While the retention of clients by lenders has been one of the Summer’s hottest topics and continues to occupy the thinking of all within the industry going into quarter four, there has been another retention story which has filled the column inches in 2006.
The retention of appointed representatives (ARs) by networks, or to be more precise, the movement of ARs, has also been an issue that has raised a fair amount of controversy.
This is set to continue as mortgage networks pursue aggressive recruitment strategies and ARs look to get the best service proposition available.
Tony Jones, managing director of Pink Home Loans, says: “A lot of ARs are assessing the service they get from their network as some are not delivering on this front. Some are shopping around to find the best options and they are now looking more long-term as many networks won’t be around in six to 12 months’ time.”
Therefore, it isn’t just service issues which are driving this movement but the spectre of the Financial Services Authority (FSA).
The FSA has already promised to get tough with networks and has shown its teeth by barring four from recruiting earlier this year.
With further thematic reviews on issues such as quality of service due, this scrutiny is set to increase and ARs will always have the best interests of their own business in sight; meaning loyalty to one network is not a given.
Therefore, with this and further consolidation widely expected in the network sector over the next 12 months, the issue of AR movement is set to remain high on the agenda.
Jones adds: “It will continue to be a key issue. There are 20-odd networks now but this should be halved in the next year so there will be plenty of movement to come among ARs.”
