Mortgage intermediaries who rely on cold calling for new leads have been urged to consider franchise opportunities if the FSA goes ahead with proposals to ban the practice.
Many mortgage intermediaries are worried that a potential ban would lead to unemployment in the financial services industry as they struggle to find sales channels to replace the unprompted tele-canvassing of new customers.
Peter Birch, a director of mortgage brokerage Mortgage Talk, has urged mortgage intermediaries to consider a mortgage franchise solution as an alternative sales channel to traditional cold calling methods.
“The latest draft rules within CP146 are designed to bring the mortgage industry in line with other investment regulations by prohibiting cold calling as a new lead generator.
“If this goes through, it will have a devastating effect on the income levels of some lenders, as well as many brokers' profit margins.”
He adds: “If the FSA rules are passed in their present form, the next few months will see intermediaries striving to find ways of replacing this potential lost business. Any alternative sales channel will need to provide a solid first point of contact, so that advisers are fed good quality leads from reliable sources.
“Franchising is an ideal solution because it offers the ability to access a ready-made database of prospective clients, all of whom are willing buyers of financial services.”