“Share of wallet” is set to be the next battleground for brokers and lenders, but the two may be at odds on what the concept means.
National Mortgage Brokers managing director Gerald Foley has told the aggregator’s national conference in Hamilton Island that both banks and brokers must strive for “share of wallet” with every customer interaction.
“Share of wallet is going to become the bigger focus now, and that will become the dilemma for the broker/lender relationship,” he said.
Foley explained that share of wallet entailed servicing a client across a variety of different products, but said banks and brokers may not see eye to eye on how this share is divided.
“My share of wallet is quite different to your share of wallet as a lender, and that will be a dilemma that will cause a little bit of discussion and debate,” he said.
Whereas banks look to own a customer across a variety of proprietary products, Foley suggested that brokers would offer the same products to clients, but often from different sources.
“From the bank view, share of wallet is a client taking a loan and maybe one or two other products with the same lender. The broker share of wallet view is you come and arrange your loan, maybe insurance and maybe something else on the side as well, but not necessarily all from the same lender,” Foley said.
Foley commented that it was vital that brokers stay ahead of the curve in offering a variety of services to clients in an endeavour to carve out their own “share of wallet”.
“It’s not a matter of I’ll deliver you a loan and receive commission and the rest is a free kick. It’s not going to be that way, and brokers have to be in front of that and offer more than one product to the client,” he said.
“If it makes sense to use the same supplier, of course you do that, but it doesn’t always have to be that way,” Foley added.
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