What are the biggest challenges for brokers today?
There are a few things that are constant pain points in the broking industry
As a broker, you no doubt enjoy working with figures and being able to meet and interact with a wide range of people, many of whom are from your local area.
Over the years, you’ll have achieved great satisfaction by helping people gain access to loans and make their dreams of home ownership, business ownership or anything else that requires cash up front to come true.
Brokering is one of the best jobs out there, but it is not immune to problems. These are some of the issues that brokers often face and a couple of tips on how to handle them.
Long turnaround times by lenders
A couple comes to you with their eye on a house but only a limited amount of time to put in an offer. They’ve got all their paperwork, but alas! By the time you have received a response from the lending outlet it is too late. Your clients have missed the sale, you’ve missed the commission and the lender has missed out on a whole lot of money. It’s frustrating for everyone.
After recently interviewing several brokers, Australian mortgage and finance broker website The Advisor stated that lenders advertising special rates often results in a blowout in turnaround times. This is a problem amongst the big banks as well as smaller outlets as brokers crowd in with applications and banking software systems struggle to keep up.
Encouraging your clients to get pre-approval before they go shopping for a home can go a long way to reduce the stress of long turnaround times. It also pays to build up a good relationship and stick with the lenders you know you can rely on during the busy times.
The evolving nature of the industry
As well as getting help to secure loans, clients often look to their brokers for wider financial advice including paying off their mortgage, insuring their business, reducing their tax bill or even managing risk.
Recently Scott Guse, Asia Pacific Insurance accounting leader at KPMG, told Insurance Business Magazine that disruption remains a challenge for the industry. “Where (brokers) need to focus their attention is to provide better service for their clients.” he advises.
Diversifying and staying ahead of industry trends can reduce the risk of your brokerage falling behind in terms of technology and customer expectations. If you’re not keen to develop new skills, focus on building a strong network so that you can refer clients to other trusted advisors who will do the same for you.
Despite the fact that it is the client who wants to borrow money, it often ends up being the broker who has to chase down all the paperwork. For clients, the task of gathering ID, bank statements, employment history and tax returns can take weeks. Then they will send it to their long-suffering broker in dribs and drabs, with an email here and a folder of crumpled documents there. This makes keeping track very difficult.
Clients taking forever with documents has the flow on effect of wasting your time and increasing the amount of work you have to do before getting paid.
Work towards a solution by making it clear from the initial consultation what kinds of documents you are going to need from your clients. From there, consider using a secure document sharing app that keeps documents in one easy place. The best versions of these apps are accessible from any device and make it incredibly simple for your clients to upload and share files and images as they come to hand.
What is the solution?
ezidox™ has reduced the amount of time spent on gathering documents by more than half for many brokers. Visit www.ezidox.com to find out more.