‘Brand you’ most valuable to borrowers

by 25 May 2012

While branding may help clients feel secure, a market researcher has stated that broker to client relationships are ultimately the most important.

CoreData founder Andrew Inwood has told the MFAA Convention in Adelaide that brokers and non-banks are consistently outperforming banks on customer satisfaction.

"Brokers and non-bank lenders dominate that space. The relationship is fundamentally warmer, and that relationship tends to be personal," he said.

Inwood said customer loyalties were generally to individual brokers rather than to the third party channel itself.

"One of the really difficult parts about running a broking business is that the relationship is very rarely with the broking channel; it's with the individual," he said.

As such, Inwood said customers would rarely show loyalty toward brands themselves.

"In the end, it's the brand called you. It's the individual broker. It's not YBR or Mortgage Choice. It's Sam, or George, or Betty or Simon. It's really important you understand that," he said.

In spite of this, Inwood said branding could inspire confidence in consumers. However, he said brokers must not forget the primacy of their individual relationship with clients.

"It's important to have a halo brand, particularly with the concern of security at work as it is at the moment, but the really important part is understanding that it's the brand called you," he said.