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There has probably never been a more urgent need for brokers to evolve their service proposition than at present.
Despite perceptions that home loan customers have a tendency to chase the lowest rate, research shows this isn’t always the case. A significant proportion of Australians are looking for a streamlined loan application process, and the ability of brokers to deliver on this score has been a cornerstone of the third-party channel in recent years.
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However, advances in technology are seeing the direct channel make inroads here.
These days, time-poor consumers can head online to submit loan applications, upload details such as proof of income, and receive pre-approval – all at the click of a mouse, often with results available in a matter of minutes. Further refinements in technology will only serve to improve this process.
Remaining relevant with a holistic approach
In the face of rapidly advancing technology, it is critical for brokers to consider how their service can remain relevant to customer needs. A compelling solution is by providing a holistic approach that offers real value.
This doesn’t mean reinventing a business. It’s more a case of expanding your value proposition. And yes, it may mean an investment in upskilling. Ultimately, though, the rewards are there.
As a guide, at present many brokers invest considerable time and energy nurturing customer relationships. Yet their service focuses on just one aspect of each customer’s financial life – their home loan. The thing is, Australians have a tendency to take out a mortgage at key life stages: buying a first home; upgrading to meet the needs of a growing family; investing to build wealth; or downsizing ahead of retirement.
These are the same life stages at which people are most likely to seek advice on other areas of their financial lives – from investing and insurance, through to super and retirement planning.
This alignment of life stages with mortgage needs creates a valuable gateway for brokers to expand their offering and deepen the customer-broker relationship. But it can only be achieved by brokers willing to evolve their business.
Many are still referring customers elsewhere
It also pays to recognise that as a society we are increasingly time poor. Your customers almost certainly don’t have the time or inclination to traipse from one specialist to another to have their mortgage, superannuation and household investments sorted out separately.
Despite the clear hunger among consumers for a one-stop shop, many brokers are still referring their clients elsewhere. This means loss of revenue and growth opportunities as well as a lesser customer experience.
The challenge for the third-party channel is to recognise the value in doing ‘the right thing’ by each customer, and that involves looking beyond their immediate needs.
Holistic advice can no longer be regarded as an optional extra. It is a sound investment in your customer relationship and your business – because if you cannot provide this support, others will.
