One of the evolutionary steps that has changed the business-to-business part of the market has been the decision by specialist service providers to diversify.
Packagers and other providers to the intermediary market have morphed into providing debt management, secured loans, payment protection insurance claims and protection products, as well as their core propositions.
This ability to adapt is the hallmark of a good business and testament to its skills – not only to survive but also to thrive.
But one of the by-products of this adaptation is that some firms have not managed the change as well as others and instead of developing new specialisations they have become jacks of all trades and, unfortunately, masters of none.
Nowhere is this more obvious than in secured loan services. Secured loan advice and packaging has a different methodology and culture to that of mortgages.Brokers try to place secured loan enquiries with one-stop shops only to find that the specialist expertise does not exist.
This has led to long completion times and the rejection of cases at an advanced stage, largely due to lack of knowledge of the process and there being no relationship with lenders’ underwriters.
As a specialist in secured loans, it might seem like sour grapes.
But with some lenders unhappy about the cases being submitted by certain firms, brokers should think twice about using a multi-disciplined agency rather than a specialist for secured loans. It could be an expensive mistake.