Consolidation seems to be the buzz word for the industry at the moment. In the current conditions it is easy to get disconsolate and look at the doom and gloom, rather than the opportunities that exist, and through networks, advisers have a useful resource to draw upon.
In the current market conditions many advisers, not to mention lenders, are wary of what the future holds. Falling house prices, an increase in repossessions and product withdrawals and changes have all helped to shake the foundations of the sector, but the truth is that opportunities still remain.
Due to the continuing credit crisis that is forcing many lenders to reassess their offering, networks are perhaps much better placed and have greater sway than individual adviser firms when commenting on deals.
This is because larger organisation networks have more clout and have relationships with lenders that will be all important in the coming months.
Through networks, advisers might also be able to better navigate the market – although lenders’ decision to pull rates at short notice will undoubtedly bite many in the market.
Compliance controls will also be all important in the coming months, with the regulator continuing its ‘Treating Customers Fairly’ drive and its move towards principles-based regulation. This will mean that more firms will use networks as a valuable crutch when looking at what they need to do to meet the Financial Services Authority’s (FSA) rulings.
It’s good to talk
Network conferences are also an invaluable source of information and guidance. As well as providing seminars on what to expect from the respective network over the next year or so, conferences also give brokers the chance to catch up with others in a similar position to themselves.
It is opportunities like this that will show just how the market is faring and give attendees the chance to quiz the network itself, as well as their peers on exactly what the future holds for their industry and business.
Network Data has confirmed that it will be reviewing 2007 as well as giving an outline of the planned developments for 2008. Smartflow will also be outlining the opportunities in the commercial sector and with the commercial market continuing its growth, it is expected that more networks might dip their toes into this niche.
Other networks have moved to reassess their offering, with Premier Network Group launching The Mortgage State and The Mortgage Planner, aimed at those looking at franchise opportunities or those currently operating as self-employed brokers. As part of The Mortgage Planner initiative, mortgage intermediaries will be placed within an estate agency and will be able to obtain a percentage of commission.
It is initiatives like this that might see the market evolve rather than stagnate and to make the most of the opportunities mortgage intermediaries and networks need to stay on their toes.
