The benefits of becoming a one-stop shop for clients

These themes were discussed by Jason Back and Alex Whitlock in a recent episode of Business Accelerator. Here, the benefits of diversifying offerings and the potential it has to propel brokerages forward were analysed.

Whether or not the service is able to be completed by the organisation in question doesn’t matter. If referrals can be made, brokers are able to become a one-stop shop for clients and provide a more comprehensive service.

“The discussion is around the trusted adviser and the evolution of what our advisory industry is being seen as. Rather than a transactor, they are seen as a source of truth and as a confidant to people’s financial wealth and future,” said Back.

“[It’s about] supporting your client and not necessarily about executing, but being the person that they come to, to either get the referral to someone, a specialist in another field that might be able to execute. If they’re going straight to these other professionals, if they’re not seeing you as the person that’s the centre of their wealth creation universe around things like debt, then they’re going to go somewhere else and the competition’s heating up.”

According to Back, if brokers aren’t able to assist clients, they will look elsewhere to those who can. This drives home the importance of diversifying services and branching out beyond comfort zones.

“We’re starting to see asset finance riders who now do residential mortgages. We’ve got commercial writers who have always specialised in a very challenging field, now stretching out and doing more resi. So, I just feel that if you’re not clear on understanding what the needs of your clients are, they’re going to get served elsewhere,” he said.

“It doesn’t mean you need to do everything. And I’m on the record saying I think brokers can over diversify sometimes, but you really do need to understand your market, their needs wider than potentially just their resi loan, to understand where else they’re seeking advice. Because if you’re not doing it, someone else probably is.”

The idea of being a strong supporter of client needs was discussed in a recent Broker Daily article, which highlighted how brokers are seen as a “source of confidence” for home buyers. Fifty-seven per cent of home buyers needed support in researching properties, understanding affordability and financing, determining borrowing capacity, and researching loan availability.

Meanwhile, 45 per cent of first home buyers said they found it difficult to research which loans are best for them, while 52 per cent anticipated challenges in getting the loan they need.

“There are a lot of good brokers out there that do have a diversified offering. Maybe your customer comes along for a personal loan or a car loan that you politely say that’s not an area I specialise in. You give them the soliloquy about what a dedicated residential specialist you are,” said Whitlock.

“The danger is another broker who’s also very good, who has a diversified offering, goes and fulfils that need. Oh, and then guess what? Then they start to have a look at the whole of your situation, doing a proper needs analysis, and then see that there’s a residential loan there or two and there’s a danger that you’ll lose that very high-quality residential client.”

Back said: “Amanda Stevens, who’s a well-known consumer trends expert in Australia, [I was] listening to her recently talk about clients looking for kit solutions. It’s a bit like IKEA and having flat packs. They don’t want to go to 10 different stores. They want to be at one store, they want to be able to pick up three or four things and they want to move on.

“I’d like to think our industry is a little bit more sophisticated than that. I know again, for me I want a real specialist in areas that I’m particularly interested in. But that being said, if you’re not executing for me, that’s okay, but I need to know that person or that services potentially within your sphere.

“So, if we’re not looking at diversifying as an expertise internally within your business, then really what you’re looking to do is have a suite of offerings within your ecosphere that allows me to still remain under your understanding of what’s going on.”

The transcript of this podcast episode was slightly edited for publishing purposes. To listen to the full episode of Business Accelerator, click below:

Jack Campbell is the editor of Broker Daily. After graduating from the University of Wollongong in 2022, Jack began his journalistic career working on Broker Daily’s sister brand, HR Leader. In August 2023 he was made the news editor and worked alongside some talented journalists writing articles and recording podcasts.

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