What do lenders need to invest in?

Lender options for advisers have been increasing substantially over the past several years, and, according to non-bank Pepper Money, the home loan process is becoming more time-intensive for advisers.

National sales manager Michelle Sargent said that advisers have their work cut out for them when it comes to keeping track of home loan options, particularly when they are also trying to build solid relationships with clients and build trust. She said it has therefore become vital for lenders to invest in the right technology, and to support their adviser channels through simple and quick processes and good education around lender options.

“One of the key challenges for advisers is time - time to invest in building that relationship with their customer first,” Sargent said.

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“They need to get to know them, get to know their families, and they need to understand their situation, their goals and their ambitions. All of that is before they can start to talk about themselves, what they can do, and how they are there to help them. That is a very lengthy process, and this is what relationships are about, and it’s why we want to work with mortgage advisers and the industry.”

“We want to be able to allow our advisers to do that, and one of the key challenges for them is simply having the time to do it,” she explained.

“They then have the next step of finding the solution that best suits the needs of that individual family or individual. When you think about the number of lenders that they’ve got to work with to find those solutions, that all takes time, and when you’re thinking about what the return is for that family, having that relationship is absolutely key.”

Sargent noted that with mainstream lenders and non-bank lenders combined, advisers now have over 60 niches and products to remember for different lenders. She said that keeping track of what lenders offer without a strong tech platform can be a significant challenge, and lenders need to ensure that they have a strong support system in place for advisers to get deals through quickly and efficiently.

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“As an industry, that’s why we continue to invest in educating financial advisers, and why we have great BDMs on the road, sales staff on the phones, and relationship managers ready to guide the advisers through the process of a home loan,” Sargent said.

“We need to ensure that we invest in technology, because if we want to take away the confusion or lack of understanding around non-bank lenders, then the best way to do that is to educate through technology. We need to make sure it’s sharp, quick, and adaptable to each individual customer’s situation.”