Phil Riches (pictured above), senior mortgage consultant and CEO at Finance on the Coast, recounts the foundation and growth of Model Mortgages, discusses industry advocacy and embracing technology, and offers advice for aspiring brokers.
The company, established by his wife and business partner Virginia Graham in Bondi Junction in 2004, initially catered to clients in Sydney’s eastern suburbs.
“At the time of inception, I was employed by Westpac in various roles from home and investment finance to commercial banking,” Riches says.
He joined Virginia in 2010 and began building long-term referral networks with trusted accounting firms.
The decision to hold their own Australian Credit Licence (ACL) marked a significant milestone.
“Over time, we have expanded the team by bringing on a small number of trusted contacts through our banking and broking experiences,” Riches says.
Riches praises the appointment of Mike Felton at the Mortgage & Finance Association of Australia (MFAA) during a crucial period for the industry.
“Mike and his team, including Zarko Jokic, worked tirelessly to represent MFAA members incredibly well,” he says.
The growing percentage of clients choosing brokers year after year is a testament to the positive developments in the broking sector, Riches says.
Addressing current challenges, Riches highlights the rapid pace of AI and technological advances and the banks’ focus on direct digital channels.
“Learning more about and implementing AI and technology into the appropriate areas of our workflow processes is absolutely key,” he says.
Offering clients a choice between AI-driven processes and traditional methods ensures they receive the best service.
Riches views competition from banks as healthy, maintaining that their honest, client-centric approach will continue to thrive.
The broking industry has faced significant scrutiny on practices and remuneration, followed by the impacts of COVID-19.
“The biggest lesson our team learned was to always do our best to maintain close contact with our clients,” Riches says.
Ensuring clarity and offering ongoing assistance have been essential strategies.
“We came through this period with more stringent ways of showing our clients that we always act in their best interests,” Riches says.
Riches offers valuable advice to new brokers: network extensively, utilise social media, build referral networks within financial services, and seek personal referrals from clients.
“Be prepared to work extremely hard, set stretch targets, and remain focused on them,” he says.
Personal growth in his business came from strategic planning with Virginia, including writing a mission statement and a five-year plan.
“Cross-checking how we were tracking vs. the target was crucial,” he says.
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