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Brokers need to be tailoring their service to a client’s top priorities, according to broker business mentor Jason Back.
A recent report published by aggregator Connective identified a “disconnect” between what borrowers say they want in a broker and what brokers believe they want.
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The report – which included the findings of a survey of 321 brokers and 170 prospective borrowers around the top three perceived values that borrowers expect from their brokers, and what brokers believe borrowers expect from them – found that the top expectations for a borrower included:
- brokers sourcing the lowest interest rate;
- having loan options explained clearly;
- being provided with accurate information;
- having a broker understand their needs; and
- being provided with an easy application process.
On the other hand, the surveyed brokers believed that the top two priorities for borrowers would be turnaround times and keeping the clients updated on the progress of their application. However, these expectations were not in the top five priorities listed by borrowers.
Broker Essentials director Jason Back told The Adviser that this disconnect has occurred because brokers may not be tailoring their service offering to a client’s top priorities.
“We still think speed is one of the most critical parts of our industry and we try to match the client’s expectations around speed,” he said.
“But if you want to go fast, it results in errors, and consequently heightened anxiety.”
Instead, Mr Back suggested that brokers could conduct a value-based conversation by asking clients what part of the mortgages process is important to them.
“Is it speed, price, or convenience, or is it having the broker available to answer questions at any time? Would they prefer digital mortgages or would paper-based systems be easier?” Mr Back said.
“We’ve got to ask more questions. When clients respond, we can then dial up or down our service proposition based on what’s important to them.”
Furthermore, by being curious, asking questions, and empathising with the client, brokers could adopt best practices to suit the clients’ requirements.
For example, while a first home buyer would be apprehensive about the mortgage process and transferring funds to various accounts because of lack of prior experience, business owners would require brokers to provide advice on cash flow and inventory, and be able to read their financial statements and profit and loss statements on their balance sheets.
Managing clients’ expectations also forms a critical part of the relationship, particularly around the speed of the loan approvals process, Mr Back emphasised.
“If a client wants loan approval within a certain period and you know that’s not possible, you need to communicate that you can’t guarantee it but assure them that you will do your best,” he said.
Establishing a timeline for the loan approvals process and communicating its progress with clients could help ease the anxiety, he said.
“Again, most brokers don’t do that because we’re trying to get through to a solution, without understanding that the solution is only one part of the customer journey,” Mr Back said.
Research by Momentum Intelligence has echoed that communication forms a key element of a broker’s value proposition, with the 2021 Consumer Access to Mortgages report finding that 85 per cent of the borrowers surveyed who engaged a broker rated the communication well, compared with 69 per cent at proprietary channels.
However, frustrations over turnaround times have resulted in a decline in consumer satisfaction (down from 88 per cent in 2020 to 72 per cent in 2021) and trust (down from 89 per cent in 2020 to around 83 per cent in 2021).
Find out more from Jason Back and how brokers can boost efficiencies and embed productive processes into their business at The Adviser’s Business Accelerator Program 2022. Click here to secure your spot.
[Related: Culture is king for aggregator satisfaction]
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