60 seconds with…..Sally Laker
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It is a great fit – both businesses have grown up together and followed a similar path. It increases our overall size to 545 business advisers, which is a good size, but more importantly good quality, too. We will maintain the two brands as it gives us the opportunity to offer two different pricing propositions but at the same time work from one cost centre rather than two.
Do you see further network consolidation as inevitable?
I do. Cash is king right now and managing a business through a tough climate like this is a true test. I also hope brokers are more wary now when selecting a network.
What effect has dual pricing and product rationing had on your members?
It has hurt them significantly, but I have huge respect for our brokers who have changed their business models to reflect the current climate. They have had to contend with blatant dual pricing, sometimes as much as 1% cheaper in branches, plus lack of funding and products, and virtually no remortgage business because of low property values and LTVs.
There seems to be a feeling that both lenders and the Financial Services Authority would be happier if brokers didn’t exist. What are your thoughts?
I don’t think that’s the case at all. Even in this climate brokers have proved that they have the ability to sell products in quantity over and above bank branches, otherwise dual pricing wouldn’t exist. Why would you offer a product 1% cheaper through a branch unless you needed to bring in sales?
The Conservatives plan to replace the FSA with a Consumer Protection Agency. Do you see any merit in this?
They have always been looking to protect consumers from getting the wrong advice and from being confused by products. Concentrating solely on consumer protection may well allow them to achieve that. However, new ideas do need to be thought out carefully and not rushed in only to be regretted later.
What do you think is the biggest challenge facing mortgage intermediaries today?
Survival. But there is light on the horizon and I believe May 2010 will be the start of a slow recovery. At MI/MN we are in a good place right now to make the most of it when it comes.
