Of all the trends in mortgage broking businesses over the past 12 months, product diversification stands out as a principal driver of their continuing success.
But its importance is more than delivering an additional revenue stream to next month’s cash flow.
Products such as protection and general insurance embed value into a broking business. Renewals give an income stream 12 months on but additional products expand your customer proposition.
If you offer more to clients they have more reasons to deal with you.
By focusing your business on a more holistic view of customers, the relationship moves from transactional to being advice and relationship based.
Is this important? Well with mortgage funding in short supply the economic argument is easy.
But it is more important when you consider the banks are trying to get a greater share of their customers’ collective wallet.
Mortgage brokers are learning what IFAs have known for years. Good breadth of advice makes for loyal customers.
I don’t like the phrase customer ownership but I am convinced the broker proposition is far better placed to achieve this than product providers.
Good breadth of advice is not available anywhere else – even the Mortgage Market Review said as much.
Access to a good volume of general insurance, protection and savings products provides other strings to your bow. Get playing.