Case study: Tony Bice, Finance Made Easy

More income streams; clients are a lot ‘stickier’ – in other words, they are less likely to go elsewhere with their loan as I hold the full relationship; greater credibility with clients, it gives me a competitive advantage over a typical mortgage broker; and a closer association with professional referral sources – they know their client is in good hands for all areas of the transaction and not just their home loan.

Do you suspect there will be an increased number of brokers looking to make the convergence into financial planning?

I think the numbers are growing as more and more new and young brokers enter the industry. I see these young guys as ones who will embrace extra income streams and will be less likely to baulk at the barriers to entry compared to the older-style mortgage brokers who may be set in their ways.

I also believe that client expectations are changing. Clients expect a superior level of service from a professional and are more savvy than they were even five years ago, so I believe that the new mortgage brokers can accommodate all the financial requirements that the client needs – particularly given that these two services go hand in hand.

What are some of the biggest challenges you have operating your business in this way?

Continuing changes to financial planning legislation and keeping up with compliance; wearing two hats as a mortgage broker and financial planner and trying to balance clients’ expectations of getting both transitions over the line simultaneously. When they get the keys, I need to ensure that they have cover in place – generally funded through super for affordability.

What would you say to those who believe that the role of a broker and financial planner cannot be done effectively by one person?

Rubbish! I've been doing financial planning for six or seven years and I'm no rocket scientist. If you have the right people in your team and you have a solid, fool-proof process, then there is absolutely no reason why you can’t wear both hats. It makes for a busy day and it comes with its challenges, but it's certainly doable. I couldn't see myself as just a mortgage broker any more, particularly given the extra clients I've been able to attract, the extra remuneration I now derive and the extra value that financial planning has added to my business.

What has been the feedback from your clients since you decided to converge both roles?

Great. When I'm trying to win a client that has approached me via the internet or phone, I know only too well that they have also sent an email or contacted a few other brokers. The minute I mention that I'm also a financial planner as well as a mortgage broker, the first thing they generally say is: “Fantastic!” It gives them the extra feeling of dealing with a true professional – they feel like they are in good hands and it just adds so much more to your credibility.

For brokers looking to become a planner, what should be their first steps?

Put your head down and obtain financial planning qualifications. Once you've done that, start talking to relevant people – starting with people in the mortgage industry who have done it. I go back to when I first started, and it was daunting. It will still be daunting, but if you learn from others who have done it successfully, then you are less likely to make mistakes; particularly when you need to remember that while you’re changing your model to incorporate financial planning, the home loans still need to be written.

As things unfold, you then need to build each step into your model – getting on board with a dealership group, getting your accreditations set, forming relationships with relevant BDMs from the insurance companies. I’d encourage bringing in some expertise on the financial planning side to assist you to bed down the appropriate processes within your business, such as a parraplanner, in a similar fashion to being a mortgage broker and having a specialist loan processor assisting you.