As the broking industry faces new challenges in the wake of the Royal Commission, one specialist lender reminds brokers there are still areas of the market with strong growth potential.
Liberty Group Sales Manager John Mohnacheff highlights three segments where brokers could find new opportunities by diversifying: personal loans, commercial loans and SMSF lending.
To open up these growth channels, Liberty encourages brokers to contact their database to see what other areas of finance they might need help with.
Mohnacheff said it was “a wonderful opportunity” to provide guidance to customers who might otherwise be unaware of how to get help with their finances.
“Borrowers are not aware of their options, so brokers need to provide good information about their choices,” Mohnacheff said.
“These customers are going to be seeking these products whether they do it through a broker or not.
“As an experiment, try approaching 100 existing customers and exploring their finance needs. I can almost guarantee there will be additional opportunities to help them with other finance products.
“They might have a big life event coming up such as a wedding, an overseas trip or want to do renovations on their house. If you’ve let them know a personal loan could help with an event like this, then they will think of you as their trusted broker when the time comes.
“Similarly, they might have started a new business or be looking to borrow through their SMSF,” he said.
“I hear all the time that brokers write to clients asking how their home loan is going. Why not ask them about other areas of their finances?
“They might not say yes today, but they might say yes tomorrow. It’s about remaining in touch with your customers and letting them know that you’re there for them so you remain top of mind for all finance needs.”
Mohnacheff added that there are other ways to find clients who need help in these areas, such as building a referral network through local accountants or real estate agents.