Income, asset value and value to clients.

Just getting your clients a mortgage isn’t enough. It’s time to protect your clients as well.

Don’t be fooled into thinking that financial planning is all too complex, time consuming and only suited to wealthy clients. The fact is, when a mortgage or accounting client’s basic financial needs are properly taken into consideration, appropriate financial advice for the client can be very simple. That’s why there are no excuses for not setting up a financial safety net for your clients in conjunction with what is likely the largest and most significant debt of their lives – their mortgage. Their home.

Its simple, provides peace of mind for both you and the client and is the first step toward a life long working relationship assisting your clients to meet their financial goals.

Need more reasons to consider integrating financial services into your business? Here are just a few:

To meet growing demand for sound financial advice among every day Australians.
To remain competitive in an industry that is heading in this direction anyway!
To transform transactional client encounters into lifelong working relationships.
To significantly increase your earnings and the value of your business asset.

So what are the real day to day advantages of adding financial planning to your business? Let’s take a look:

  1. Increased earnings. On average, a planning client is worth $4,117* in the first year and $1,500 a year ongoing. This is on top of mortgage broking or accounting income and doesn’t have to come out of a client’s cash flow. (*Average of actual upfront Member earnings 1/1/2013 – 27/10/2014 and recommended Ongoing Service Fee.)
  2. Increased asset value. Financial Planning business sales and acquisitions can reach between 2 and as high as 4 times the annual recurring revenue. (Chris Wrightson, Centurion Market Makers, May 2013.)
  3. Client control. Regardless of the integration model adopted, Members retain full control over their clients.
  4. Maximize all leads. Financial services can be offered to existing leads. For a mortgage broker, that includes clients that didn’t qualify for a loan! A client that didn’t qualify but accepts basic advice is worth a minimum of $750 straight up and thanks to your advice, will come to you when they can afford that mortgage.
  5. High rate of crossover. Typically, our Members are seeing 75% crossover from mortgage broking to advice and 90% of those take up the advice.
  6. Client loyalty. By becoming a Financial GP for your clients, you will enjoy increased client loyalty and value perception.
  7. Long term relationships. The annual review process enables further touch points and services for clients which lead to greater retention levels and increased referrals.

A gap in the marketplace.

There is a very real need for sound financial advice among every day Australians, but Financial Planners typically only service high net worth clients. They work on high end investment plans, funds, equities etc. Our approach to advice is very different.

We will work with anyone and begin with the simplest of concepts such as removing inefficiencies in cash flow, optimising bank account structure and creating a cash buffer. These and appropriate protection are the foundation blocks for good financial management and it’s where we like to start with our clients.

Maintain an edge amid growing competition.

Integration of multiple financial services is the direction our industry is heading in. To remain competitive, brokers need to take action because as more business owners take this step, so grows the expectation among clients that they can come to you for all their financial needs.

Consider too that whilst Brokers are adding financial planning to their businesses, Planners are also starting to integrate finance broking into their businesses! Add to that the emerging trend of consumers to seek finance online and suddenly you are in very real need of a high value service offering!

It’s a competitive industry and we’re committed to helping you maintain an edge!