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ISCOVER
Staff Reporter
Joint ventures are the only way forward for mortgage brokers and financial planners, Trigon Financial has claimed.
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Trigon Financial founder Alan Rich said that as both industries evolve, more cross-over between financial planning and mortgage broking is emerging.
Mr Rich said with mortgage brokers and planners eyeing off each other’s territory, a joint venture between parties from each industry is often in the best interest of everyone involved.
“By establishing joint ventures, which cement a commonality of interests, you overcome what is often a barrier to success, which is that people on either side can tend to focus on what they are giving up rather than on potential benefits from getting together,” Mr Rich said.
“By letting planners and brokers retain individual identities while building in motivations to grow joint interests, there is a win-win all round, especially for clients who respect being able to stay within a professional family while having confidence they are getting the best advice and a holistic solution,” Mr Rich said.
Trigon has been the instigator of a number of joint ventures between financial planners, accountants and mortgage brokers, with structuring intended to pick up on strengths and minimise weaknesses from the combination.
Mr Rich said in Trigon’s experience, it is very simple human factors that have led to other models proving to be unsatisfactory in attempting to bring together financial planners and mortgage brokers.
“Most financial planners really enjoy what they do and while an idea about employing a mortgage broker might seem good at a point in time, planners prefer to focus on planning rather than broking and so the initiative tends to wither over time,” Mr Rich said.
“Similarly with finance brokers, they like to focus on deals as they come in rather than have financial planning in place to generate business growth that might come from closer associations with financial planners.
“It is a joint venture that captures benefits for both groups since it sets up a vehicle supported by incentives to build mutual business while giving clients the best advice and service at the same time.”
