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This year, the Millennials – those born between 1980 and 2000 – will outnumber the baby boomers. They are the Mark Zuckerbergs, Lionel Messis and Jennifer Lawrences of the world, and their lives have been shaped by technology.
How is this relevant to brokers? It represents a clear shift in your staff and customer base. The Snapchat generation – who can now send money to friends with a click of a button – have very different expectations as an employee and as a customer to their parents and grandparents.
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So do these expectations and experiences with technology pose an opportunity or threat?
A report recently published by the MFAA in conjunction with Ernst & Young examined the value of mortgage brokers to both lenders and consumers. As part of their research, the MFAA identified threats to the industry, with digital disruption being top of the list.
According to the report, Australia has one of the highest take-up rates of digital banking in the world, which “will only increase as lenders invest in technology and younger digital natives become the core mortgage consumers”. Its advice to brokers is to focus on a relationship model in order to respond to the threat.
We absolutely agree that positive customer relationships are integral to creating a successful brokerage, and technology has a role to play in enhancing these relationships. If not deployed correctly or used at all, customers will vote with their feet.
This was evident in our latest research where we asked more than 3,000 Australians about their expectations of digital technology. Around a third said they would swap banks if the technology didn’t meet their needs, with this statistic increasing to half among the more tech-savvy.
Even though your customers may not interact with you in the same way they interact with lenders, they will demand the ease and convenience that technology can bring. This will become even more noticeable as the demographics of your customer base change.
Instead of seeing technology as a threat, why not embrace it and see how you can enhance your business?
Just look at Telstra. A few years ago their fixed-line business was haemorrhaging money due to the uptake of mobile phones. One of the ways they responded was by creating the Telstra 24x7 smartphone and tablet apps and CrowdSupport community. These helped to revolutionise the customer relationship and cut the company’s costs, as well as becoming a revenue source.
But embracing digital disruption and transformation extends beyond your customer service and to your entire business. It’s a strategic consideration, not a tactical response, and it doesn’t mean simply updating your website.
Applying technology to growing your brokerage means digitising business systems and processes. This could mean improving productivity by enabling employees to work anywhere, anytime, by creating a virtual network. Or it could mean automating your sales and marketing.
In either case, digital disruption does not have to be your bête noire. It could be your silver bullet. So isn’t it worth exploring?
