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As mortgage brokers look for more ways to improve client retention, some brokers are finding that the answer is to offer a holistic approach to finance.
Mortgage brokers initially had a significant edge over individual lenders, offering clients a comparison of many lenders and then taking care of the paperwork and communications during the loan submission. With competition amongst brokers and lenders ever-present and with some lenders offering a greater range of financial products, many brokers are now offering a holistic financial service. In addition to home loan products, mortgage brokers now offer products covering risk protection, superannuation, leasing and commercial finance.
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By offering these additional products, brokers can become more of a ‘one-stop-shop’ for clients, becoming the first point of call for almost any finance query. This leads to an increase in client retention and it can generate further business for a brokerage.
If you decide to offer a more holistic financial planning approach there are two main avenues. Financial planning can be offered in-house within your brokerage or it can be outsourced to one or several other specialists. By offering financial planning in-house, you can expand your brand and retain more clients. It is important to note that if it’s offered in-house, processing the additional products requires specialised knowledge and an increased workload. For individual brokers at full capacity, outsourcing offers a way to add-value to their service while potentially increasing revenue through referral commissions.
To offer Financial Planning in Australia, you must meet the minimum training standards listed on the Australian Securities and Investments Commission's (ASIC) Training Register and hold, or be authorised as a representative of, an Australian Financial Services Licence (AFSL).
