Set to be a milestone within the industry, Best Interest Duty will strengthen the mortgage broker proposition and bring the best broking to life, says PLAN CEO, Anja Pannek.
MPA spoke with Pannek on the ways brokers can leverage BID in order to differentiate themselves from others in the industry and deliver the best customer experience possible.
BID is a game-changing opportunity
At its core, mortgage broking is all about customer service. The implementation of BID will solidify this and bring to light the work that brokers do in finding the best finance solutions based on a client’s goals and objectives.
“We believe the Best Interest Duty is a major value differentiator for brokers and sets them apart from the lenders they work with, while bringing the best of broking to life,” Pannek says.
“What BID will deliver is a heightened customer experience and a pledge that brokers will always act in the best interests of their clients.”
Preparing for best interest duty
Pannek says integrating BID requirements into the way brokers do business is an essential step for those looking solidify their brand and reputation during this challenging environment.
“PLAN Australia is focused on leveraging BID so that brokers can continue to build their businesses and their value proposition around the customer,” she says.
“We have been keeping our members up-to-date with everything they need to know and implement in preparation for the official ‘go live’ on 1 January 2021 through our Podium Knowledge Hub Best Interest Duty dedicated page.
“We will also be running a series of webinars as we approach the implementation date to further help members prepare for Best Interests Duty and ensure they are confident in what their obligations are and how to meet them.”
Looking after clients during COVID-19
The lead up to BID has occurred during an extraordinary climate – one in which brokers are helping a sizeable portion of their client base apply for hardship, while taking the necessary steps to look after their own businesses and staff during a period of economic uncertainty.
“A mortgage broker’s role is vital in assisting customers during the good times as well as the challenging times,” Pannek says.
“Brokers have a unique opportunity to be of service to their clients as they navigate the changes that are impacting us all.”
Pannek says this service will go a long way in the lives of clients while helping brokers to maintain customers over the long term.
“There is much brokers can do to support customers who require this help. There are many people throughout the community who need brokers’ assistance right now - and we expect many more to need them over the coming months,” she says.
“Separately, brokers can also be working with customers who are financially unaffected by the current environment, where record-low rates continue to provide opportunity for refinancing.
“It is important for all brokers to stay close to clients during these uncertain times. These customers need to know that they have a trusted professional by their side.”
Both the pandemic and BID present an opportunity for brokers to strengthen their relationships with customers. While it may be challenging to focus on the latter when the former takes up so much attention, the January 1 deferral allows brokers a bit more time to organise their systems and processes accordingly.
“It is important not to lose sight of the ongoing issues that are reshaping the broking industry during this extraordinary time.”
“We are working closely with our members to ensure they feel as supported as possible.”