflict is a key benefit of writing white label products

FOR ANY broker, being able to build strong relationships and retain a client for life are essential to success.

But even the best can run up against channel conflict issues and bank poaching.

A significant advantage of using white label products is that the bank isn’t directly involved; you, as the broker, are the number one contact.

Borrowers with a white label product are less likely to walk into a bank branch and emerge with a refinanced loan.

 

Protection from poaching

One of the key benefits of white labelling, according to Brett Halliwell, general manager, Advantedge Distribution, is being able to position yourself as the primary point of  contact.

By eliminating the visibility of the banks during the loan process, brokers are able to take more control, says Andrew Russell, general manager for product and distribution at Mortgage Choice

“It allows the broker full control of the relationship,” he says.

Joe Sirianni, executive director of Smartline, believes that because Smartline products are branded accordingly, clients are more likely to return or to contact the broker.

“Our loans are branded as Smartline, so if the customer wants to do something, in the first instance they need to come back to us,” he says. “Therefore we have greater control of the relationship with the customer.”

George Agoratsios, director of Build Wealth Finance, also uses white labelling as an opportunity to communicate his strengths as a broker.

“I emphasise the fact that I’m the ‘go to’ person, so whatever the issue – if indeed there is one – they come back to me,” he says.

“The great thing is borrowers can’t really walk into a branch with a white label loan, so they come back to the broker.”

White labelling thus greatly reduces channel conflict.

“If a broker is selling a FASTLend product, they know that we’re not going to be marketing to their clients,” says FAST’s acting chief executive, David O’Toole. “There’s
no channel conflict that may arise; if anything, we just help brokers market to their ownclients.”

“With white labelling, your client is definitely much safer for much longer,” adds Peter Gwynne, owner of Financing Property.

If client retention is key to the success of a broker, then offering white label mortgage products could be integral to ensuring the longevity of the business.

 

Your client base

When a broker decides to offer a white label product, they expand their panel, increasing their appeal to borrowers who increasingly are looking for options and alternatives.

This, according to PLAN’s CEO, Trevor Scott, is the first step to attracting more clients.

Brokers are in a unique position in that they can offer a product range to borrowers, and present alternatives that are unavailable at the banks.

Stephen Moore, CEO of Choice, says brokers should remember why clients came to them in the first place: “You need to remember that clients don’t generally go to see a broker because they want a loan with, for example, the Commonwealth Bank,” he says. “They go to a broker because they want guidance on the best lender to suit their circumstances.”

White label loans can be packaged and sold as a more ‘exclusive’ offering, increasing the likelihood of clients’ having a positive and memorable experience.

Once a client has a white label loan, it’s much easier to ensure they become a long-term client.

“White label mortgages allow brokers to have a closer relationship with their customers as they have a far more direct relationship throughout the mortgage process,” says Brett Halliwell, general manager Advantedge Distribution.

“This can translate into better communication and overall servicing – which will better position the broker to secure repeat and referred business.”

White label lending - Building client bonds
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