PARADIGM MORTGAGE SERVICES
Can you explain the Paradigm model?
Paradigm Group offers business consultancy and solutions for all intermediary businesses, with a focus on established IFAs and mortgage brokers. We have some 610 partner firms operating across all business areas and represent more than 2,500 registered individuals. Our ambitions are underpinned by a business that is ready for the Retail Distribution Review and the Mortgage Market Review. We focus on building professional client relationships that provide recurring revenues and build value for our intermediary and provider partners.
What benefits do clubs offer brokers that networks don’t?
Our members benefit from market-leading proc fees and access to exclusive and semi-exclusive products. We also offer a wide variety of other products and services. The main difference between ourselves and our competitors is that our members have the chance to share in the capital growth of the business via a discretionary trust. This means that the more business members place through Paradigm, the more they can build value attributable to their own businesses.
It’s been a tough few years for brokers, so will 2010 be better?
It’s hard to imagine it being worse, but there are still bound to be winners and losers. Those who have invested time and initiative in shaping their businesses for the future will be the beneficiaries of those who have fallen by the wayside in recent years. A sharp focus on the cost to income ratio is always important, especially in a restricted environment.
Will the outcome of the general election have any impact on the broker sector?
History tells us that changes in government always affect aspects of the economy, not least the financial services sector. If change brings growth in confidence, that is likely to be the greatest influence on brokers’ business prospects. But whoever wins there are tough decisions to be made, particularly on public spending.
What are Paradigm’s plans for 2010?
As market dynamics continue to evolve we are shaping our operation to take advantage.
But we will continue to offer our members access to the best possible terms as well as a variety of services that facilitate business diversification and valuable additional income streams.
Interview by robert thickett