Mortgage groups looking to edge out competition are now including a financial advice service.
Aussie Home Loans was the latest to announce it would be building a financial advice arm in an effort to boost revenue.
“We have to write more mortgages but also have to generate a lot more non-mortgage revenue by leveraging the Aussie consumer brand,” John Symond told the Australian Financial Review.
Symond’s expansion plans include recruiting dozens of wealth managers, as well as boosting broker numbers to more than 1,000 by the end of 2012.
Mortgage Choice announced in November that it would be launching a financial planning arm as part of its DREAM strategy. According to CEO Michael Russell the wealth management business would help clients with insurance, superannuation and wealth management goals.
While Russell indicated that individuals operating in Mortgage Choice would either hold an ACL license or an AFSL, others argue it is possible for mortgage brokers to do both.
According to Wealth Today CEO Michael Stephens it is a natural progression for mortgage brokers to start offering financial advice themselves.
“Our business is built on the premise that there is a significant synergy between mortgage brokers and planners, and I think you’re going to see more brokers migrating to offer advice,” Stephens said.