The last few years have seen massive changes in the mortgage industry, and these changes are creating exiting opportunities for both lenders and brokers.
Networks have had to rapidly adapt to the ever evolving market, with technological and compliance issues, in addition to issues affecting regulation.
They have had to become a much broader beast, offering more than a channel for intermediaries to source independent, exclusive deals. They now provide a one-stop shop for appointed representatives (ARs), with a number of networks also opening their doors to directly authorised (DA) intermediaries.
John Smith, Sales and Marketing Director at GHL Group, believes that 2007 will see the network at the forefront of technology and e-commerce solutions, providing a first class service.
He said: “I think the market sees us as a very clean, level headed network. We do things in the right order, without cutting corners. We’re not interested in being the biggest network, what we want is quality advisors.”
A strong emphasis has been placed on ensuring that both the broker and their clients receive the highest quality of service possible, in a professional, personal and friendly manner.
This has become something of a GHL Group mission statement and one that is reflected in the commitment and resources invested in providing the ongoing development of both their staff and the group website.
Smith explains: “The lack of investment in technology will see many networks struggle to keep up to speed with the pace setters in our sector. Recent years have seen an enormous appetite for IT and e-commerce solutions that will only grow stronger through 2007.
“Ongoing pressure will be felt by the smaller directly authorised firms with the FSA starting to flex their muscles in a bid to raise the bar further in protecting the consumer. It has been no secret that smaller firms have struggled with RMAR reporting and with the implementation of TCF due by the end of March. Many of these firms may concede that they require the help of a well organised compliance team behind them and seek shelter from a network.”
GHL invested a significant amount of time during 2006 to improve its overall customer service offering with the use of technology. Recently appointed Sandi Moon will further develop this throughout 2007, and build on the networks’ service reputation.
Smith said: “We have taken considerable time in looking for the right operations director and interviewed varying individuals. Sandi, however, fit the bill perfectly. She is a firm believer in people, job satisfaction and customer service. Last year we invested a lot of time improving processes and customer service and Sandi can now use the foundation we laid to make an even bigger difference in a forward direction for GHL.”
Under pressure
Following the introduction of the FSAs ‘Treating Customers Fairly’ regulations, extra pressures are being put on the industry.
There are several pressures that continue to fuel consolidation throughout 2007, with the housing market being the obvious one. Other pressures may include implementing and maintaining principle based regulation along with embracing and embedding TCF.
Smith explained: “There are going to be pressures this year with regards to embedding TCF that our advisors have to get to grips with.”
Looking to the future of the market, and the FSAs possible targets for greater involvement, Smith highlighted the self-cert and non-conforming markets as possible areas of action for the regulator. “There has been a lot of talk the last few weeks about PPI, but I think the FSA review of the self-cert market will highlight its future movements and how much time it has to devote to this. Mortgages into retirement and interest only are other areas that the FSA must devote attention to.”
With much focus on the area of financial promotions, for the one and two man bands, complying with all of the FSA regulations would be a tough, but not unachievable target. “For sole brokers and small firms it must be tough staying on top of the ever changing regulatory changes, and any time spent looking after this side means that they are taken away from their job of selling.”
Looking to the future
Since the merger in 2005, GHL has grown considerably and to cement their one year anniversary they launched a new corporate identity to encapsulate their strategy moving forward into 2007 and beyond.
