New Diploma a gateway to fee-for-service

by Adam Smith14 Nov 2011

Intellitrain has stated that its new Diploma program could help pave the way for fee-for-service.

New government education standards for Cert IV and Diploma courses are set to come into effect from 24 November, and Intellitrain has said new courses offered as part of its Diploma program will help brokers offer a better service proposition to their clients. The changes set to come in will see the educator’s Diploma course expand from two days to three days, and will add a course in assisting customers with budgeting and finances. Intellitrain CEO Paul Eldridge told a broker webinar that the additional training could help brokers introduce a fee-for-service.

“We know that 70% of Australians don’t know how to budget. On day three you’ll learn how to educate your clients how they can be better with their money. If you are providing this kind of extra value to clients, then that’s a service you could introduce in your business as a fee,” he said.

The course will offer students budgeting tools to give to their clients. Eldridge said educating clients in budgeting could also help brokers better adhere to responsible lending practices.

“In responsible lending, you have to determine affordability, not serviceability. You have to determine can a person actually afford the loan you’re giving them? To determine that, you have to look at their budget and see where’s their money going,” Eldridge said. “Now you can actually give your clients coaching and assistance in that area, and give them the tools to manage it. This is something you could potentially start to charge for.”

Brokers who have already enrolled for or received their Diploma will not have to take the updated courses, but Eldridge argued many could benefit from the additional training. He said the courses would still be open to interested brokers who had already earned their Diploma.

“It will show you how to transition from just a practitioner or someone who’s good at writing loans to someone who knows how to grow their business,” he said.

Eldridge told the webinar’s participants that Intellitrain would release pricing for its new Diploma program soon. He contended that, while the program will be more expensive than the current Diploma, brokers will see more value from the courses.

“The new one will be a few hundred dollars dearer, but you actually get three days, and you should come out of it actually learning how to make some more money,” Eldridge said.

Related stories:

Trainers urge pre-November enrolment

MFAA negotiating after Diploma oversight

Brokers in dark on November Diploma deadline


  • by bradq 14/11/2011 9:32:00 AM

    A fee for service really isnt a good idea... why do you guys keep spruiking it? lenders WILL reduce commissions if the industry as a whole, starts charging fees to clients. I for one will keep my services free to my clients...and my business will grow quicker than someone who charges fees.... I guarantee it!

  • by Ozboy 14/11/2011 10:04:13 AM

    Hi bradq, well each to their own and yes your business may grow quicker (depending on what you measure to prove this) but will it be more profitable? That's the big question. You can have 5000 clients to make x and someone else could make the same money with only 3000 clients, less stress, less staff, less drama but that doesn't mean their way is any better than yours just different.

    Lenders won't reduce commissions if a fee is charged people need to stop using this excuse to justify their side of the argument. Over the last 3 months we have seen more lenders come back to the broking market and we have seen some lenders (including the majors) actually put commissions up.

  • by countrybroker 14/11/2011 10:35:54 AM

    Hi Ozboy you are spot on . Fee for service has NOTHING to with commissionsand yes lenders are starting to recognise what a value brokers are. Will people please learn the NCCP rules and regulation , a broker can charge a fee NOW but must it must be FULLY disclosed. Paul Eldridge is right in this article , a lot of brokers could do with further training , but you may not need a revised diploma to achive that , just get in and get trained .
    Brad can keep his services free to the client that is his choice, it is about offering value to our clients. I will be normally offering a free service , but on a low dollar deal or a comlex commercial transaction may charge a fee.