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As the mortgage industry continues to undergo dramatic changes, the importance of ensuring brokers are up to speed on new regulations and other matters challenging the financial services sector has never been greater, according to a leading aggregator.
Finsure Group’s national learning and development manager, Anthony Zveglic, said providing high-quality education and training programs for brokers is essential as the industry heads into the 2020s.
The royal commission put the broker industry under the spotlight and highlighted the need for brokers to be highly receptive to customer needs. Further, they need to be educated, positive and persistent in being prepared to deal with future challenges and issues, according to Zveglic.
“Right now our industry will be getting prepared to deal with incoming new laws regarding best interest duty and remuneration reforms for brokers,” he said.
“In the coming year we will prepare for the possible outcomes, the implementation of the new laws, the transitional period and most importantly the training to ensure we meet the expectations of any new legislation.
“There will be greater responsibility in proper compliance execution, audit of applications being lodged/ settled and reporting from brokers, aggregators and lenders to the regulator.
“We expect aggregator technology will improve the e‑ ciencies in the implementation of the new laws and supporting brokers with not only best interest duty, but compliance, reporting, marketing and customer retention.”
Zveglic heads up Finsure’s Broker Academy, which the Group launched in 2016.
“The 24-month mentoring program incorporates a Cert IV in Finance & Mortgage Broking, a Diploma in Finance plus a range of practical skills to equip graduates with all the expertise needed to maximise their chances of success over the long term. We also work in conjunction with some external providers to provide legal, accounting and property advisory services,” he explained.
“Where this program differs from any other in the industry is the attention to detail. We don’t just provide the basic tools but ensure our mortgage brokers are completely prepared for their future mortgage broking career once they graduate from our Academy. Since 2016, we have graduated 68 brokers through the Finsure Broker Academy and currently have 66 participants enrolled.
“In 2020, I aim to have more proactive contact for each Finsure Academy broker in all tiers. Most brokers that I have spoken to appreciate the regular structured contact. I would also like to grow the team to support more brokers that are joining the industry and to provide additional content to the existing brokers.”
Another area of focus at Finsure is supporting brokers with compliance.
“Going forward, there will be more reporting, reviewing and support required for brokers,” said Zveglic.
“This is also likely to lead to more information being shared between the regulators, lenders, aggregators and brokers, which will mean more insights and structured relationships that help drive and support better customer outcomes. Consequently, there will be continued investments into technology development, systems, processes, monitoring, which in turn will flow into brokers and customers.”
While brokers will continue to be key players in the home finance industry, they will also have to adapt to the changing market and shifts in consumer behaviour – and training programs will need to accommodate this factor.
Zveglic said, “Customers are better informed now and have more options.”
“They expect companies to know their individual needs and personalise the experience. They are information hungry and will make carefully considered decisions based on research and recommendations of their family and friends. “We need to help brokers deliver a more personalised service and invest further in digital communications channels to help attract and retain customers.”
