Brokers may be more successful in diversifying into products other than mortgages if they stop thinking of it as diversification.
Connective’s Mark Haron told lenders at a briefing in Sydney last week that the term ‘integration’ is one that the aggregator will be using in preference to diversification.
“Rather than saying ‘diversify’, say integrate,” said Haron. “How do you plug the various insurance lines, leasing and commercial into your business?”
While Haron admitted that the change is a purely semantic one, he said it can make a significant difference to the way brokers think about incorporating other products into their business models.
Haron added that the best way for brokers to learn how to do this was to speak to brokers who are already successfully selling diversified products.
“Most brokers just want to know how to throw off the shackles, and get on with selling insurance , commercial loans and leasing finance,” he said.
Diversification was highlighted by Connective as one of the key challenges for mortgage brokers in the year ahead: other issues include improving efficiencies and streamlining processes, especially following the implementation of NCCP legislation, cost-cutting to improve profitability in a slow market and better client retention.
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