Brokers fixated on driving new business are missing out on big opportunities in innovation, says ING Direct's Lisa Claes.
Brokers fixated on driving new business are missing out on big opportunities in innovation within their current client base, says ING Diect’s executive director of distribution Lisa Claes.
Claes, who was recently selected as a finalist in the Business Innovation category of the Telstra Business Women’s Awards, says the mortgage industry holds a wealth of opportunity for innovation.
“If you look at what the needs are for customers; they want their needs met quickly, they want value and they expect their broker or adviser to know about them, because we are in the age of ‘all about me’, then there’s a lot of opportunity for innovation.”
As tempting as it can be to pour all of your efforts into generating new business, says Claes, a focus on ways of making your existing customers happier is particularly important for brokers, for whom referrals are crucial.
“I think if you reprioritise your approach, and I’m not suggesting that all brokers aren’t, but really looked at what you had and the opportunity you have to deepen that relationship… Put 80 per cent of your effort into that rather than the other way around, I think you’d find it would bear enormous fruit.”
The key achievement behind Claes' nomination was an electronic customer verification process for savings accounts, and she says she would expect similar advances in the broking space.
“I think there’s a lot of opportunity in both manufacturing and broking on the processing side. I’m sure before long there’ll be electronic verification for mortgages as there is for savings and transaction accounts and superannuation, so we need to watch that space.
“That’s something distributors will enjoy as well, not having to handle identification procedures. So there’s work afoot, but I haven’t seen it emerge yet.”
Innovation doesn’t necessarily require personnel with specialised qualifications or complex IT systems, says Claes.
“I think the true definition of innovation is making something that’s complex simple, and in doing so enhancing the customer experience, foremost, and then as a secondary consequence becoming more efficient.”
Systems that allow core information on clients to be stored in a centralised database, accessible by both brokers and the clients so as to allow self-service when applicable, are a great way of achieving both of these goals, says Claes.
This centralised information can also assist with diversification by allowing easy transfer of data between financial products or referral partners.
“If it’s executed well, and I don’t think many are doing it well, that would be a win all round,” says Claes.
This allows brokers to have more meaningful conversations with their clients, as opposed to interactions being based around collecting data, says Claes.
“Every touch point should be an opportunity, in an intelligent and respectful and meaningful way, to sell. Don’t wait for your customer to ring you up and ask how their loan is, there’s reasons every day to create those touch points, external risk... there’s a lot happening in the world!
“It can be as simple as sending an email saying ‘Give me a call if you want to chat about what interest rates are doing and we can look at your loan’. People want you to be interested in them and what they’re doing, so it won’t be shunned, it’ll be invited.”
Innovation opportunities are everywhere, says Claes, and she’s “a living example” that it doesn’t take a lot of specialised expertise or qualifications.
“You need to be open to ideas and immerse yourself as much as you can in your environment and be good at connecting dots, because that’s what innovation is about; It’s the same set of inputs just put together in a different way to make something completely different. So be alert to what’s around you and listen.”
Where do you see the need for innovation in the mortgage industry? Share your thoughts below.
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