Outsource Financial’s CEO on why new reporting required by regulators means after-sales service needs to improve
It is no secret that the recent Broker Remuneration Review list of proposals focussed on improving customer outcomes.
Whilst it seems there may be some modifications in the way commissions are calculated the changes to remuneration at this stage appears relatively minor – fingers crossed.
The bigger corrections appear to be around extending reporting provided by Lenders, Aggregators and Mortgage Professionals. This will mean broad alterations to current reporting software and data sharing processes for all three parties and whilst I can hear groans already in regards to increased workloads, in actual fact it may assist Mortgage Professionals with their sales and retention processes.
How? The question that will come to the fore – taking the spotlight off the commission discussion, will be ‘what are you doing Mortgage Broker to ensure that you are keeping abreast of your client’s ongoing wants and needs.
This topic cannot just be swept under the rug. It drills down to how you communicate with the consumer and what processes and systems you have in place to ensure you are keeping your finger on the pulse.
The bigger picture is going to be that Mortgage Brokers are going to have to start, if they aren’t already, reviewing their own businesses and by that I mean to implement adequate communication that ensures transparency.
With everything that is going on in the landscape at the moment, for example- interest only clients having to convert to principal and interest far earlier in their loan terms than expected, Mortgage Brokers need to be on the front foot.
Brokers used to complain to me when they received an unexpected clawback.
My response was “why didn’t you know what was going on with your client. If you were keeping in touch you would have known.”
Personally, I think it will need to be a combination of communications with the client. By that I mean not just an automated marketing system that touches the client throughout the year but in addition an annual review that involves having personal contact with the client to check that their needs have not changed and that the loan they are currently in still meets their requirements.
It is about prevention rather than a cure.
Tanya Sale is the founder and CEO of boutique aggregator Outsource Financial and a prominent commentator on industry issues. Previously she managed Finconnect and Lawfund Australia.