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By: Jessica Darnbrough
As part of its new launch campaign, Vow Financial will pilot a program to undertake the administrative duties of selected brokers, enabling them to focus on their loan writing.
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Speaking at the aggregator’s launch party in Sydney last night, Vow Financial’s chief executive officer Jeff Zulman warned brokers of the impact of commission cuts on their revenue.
“Loans that previously earned a trail commission of 25 basis points are being re-written at much lower levels – some pay no trail in the first year. Broker who don’t increase their output can expect to see a drop of as much as 35 per cent of their revenue,” Mr Zulman said.
The pilot program, which will be launched on 1 May, will allow brokers to spend all of their time concentrating on building client relationships. Brokers will pay a fee for the service which will free them up from much of their administrative responsibilities.
Vow Financial loan processing staff will then take clients’ loans through the various stages of approval and beyond on behalf of the broker.
“Many of our brokers have incredibly strong relationships with their client base, and much of their company’s success has been built on word of mouth. So while they may be very successful in building strong client relationships, completing the paperwork is not their forte,” Mr Zulman told The Adviser.
“As such, we wanted to give brokers the chance to concentrate on their strengths, and strip them of the various administrative burdens they deal with.”
According to Mr Zulman, the pilot will run for approximately three months and will include “five or six” brokers.
“The three month trial will give us a good insight as to how successful the program is and if it is something worth implementing for all our brokers,” Mr Zulman said.
