Allan Savins of Resimac urges brokers to try and capitalise on the opportunity presented by the self-employed sector.
Video transcript below:
Allan Savins, CEO, Resimac
Allan Savins: I think the self employed see this grossly underserviced. As we have seen credit policy is tightened, the appetite to service self employed is really dissipated at the time. So I think it’s a really untapped opportunity.
Reporter: On this week’s Australian Broker TV, we asked if brokers are missing out by neglecting the self employed sector. Allan Savins of Resimac explains just how large the opportunity is and why brokers should be capitalising on it.
Allan Savins: In Australia there is over 2 million self employed people operating and to me that represents a large and significant opportunity for mortgage brokers and potentially lucrative as well. I think the small business sector really seek out mortgage brokers looking for expertise really in their field in order to provide them with a particular solution. I mean sometimes those solutions don’t always fit mainstream lending criteria either. So it’s good to have that knowledge base, so I think that’s why brokers are so important and as lenders continue to tighten credit policy as to mortgage insurers as well, those same self employed clients are looking again towards the broker community to try and service them with particular solutions for their own financing needs. And I think the brokers perspective too having, offering those wide range of solutions to a client, broadens their own opportunities to increase their own volumes, increase their own bottom lines and financial returns and hopefully create a long lasting relationship with a new client as well. So there is many opportunities really that a third party space can really capitalise on the self employed sector.
Reporter: For Savins an example of where brokers could be helping self employed customers is the odd doc space.
Allan Savins: Particularly the odd doc space where self employed people pay good money for tax effective financing, they go to the accountant to try reduce down their tax. But then they always struggle to try and raise borrowing because their accountant has done such a good job, not because they have got anything to hide, but I just think you know there is opportunities for businesses to capitalise on the certain products that are out there for their own circumstances and the odd doc range is perfect for that. I think that there is a genuine place for that product. So yes I think self employed are grossly under serviced, huge upside potential incremental volume, it’s just really knowing how to extract those leads I think in the first place.
Finally Savins has two tips for brokers looking to service the self employed sector. I think the first one is just being aware that solutions do exist and not just wanting to pigeon hole brokers into a particular mould and being aware that there are other lateral you know product solutions that are out there. I think secondly to help their own marketing from a lead generation perspective. Accountants are a great source of leads we all know that, but it’s how do we go about that. So it’s trying to have seminars that brings lenders, accountants and brokers together, having lenders running workshops to say, these are the types of product which we offer and then posing the question to the accountant, to say do you have clients like this, the accountant will generally say, oh actually I do and so he is the person who can help you block those loans, you can service your clients, broker picks up additional incremental business, form long term relationships, so I think forming relationships with not just the accountants, but lenders as well and having them work together, from a work shopping perspective is definitely is strong way from a lead generation perspective.