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By: Belinda Luc
Wealth management is an untapped resource for mortgage brokers, according to MFAA president Phil Naylor.
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While becoming a qualified financial planner takes a considerable amount of time and energy, some brokers are seeing the benefits in transitioning their offering from just mortgage products to financial advice.
According to Mr Naylor, almost 20 per cent of the MFAA’s members are financial planners and 15 per cent of MFAA members belong to the Financial Planning Association of Australia.
In addition, Mr Naylor said research by the MFAA has shown that around 30 per cent of its members have expressed interest in getting financial planning qualifications, as a growing number of customers are expecting more than mortgage related advice from their broker.
“I think in the past mortgage brokers have been a bit nervous about stepping out of their comfort zone – when times are good why should they?” he said.
“Obviously times have changed so we need to look at different avenues of satisfying the customer.”
Aussie chief executive officer Stephen Porges said diversification into wealth management is certainly an untapped resource.
“There is no doubt that financial planning is on our radar in the short term,” Mr Porges said.
“We specialise in retail and a range of products, so that your average consumer can come to us. Anything they can do with a bank, they can do with Aussie.”
Mr Porges said Aussie aims to be a “GP” of financial services.
“We have in the industry at the moment a situation where, for example, someone with a headache has to go to a brain surgeon when in reality they should go to a GP.”
Mortgage Choice chief executive Michael Russell said the brokerage had really started to embrace diversification as part of the extended business model.
“This is not to say we’re not focusing on mortgages, but you can’t always have this one little river running through your business – sometimes there may be a drought.”
