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Best Interest Duty (BID) has given brokers a huge growth opportunity by tasking them to learn more about their customers.
Most brokers already operate businesses that are aligned to the interests of their customers. Those who don’t won’t last long in an industry that continues to evolve.
When it comes to complying with BID, there are three parts to a broker’s interaction with a customer that are essential: gathering information about them, making an individual assessment for them and presenting information and recommendations to them.
Best interest duty should ultimately shape the interaction that brokers have with their customers. Gaining a deeper understanding of your customers and what they want is the cornerstone of a successful mortgage brokerage – and a compliant one.
Building relationships early in the process
At Mortgage Advice Bureau (MAB), we take a deeper look at the home buying experience. Capturing leads early and nurturing them is a core part of our service and just one of the things that sets us apart.
We form a relationship with our customers earlier in the research process and use data profiling and nurture technology to build a long-term pipeline of opportunities for the future. For us, understanding what is in the best interests of a customer begins up to two years before they are even ready to buy a property.
We know that one of the biggest hurdles to home ownership is not the borrowing stage but the months and years of saving for a deposit. It is during this critical stage that prospective home buyers are introduced to MAB. We work with them on their journey towards home ownership. This is where we can really add value and ultimately ensure that every decision our customers make along the road is in their best interests.
Our aim is to capture and nurture our customers before they actively commence their search for their first home and become visible to the wider market, and then retain them as a customer for their lifetime using the same techniques. This can be achieved by capturing and engaging potential customers far earlier in their research process.
This process naturally lends itself to a far broader product suite including home insurance, protection, conveyancing, and asset finance.
One area of focus for us is mortgage protection insurance. In the UK, 45% of mortgages are sold with protection. This is just one example of a product that could be in the best interests of your customers if it is made available to them.
MAB’s customer nurture journeys, embedded into our technology platform, enable our partner firms to engage with customers early and cost effectively, providing them with tools and information until they are ready to engage with a broker online, over the phone, or face to face.
Our platform MABrefer enables a controlled central management of opportunities and referrals, which captures data and automatically generates potential cross-sale opportunities.
For us, BID provides far more than a competitive advantage for the mortgage broking industry. It presents a highly compelling opportunity for firms to differentiate within the broker channel.
BID forces us to learn more about our customers. Armed with this information, brokers are far better positioned to offer products at various stages of the home buying journey.
Learn more about Mortgage Advice Bureau by downloading our Annual Insight Report. “Leads, employees and profit: Building a brokerage worth buying.”
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