Integrated business models that combine several financial disciplines will ultimately achieve greater success, ING DIRECT’s Lisa Claes has claimed.
Speaking to The Adviser, the lender’s executive director, distribution, Lisa Claes said while any type of diversification is good for a financial business, those that are closely integrated with one another tend to grow faster.
“Integrated businesses tend to work very well,” she said. “In the case of financial planning and mortgage broking, businesses that hold both licences tend to outgrow their referral-based competitors.
“While there is no doubt these businesses are [in] a minority, our data shows that these businesses tend to outperform standalone businesses.
“Consumers are information-rich and time-poor. In addition, they are commercially savvy enough to expect the person who they give their financial details to to be able to provide them with a range of financial services that can cater to all of their needs.”
Ms Claes said while integrated models are obviously preferable, that doesn’t mean to say that standalone financial planners or mortgage brokers won’t survive and prosper.
“I believe all businesses have their place and merit,” she said, “but our data shows us that the more integrated financial disciplines are, the better they are.”