Nadine: What do you see as the biggest problem or challenge in the industry right now and what do you think that you or brokers can do about it?
Leah: In the current environment I really see that uncertainty is one of the most amazing challenges facing the industry. At a time when remuneration is under review and the results of the Royal Commission have put a lot of uncertainty into people’s businesses, it’s quite difficult for some members to focus on growing their business at the same time as advocating for their income streams.
Nadine: Yeah. for sure. Things that they could do to alleviate this issue?
Leah: I think it’s important to continue the advocacy and to continue strong in pre-election times as well as post-election to make sure that their elected representatives and any candidates really understand the value proposition that brokers bring to the industry. And making sure that they’re educating them around that piece about competition and access to credit, particularly in regional areas and for small businesses.
So I think that education is combined with that advocacy to make sure that whoever takes government is informed and understands the industry deeply before making any decisions. So I think that’s the first track that brokers need to focus on.
And I think the second track is then building, strengthening, and growing their business. At a time when there is disruption, it can be really beneficial to review your practices, take a good look at what happens inside of your business, and make sure that you are achieving the best practice.
The other thing I suppose is to use social media and digital marketing to be able to retell the story and make sure that your clients and the general public whoa aren’t using the broker channel actually have an understanding of what goes on day to day in that education piece that brokers are a part of with their clients.
Nadine: Yup. So, along with creating a unique solution and showing that to their client. Also continuing with #BrokerBehindYou and you know, maybe tying that in to strengthen the industry kind of as a whole in the way that people see it in that marketing space?
Leah: Absolutely. The campaign has been really effective so far. But I know from the numbers that there are a lot more clients out there that haven’t participated in the campaign. And I think that once there is some success and we’ve seen some changes in the policy positions. So once there is some success, people can take their foot off that pedal. I think it’s important now to continue that advocacy and continue that education because you know, that message hasn’t been heard loud and clear.
Nadine: Yeah, okay. So, perhaps formalizing their processes then, as well?
Leah: Yeah look, I think formalizing process and like I said having a really deep look at your business practices and making sure that those things that you do as matter of course, are actually documented. And if finance brokers, if I can see any improvement needed in the skills areas and in the education of becoming a finance broker, it’s actually about documenting the rationale, and documenting the processes that you go through in order to make an educated recommendation to your clients.
So that’s something that’s been done in the past by feel and be done by through your knowledge, it’s been done naturally. But actually documenting the rationale and whether there is or isn’t a best practice duty that arises, with the legal definition, how do you then actually document how you came to that conclusion and where in such did you came from?
So I think that’s a really important skill. It’s to increase broker education in those areas so they how to justify the recommendation that they’ve made and ensure that they keep those best practices through their document-keeping so that they can never be questioned.
Nadine: Yeah and because then, they’re at all times compliant anyway.
Leah: Yeah, absolutely. So as well in the background of the NCCP. So those questions that the brokers are asking, they have the information at hand in order to then turn that into recommendation. But what’s been missing, I feel, is a bit of a missing link of, if then, how did you get to that recommendation? What were the most important factors that came from that research which led you to match with that product.
Nadine: Yeah. Okay, awesome.