Powered by MOMENTUM MEDIA
the adviser logo
Growth

Client strike rate ‘much higher’ with financial advice

by Francesca Krakue6 minute read

Taking the step to become qualified as a financial planner can make a significant difference to brokers’ client conversion rates, says one successful finance professional.

Speaking to The Adviser, Finance Made Easy director Tony Bice emphasised that since becoming qualified as a financial planner, he has found that his strike rate insofar as providing clients with risk insurance is much higher than it was previously.

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

“I looked at providing general advice and I found my strike rate was not that high because the onus is on the client to make the decision. When you go the extra step further and become a financial planner in your own right providing full advice, then you take control of the transaction, you control where it goes, your advice is what then becomes critical to assist the client in making their decision, and your strike rate is a hell of a lot higher insofar of conversion,” he said.

Mr Bice explained that mortgage brokers who have no experience or connection with financial planning and would like to assist their clients with risk insurance at the time of taking out a mortgage are only able to provide general advice.

Advertisement
Advertisement

“General advice simply means that they're highlighting the importance of risk insurance with the client, which is life insurance, total and permanent disability, critical illness and income protection, but because they're not a financial planner they're restricting their ability to give that advice and the client having to make the decision,” he elaborated.

“Your strike rate insofar as providing clients with the type of risk insurance that they need is much higher when you're in full control as a financial planner providing full advice, because you're able to steer the client around a lot more, you're able to give to give them the advice that they probably haven't thought of themselves, and you can really affirm the importance of your advice with the client and get them on the same page a lot earlier.

“If you leave it up to the client, you get a blank piece of paper and say ‘Tell me what you'd like’, those clients probably won't even know or they probably wouldn't see the importance of it, and it's probably not taken up in as many instances as it should.”

Further, Mr Bice stressed that, provided they have the resources to support them, it is indeed possible for brokers to be the jack of a number of trades.

“I think the days of a broker simply being a broker are numbered. I think if you adopt the attitude that you're just going to be a mortgage broker in today's market, I think that's fraught with danger,” he said.

Clients of the current market are very different to those of 10 years ago, according to Mr Bice.

“They're sourcing information online, they're looking at different opportunities, they're driving the transaction. So, if you've got a client that's much savvier and they've got the opportunity to do a lot of online work, it's going to make it more difficult for you to be able to win clients particularly when there's a saturation of so many mortgage brokers that are out there.

“The obvious thing you need to do is make yourself different from another mortgage broker. Differentiating yourself now will give you that unique selling opportunity to capture clients other than just being a mortgage broker, and that's critical.”

 

Client strike rate ‘much higher’ with financial advice
tonybice
TheAdviser logo
tonybice

JOIN THE DISCUSSION

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

MORE FROM THE ADVISER

daniel tuttlebee resimac asset fInance ta l27zun

Resimac takes controlling stake in Sonder

Resimac Asset Finance has expanded its acquisition stake in equipment finance business Sonder Equipment Finance...

READ MORE
asic ta 2

ASIC seeks ‘common-sense solutions’ to breach reporting

The Australian Securities & Investments Commission (ASIC) has committed to “improving” the operation of the...

READ MORE
andrew mills homestart ta htfetw

HomeStart drops graduate loan deposit to 2%

HomeStart Finance, a non-bank lender backed by the South Australian state government, has lowered the deposit hurdle...

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