While offering clients a wide range of choice used to be the cornerstone of the broker value proposition, one industry figure says it's now just a "ticket to play".
Loan Market executive chairman Sam White has told Australian Broker that mortgage broking must continue to evolve in its proposition to customers.
“In this phase, for us as brokers, it's about continuing to enhance the value proposition to the customer. It used to be the case that brokers offered choice. Then it was about ease, that they'd come to you. That's commodity now. It's a ticket to play,” he said.
And transactional mortgage broking, White suggested, is no longer a commodity that’s in demand.
“Now it's around how we differentiate our service offering to the customer and become more relevant. How do we make sure we're constantly looking for ways to improve what we do?
Increasingly, being a monoline provider - not necessarily as an individual but as a business - is going to be very challenging.”
White suggested that insurance can become a fundamental part of the way brokers do business. But to do this, he said some brokers required a shift in mind-set.
“There are people out there who genuinely believe that insurance is a fundamental part of the way brokers should do business. If that belief isn't there, it's always going to feel like you're just selling something else,” he said.