Advantedge Distribution's Brett Halliwell on the compelling component of white label loans
Advantedge Distribution's Brett Halliwell looks at the compelling component of white label loans
White label has come a long way since its beginnings in the industry just a few years ago. From a new concept that brokers were curious about, to a disruptive force that’s become an essential on many lending panels, white label loans have grown momentum because of the benefits they offer brokers and clients. In 2015 alone, major aggregators AFG, Connective, Loan Market and Astute Financial have rolled out new white label products to brokers, illustrating the power of the white label proposition.
So what is it that makes white label loans so compelling for brokers? One advantage is exclusivity. The fact these loans are only available through the broker channel means the broker, rather than the lender, becomes the face of the loan. This means clients will return to the broker to make any adjustments in future years, and will recommend the broker wholeheartedly if they have a great experience.
Another important aspect is flexibility. White label clients only pay for the features they actually use – they can pick and choose options like offset accounts, debit cards and redraw facilities, or opt for a no-frills product that saves them money over the life of their loan. For this reason, white label loans are great for cost-conscious customers.
From Advantedge’s perspective, one of our key selling points is the security of knowing loans are backed by NAB. While clients can be unsure about a no-name brand at first, being able to explain that their loan is funded by one of Australia’s biggest banks, but often for a lower price than a NAB branded loan, is a powerful card for brokers to play.
Having the white label conversation with clients – top tips:
White label has come a long way since its beginnings in the industry just a few years ago. From a new concept that brokers were curious about, to a disruptive force that’s become an essential on many lending panels, white label loans have grown momentum because of the benefits they offer brokers and clients. In 2015 alone, major aggregators AFG, Connective, Loan Market and Astute Financial have rolled out new white label products to brokers, illustrating the power of the white label proposition.
So what is it that makes white label loans so compelling for brokers? One advantage is exclusivity. The fact these loans are only available through the broker channel means the broker, rather than the lender, becomes the face of the loan. This means clients will return to the broker to make any adjustments in future years, and will recommend the broker wholeheartedly if they have a great experience.
Another important aspect is flexibility. White label clients only pay for the features they actually use – they can pick and choose options like offset accounts, debit cards and redraw facilities, or opt for a no-frills product that saves them money over the life of their loan. For this reason, white label loans are great for cost-conscious customers.
From Advantedge’s perspective, one of our key selling points is the security of knowing loans are backed by NAB. While clients can be unsure about a no-name brand at first, being able to explain that their loan is funded by one of Australia’s biggest banks, but often for a lower price than a NAB branded loan, is a powerful card for brokers to play.
Having the white label conversation with clients – top tips:
- Talk to your BDM first – Before approaching your clients with a white label option, make sure you’re comfortable to explain what the loan is and how it works. Your BDM is an important resource – Advantedge products are backed by a team of dedicated BDMs who help brokers to understand which clients are suited to our loans and why.
- Horses for courses – White label products are not generally a one size fits all option. They will suit a certain type of client, and the better you the broker are at identifying that type of client, the more likely they are to have a great experience with the product.
- Make use of marketing tools – White label loans often come with a range of marketing collateral including brochures and websites to help clients better understand what white label is and why it may work for them. Your customers will likely feel more at ease once they are able to educate themselves on the product, and understand where it has come from.
