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Jessica Darnbrough
Industry professionals who want to be seen as “real brokers” need to diversify, one stakeholder has claimed.
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Speaking at a non-bank luncheon in Sydney yesterday, Liberty Financial’s national sales manager John Mohnacheff said with the residential home lending market slowing considerably, brokers need to diversify in order to continue to run a successful business.
In addition, Mr Mohnacheff said brokers were in the ideal position to diversify into other lending areas.
“There is definitely a resistance to diversification,” he told The Adviser.
“Brokers say: ‘I want to specialise in mortgages’. But the days of just specialising in home loans are over. At the end of the day, mortgage brokers see more than financial planners – they go deeper than financial planners.
“I believe it is the industry’s responsibility to say: ‘wake up guys, you have a real opportunity here to be a real broker and look after your consumers’. It is all about education.”
National Mortgage Company’s chief executive officer Angelo Malizis agreed and said too few brokers are currently diversifying.
“Most are happy with their set in life. They haven’t done it in the past and they don’t want to start now,” he said.
Mr Malizis’ comments are supported by a recent The Adviser straw poll which found more than 1 in 5 brokers do not diversify at all.
When asked how many products brokers cross sell to their clients, 40.5 per cent said 1 or less.
Of the 170 respondents, just 28 per cent said they cross sell two products to their clients.
