Wake up call for brokers: diversify or die

by Julia Corderoy21 May 2015
Diversification isn’t just a buzzword being pushed by banks and aggregators to sell more products, with a recent consumer survey revealing that more than eight in ten consumers would consider getting a non-mortgage service from a mortgage broker.

According to MPA magazine’s inaugural Consumers on Brokers Survey, 84% of respondents would feel confident in using their mortgage broker for a non-mortgage related product or service. 

MPA editor, Sam Richardson says this should serve as a “wake up call” to brokers who haven’t diversified their service propositions and revenue streams.

“Not only is there money to be made, but being a client’s gateway to these other services feeds into the service aspect which distinguishes brokers from other specialised professions,” he said.

Of this 84%, the majority of respondents (25%) said they would consider obtaining financial planning services from their mortgage broker. This was followed by insurance (20%), vehicle loans (19%) and business loans (19%).

Despite the increasing desire from consumers for mortgage brokers to become a ‘one-stop-shop’, QBE’s 2015 Barometer report reveals some alarming results.

Only 7% of those getting a mortgage through a broker recall being offered home and contents insurance and only 10% recall being offered life or income protection. In comparison, 36% of customers who went direct to a major bank said they were offered home and contents insurance at the point of sale, while 28% said they were offered life or income protection. 

In fact, respondents recalled that the big four banks were nearly three times as likely as brokers to offer any insurance at all. Over half (56%) of the customers that went direct to one of the major banks said they were offered at least one type of insurance at the point of sale, whilst only 19% of broker customers were offered any type of insurance.

Read the results in full in MPA's 15.06 issue, on desks next week, where consumers reveal why they use brokers, what they want, when to contact them and more.
 

COMMENTS

  • by Scott Beattie 21/05/2015 9:22:33 AM

    “Building multiple streams of income is no longer a luxury, it’s a necessity”

    Along with the statement above, if you don't offer it, your competitors will!!!

  • by king clive 21/05/2015 9:53:35 AM

    Clients want MORTGAGE specialists NOT one stop shops!
    This rubbish is being pushed by greedy aggregators
    next thing brokers will be selling steak knives
    DONT FALL INTO THIS TRAP!

  • by Broker 21/05/2015 10:37:20 AM

    You know - Just like Doctors should moonlight as Dentists.