Here's how the couple can better work together
Talk of relationships is in the air amid Valentine's Day and as Kiwis continue to enjoy warm summer days. But one type of relationship that often receives less attention is the adviser-lender dynamic.
The duo relies on trust, communication and shared goals to make it work. Whether that be while referring clients, trying to secure approvals, adjusting loan structures, making investment decisions, or trying to get a settlement over the finish line. Advisers and lenders must learn to collaborate effectively, aligning their values and expectations. When done effectively, advisers and lenders can help create a secure financial plan for borrowers, while also enhancing the stability of their own relationship and ensuring all parties feel supported in the shared journey.
But like any couple, advisers and lenders face their share of challenges. By learning to better work together, advisers and lenders can create a smoother path for their clients’ financial success and personal happiness.
In honour of Cupid's day, New Zealand Adviser has created a love letter for advisers and lenders, asking both parties about their biggest pain points in their relationships, and how they can better work together moving forward. The responses have been edited for clarity and length.
April Hastilow
Christchurch-based mortgage adviser at Opes Mortgages
"We keep talking about unprecedented times. But I think the thing that everyone hopefully realizes, or keeps reminding themselves, is that lenders and advisers are on the same team. We're all just trying to get better solutions for people with their lending, be that structure, be that interest rates, just be it making people more confident in the choices that they're making, because they're educated. And the thing I found this year is the banks have thrown staff over the Christmas period at bringing down those turnaround times. The [longer turnaround times] were nothing like they were last year. We're talking two or three days in the advisor channel. So I think the pain points that there were last year have been dealt with, both by the natural loll of Christmas, allowing the backlog to be clear, but also the banks have thrown significant resourcing [at the slow turnaround times.] And, I will never be an advisor that says that the banks were doing anything wrong, because I think that the most important relationship that I have is the relationship that banks have with advisors, and advisors have with the bank."
Brock Shute
Director and mortgage adviser at Wellington-based The Mortgage Advice Company
"The biggest pain point between advisers and the banks is that the service levels are not acceptable. Some banks advertise a 24-hour turnaround if you deal directly with them, but then have a seven day [service level agreement] if dealing via an adviser.
"To work through these issues, we have to be efficient with our processes and make sure we are getting applications submitted in a timely fashion, and then continually follow these up. While the timing is painful, it is still manageable and our clients see the added value with the service we provide. So we are happy to wait those extra few days for their approval to be issued. There are a couple of banks who also see the value in the adviser space, and have heavily invested in their business to work with advisers. These banks tend to fare better in terms of market share as a result. The long term solution (and hope) is that the other banks realize that the adviser space is incredibly important both for our mutual clients but also the banks. A better educated and informed homeowner means a better performing market and more Kiwis becoming homeowners."
Elyce Peters
Cofounder and managing director at Christchurch-based The Mortgage Girls
"The adviser-lender relationship is a fundamental pillar of the financial industry, ensuring clients receive the best possible guidance and lending solutions. At its core, this partnership is built on trust, communication and a shared commitment to delivering positive outcomes for borrowers. As an adviser, I believe the strength of our relationships with lenders and assessors plays a crucial role in navigating the complexities of the financial landscape.
"While this collaboration is highly effective, one of the ongoing challenges in the adviser-lender dynamic is the speed of responses. In an industry where timing can make all the difference, waiting for critical updates can be frustrating. No one likes to be left in limbo, and the need for quicker turnaround times is something we all continuously strive to improve.
"However, this is not a one-sided issue; it’s a shared responsibility. Lenders are managing large volumes of applications, compliance requirements and ever-evolving lending policies, while advisers are working to provide clients with real-time updates and solutions. The key to overcoming this challenge lies in ongoing collaboration, enhanced communication and leveraging technology to create more efficient workflows.
"Open dialogue, proactive engagement, and a commitment to continuous improvement from both sides will help strengthen our partnership and ultimately benefit our clients. At the end of the day, advisers and lenders share the same goal: to help clients achieve their financial aspirations. By working together, embracing innovation and refining our processes, we can continue to enhance the adviser-lender relationship and provide a seamless experience for borrowers."
John Moody
Chief Financial Officer at Hamilton-based non-bank lender Basecorp NZ
"We have a really strong working relationship with most advisor groups. From our perspective, advisors are cognizant that there continues to be other options outside the major banks when bank funding is unavailable. And we're certainly keen to be kept in mind for funding solutions for those whom the major traditional banking route isn't available. We don't have too many pain points. Most advisors we work with are fantastic. Everyone is trying to do their best for the customer. So, we're really comfortable with our interactions with advisors."
Adrienne Begbie
Managing Director at non-bank lender Prospa New Zealand
"We work closely with advisors in both [New Zealand and Australia]. Seventy percent of my business comes through advisors. We work really closely with our advisors. And we don't really have pain points. We have really good turnaround times. We don't deal with paperwork. Advisers spot and refer; they identify that there's an opportunity and send it through to us. So we don't really have a lot of friction. Working closely with advisers makes communication better, and it shows them that they can have a customer for life. So it's not just about the home loan; it's not just about the insurance. It's about an adviser helping a borrower with their whole financial wellbeing."
