For the diversified Rhino Money business, expanding outside of mortgage broking into a range of related business ventures was a combination of 'future proofing' and realising new financial services opportunities.
Based in Victoria and once running under the moniker Donation Home Loans, when the business donated a portion of trail commission to a charity of client choice, Mark O'Donnell told Australian Broker Online the business changed its model following GFC commission cuts.
The business has since rapidly grown its footprint in a number of areas. It now boasts an accounting and bookkeeping business, a property development project management business and a short-term lending business, which markets its services to brokers.
It has also recently launched property trust, which will hold $10m worth of assets, and even a recruitment JV based in Brisbane focusing on fly-in-fly-out mine workers and engineers.
Of course, the business is still maintaining and growing its core business in both commercial and mortgage finance, though O'Donnell is unsure what the future holds.
“I think our business will become more of a holistic type of business where clients can have all their financial solutions met,” O’Donnell said.
“I think from a business point of view it is necessary not to have to rely on one side of the business, where you are at the mercy of lenders paying commission. Things may eventually go to fee-for-service. It’s a matter of future proofing our business, because things could go either way.”
Rhino Money is not alone. Many mortgage broking businesses are now aggressively looking outside of pure mortgage broking for new opportunities, across industries as varied as accounting, financial planning, insurance and property, among others.
That's why Australian Broker thinks it is critical readers are kept up to date with the latest developments in these sectors, to inform this process of expansion, and diversification.
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