Investors increasingly want all their financial services centralised with one provider. How can financial planners respond to this, to become a more comprehensive finance outlet for their clients?
Mortgage broking represents a major opportunity for financial planners looking to improve their profit margin, and incorporating this service is not as difficult as first thought.
Many businesses have begun integrating mortgage broking services into their financial planning. This case study illustrates how MBA Wealth Management and Inside Mortgages adopted this service, and how this expansion has improved their proposition.
Convergence, what a buzzword! ‘The Convergence Debate’ is the latest neologism in the mix, with various industry figures disputing whether brokers should also offer financial planning, and vice-versa. It’s a topic that has been getting a lot air time recently and I find it interesting to see how our industry is evolving. However, I think the ‘Convergence Debate’ is overlooking one very important element – and that’s your end client.
We are all familiar with the phrase ‘the evolution of advice’. We are hearing it more and more. In fact, here on this platform we are seeing a shared resource for financial planners, accountants and mortgage brokers. But while the number of mortgage brokers who are converging on the financial advice sector, and vice-versa, is increasing, it remains a challenging cultural and regulatory area.
Industry data tells us that a little over 80 per cent of all mortgage brokerages operate as sole traders, or with one other staff member or loan writer. What this means is that the majority of mortgage broking business are conducted by owner operators.
No More Practice Education Pty Ltd
Level 1, 10 Shelley Street, Sydney NSW 2000
