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Mortgage brokers with strong referral relationships with accountants have traditionally done well. But accounting practices are now increasingly turning their attention to the third-party channel.
For some accountants, building out a finance offering is simply a new revenue stream. They see the potential revenue and are eager to set up a mortgage broking business.
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For others, like Matt Connell, who runs NSW-based accounting and financial planning firm Tenth Avenue, client demand is key.
“A lot of accountants don’t see a massive pool of work from lending. But we saw an opportunity to provide that holistic solution. It was about what our clients needed, rather than chasing growth,” he explained.
When it comes to communication, Tenth Avenue has a strong preference for meeting with clients virtually.
“Even before the pandemic this was the case,” he said. “We service the entire Central Coast and Hunter region of NSW. All of our accounting software and financial planning transactions are virtual, supplemented with face-to-face meetings when they need to happen.”
Mr Connell’s comments come after the Consumer Access to Mortgage Report was released in 2021 which found that only 32 per cent of broker customers prefer video calls. The vast majority (65 per cent) said they would prefer to speak to a broker in person.
While Mr Connell has not become a broker himself, he has struck up a referral relationship with Jim Kiloh, facilitated by National Lending Group (NLG).
“Most referrals from Tenth Avenue are strong,” the mortgage broker said.
“It’s a mutually beneficial relationship from a revenue point of view, but it is mostly beneficial to the client. My role is to find the most appropriate solution for their circumstances.”
Mr Kiloh added that referrals from an accountant are of a higher quality.
“There is already that trust between us, which the accountant has created,” he said. “It creates an enjoyable experience for the client.”
NLG director of partnerships Steve Lake helped facilitate the referral partnership between Jim Kiloh and Tenth Avenue and said accounting practices are increasingly looking to enter the third-party channel.
He said there is a major opportunity for certain types of brokers to work with accountants.
“Some of the best candidates we have placed with accountants are highly experienced finance professionals with great technical and customer service skills,” Mr Lake said.
“They’re more suited to working in a team, supporting a busy office, and using their expertise to deliver great customer experiences. Many of these candidates are former business bankers or branch managers who enjoy working in salaried roles as employees. They have no ambitions to run their own business.”
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