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EXCLUSIVE There is a significant opportunity for brokers to build lasting relationships with clients by gauging their personal values at initial meetings, according to new data.
The People & Planet Report 2024 – which has been authored by Broker Pulse, the lending insights division of Agile Market Intelligence and sponsored by Beyond Bank, P&N Bank and People First Bank – has revealed the importance of a lender’s social, community, and environmental priorities for brokers and their clients.
The report found that values like community and sustainability are gaining traction among borrowers, but many brokers still do not ask clients about their values in the mortgage process.
The consumer survey – fielded by Lightspeed Australia – received a usable sample of over 2,000 responses (including 680 who had an existing home loan).
It found that almost half (46 per cent) of Gen Z home owners highly value their lenders’ commitment to environmental and social programs, indicating that this is an important factor for borrowers when choosing a mortgage lender.
Moreover, more than four in 10 (44 per cent) consumers said they were willing to pay more for products and services that are environmentally sustainable or have a positive social impact and 71 per cent believe companies should focus on reducing their carbon footprint and improving their social impact over profit.
However, the broker survey – which was fielded by the Broker Pulse panel at Agile Market Intelligence – received a usable sample of 477 mortgage and finance brokers and revealed that two-fifths (43 per cent) of brokers had not asked clients about the importance of their values aligning with those of their lender.
Nearly a third (32 per cent) of the brokers surveyed signalled that they had no desire to assess their clients’ values, with older brokers less likely to consider asking these questions in their fact-find compared to younger brokers.
Out of these brokers, 17 per cent said they did not believe they needed to engage in these conversations, while 15 per cent said they had never considered doing so.
This highlights an opportunity for the broking community to bolster their offerings by integrating conversations about values into their client engagement strategies, the report suggested.
Commenting on these trends, Agile Market Intelligence’s commercial director Oliver Stofka said: “The report identifies gaps between the priorities of consumers and mortgage brokers, providing a roadmap for better alignment and education.
“By understanding and bridging these gaps, brokers can better serve their clients and build stronger and longer trust-based relationships.”
While many brokers indicated no inclination towards understanding their clients’ values, a quarter said they always initiated these conversations with their clients, while 22 per cent said they sometimes ask and 10 per cent said they rarely raise the issue.
Younger brokers were more likely to do so than older brokers. A quarter of brokers aged 18–24 said they always asked clients about their values, while a third (34 per cent) of brokers aged 25–34 did.
However, just under a quarter (24 per cent) of brokers aged between 35 and 44 and 21 per cent of those aged between 45 and 54 did.
Only one in 10 brokers aged between 18 and 24 and 8 per cent of brokers between 25 and 34 said they never asked clients about their values nor did they believe they needed to initiate these conversations.
This rose to nearly a fifth for older age groups, illustrating the growing awareness of social, community, and environmental issues among the younger generation of brokers.
Brokers were also asked how Australian mortgage lenders should approach environmental and social issues.
One female broker said that it is a delicate topic that not every client feels is important to discuss.
“One should keep feelings and emotions in mind while talking to customers who feel close to social and environmental topics,” she said.
A second female broker suggested that lenders should have comprehensive discussions with clients about their specific requests around social and environmental issues “with zero bias”.
To read the inaugural People & Planet Report 2024 in full, click here.
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