As many advisers and brokers would know, earlier this year Mortgage Choice made the decision to expand our services from mortgage broking into broader financial services. We believe this transition is a natural one that enables us to build on our existing expertise and networks to create an even more compelling branded customer value proposition.
It is also a move that is logical in terms of the new environment that is unfolding around the provision of financial advice. The expansion of our services to assist customers at each stage of their personal finance life cycle sits squarely with our desire to help consumers make better financial decisions.
That brings us to the question of what such a move means in practice for the brokers and advisers at the heart of our business – and, most importantly, for the customers we all serve.
It is our belief – and the belief that underpins our decision to expand our service offering – that collaboration between professional brokers and financial advisers is the only way to go. If we choose the alternative – competition – there is no upside for anyone: advisers, brokers or customers. By collaborating we can ensure that:
- Customers’ needs are best addressed, through delivery of holistic services that meet a wide spectrum of financial needs;
- Access to diversified revenue opportunities is gained, which provides a sustainable base from which to grow and improve business and its value to all stakeholders: customers, employees and partners; and
- We build strong, long term relationships with customers for the benefit of all concerned.
To expand on the above, strong collaboration between brokers and advisers allows each to be the specialist in their own field, which in turn delivers the most suitable outcomes for each client’s particular needs. This also ensures that revenue opportunities are maximised on both sides of the business, as each focuses on driving their respective business areas. Finally, being able to provide a customer with a more holistic approach to their financial needs can lead to stronger and longer-lasting relationships with those customers, removing their need to seek advice elsewhere.
It is interesting to note in terms of crossover of the two business streams, broking and advising, that there are considerable opportunities for cross-selling on either side, as indicated by gaps in the services that consumers are currently receiving.
Given that less than 30% of Australians traditionally seek financial planning advice, the majority of customers coming through the broker’s door won’t have a relationship with a financial adviser, and their first point of entry to any kind of financial advice will be through the home loan process. If they trust their broker as a result of that experience, they are more likely to trust the referral from the broker to the adviser, especially when also under the same brand.
Of course, what is fundamental here is that both parties share a common set of values and ethics and at Mortgage Choice that means ‘customers first’.
Michael Russell is the CEO of Mortgage Choice – a leading mortgage broker that has sourced a home loan for well over 350,000 people since 1992 and is currently responsible for writing one in every 25 home loans across the country.
