The banks cannot complete with us on one thing… maximise it

Posted by Sep16, 2015 Comments Comments Off
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I read this week that stock analysts are putting pressure on the CEO of Westpac, Brian Hartzer to reduce branch numbers in order to reduce costs. The big banks are focusing more on technology and reducing people costs (i.e. staff numbers). This is a major advantage for us (brokers).

It is interesting that some brokers try to make their business look larger than it is (e.g. their website talks about us as if its a big business). I guess the idea is that people trust bigger businesses, not one man bands? However, I dont think this is true at all. People trust people. And it takes a lot longer for people to trust brands (if at all).

Taking out a home loan is a complex and important transaction and its often peoples largest lifetime expense. It is just too risky for 90%+ of the general public to trust a website or faceless brand. Borrowers dont want to be sold to. Borrowers dont need help comparing interest rates or products  there is heaps of free information and tools available on the Internet to do this. Instead, borrowers want to find people (a broker) they like and trust to reassure them that they are making the right decision and they havent missed anything. In short, borrowers want relationships with real people that will look out for them. Ironically, the banks are providing less of these people.

The best advice I have for brokers is play to your strength. Market your personal brand. Tell prospective clients who you are and what you stand for. Remind them that your ability to put dinner on the table for your family is dependent upon you doing a good job for them and looking after their needs  call it old fashioned banking if you will.

Recent research published by MPA magazine suggest that 60% to 80% of people will find their broker via a personal or professional referral (higher income earners and younger people are more likely to rely on referrals). When it comes to banking, people are more likely to refer people, not brands. Youre a person& use it to your advantage.

By the way, next week I will send you an invite to a webinar I am running on 1 October called How to double your referrals& look out for the email invitation.

 

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