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Channel conflict is a fact of life, and I think a lot of brokers forget that channel conflict is a two-way street. I have yet to meet a broker who would think twice about pinching a client from a bank.
In my view, channel conflict has no part to play in lender selection. I strongly believe that in my business I have to place clients with the lender that best suits them – not us. Channel conflict gives us the opportunity to outshine the banks at every stage of the client relationship. From application to well beyond settlement, through effective post settlement communication and a proactive approach, I do what I can to ensure ongoing client satisfaction and client retention – regardless of lender actions.
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If a client is happy where they are – be it with their broker or directly with a lender – they will maintain the status quo. If they are dissatisfied, or feel that the grass is greener on the other side, they will move away from the broker. That is the way it should be, and this creates a strong ethos within my business to stay in touch with our clients.
As brokers, we are paid a trail commission to ensure that clients’ ongoing needs are being met. If we are not meeting their needs, we should not expect to retain the client. The same logic should apply to “branchland”.
Whenever I direct a client to a bank branch, I ensure that I talk with the branch first. If possible, I arrange the appointment and make sure that everyone knows I’m an integral part of the relationship. I don’t have too many negative experiences with branches, and any I’ve had have been swiftly and effectively dealt with by BDMs.
The existence of channel conflict makes me earn my trail by ensuring that the client is always happy. I regularly go back to lenders on behalf of existing clients to ensure they are receiving the most competitive offers available. If a lender is unwilling to negotiate and there are more suitable options, I will explore them with the client. Often this leads to a refinance and a happy client who I know I’ll have for life.
