Login
ISCOVER
More brokers see an advice-based model as the key to future success as opposed to a transactional-based business.
A solid 63 per cent of the 723 respondents to a Mortgage Business’ straw poll said the broking industry’s future lay in tailored advice to clients based on relationships rather than one-off transactions.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Rather than involving a ‘fee for service’, or qualifying as a financial planner, advised-based broking refers to an approach that is centred on understanding a client’s overall financial needs rather than selling a particular product.
Kevin Lee, a Smartline franchisee and a strong proponent of advice-based broking, said the benefits of being client-focused were evident in the bottom line of his business.
His business has over 600 clients across Australia and internationally but “the amount of dollars we spend on advertising is zero – not one cent,” he said.
“Our phone rings constantly with new clients because we are relationship managers. We look after our customers as if they are family.”
Keith Marshall of Interactive Mortgage Solutions said providing borrowers with advice would help the broking industry achieve this aim.
“There’s enough negative press out there about brokers – just look at the recent report by CHOICE,” he said.
“It’s important for the broking industry to act professionally and thereby create a more professional reputation.”
--------------------------
STRAW POLL
Does the future success of the broking industry lie in providing advice?
Yes: 63%
No: 29%
Don’t know: 8%
Total votes: 723
