MPAMAGAZINE.COM.AU ISSUE 20.07
SHAKING THINGS UP
The CEO of 86 400 explains why Australia needed a new smartbank and why it will stick to brokers BROKERS ON AGGREGATORS Meet this year’s winning aggregators in MPA’s annual survey of brokers
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TOP BDMS Insights into some of the best BDMs helping brokers stay on track
SPECIALIST LENDING The opportunities for brokers to offer alternative finance keep growing
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MPA -Full Page (w) 210mm x (h) 268mm
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JULY 2020
CONNECT WITH US
CONTENTS
16
A brighter outlook
04 Statistics
Opportunities for brokers
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06 Head to head
FEATURES
10 Opinion
08 News analysis
The impact of the HomeBuilder scheme Understanding the construction package
FEATURES Why excellence is a poor standard of success
BROKERS ON AGGREGATORS
MPA's annual survey shows where the aggregators are doing well in the eyes of brokers
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Have aggregators done enough?
44 Work-life balance
SPECIAL REPORT
The CEO of 86 400 explains how the smartbank is helping Australians take control of their money
facebook.com/Mortgage ProfessionalAU
02 Editorial
The BDMs who are supporting brokers through thick and thin
ROBERT BELL
twitter.com/MPA_Australia
UPFRONT
TOP BDMS
BIG INTERVIEW
Got a story or suggestion, or just want to find out some more information?
48 Wellbeing
The future of work and wellbeing in the wake of the pandemic
38
FEATURES
SPECIALIST LENDING
The many ways to help borrowers who need an extra hand
50 Workplace culture
There’s never been a better time to reflect on cultural change
PEOPLE 52 Brokerage insight
Meet the team at The Loan Lounge
54 Career path
From mortgage broker to national partnerships manager
56 Other life
Beekeeping on the Surf Coast
42 FEATURES
COSTLY MISTAKES Why it’s important to protect yourself against insurance claims
MPAMAGAZINE.COM.AU NOW ONLINE: Our daily newsletter. Keep on top of property market trends, business strategy, and what industry leaders have to say.
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UPFRONT
EDITOR’S LETTER www.mpamagazine.com.au JULY 2020
Time to open the doors
A
s Australia begins to open up again and I emerge out of my front door like an animal after hibernation, I can’t help but feel grateful to be living here. I have family and friends on the other side of the world who are still uncertain about what the future looks like, surrounded by vast numbers of infections. But here, with such low infection rates we can start getting out and putting money back into the economy. I lived in the UK during the GFC, and while I myself – working in my first job at the local council – wasn’t much affected, I watched high streets slowly close around me and family members lose jobs. Thankfully, figures from Commonwealth Bank have predicted that the recovery of the Australian economy is looking positive as household spending jumps upwards. Hopefully this means you are all seeing increased activity as well and pretty soon we can begin to get together again. In the meantime, I’ve been gauging broker sentiment through the only means I have right now: website comments, social media and MPA’s surveys.
EDITORIAL
SALES & MARKETING
Editor Rebecca Pike
National Sales Manager Claire Tan
Journalist Tom Goodwin
Global Head of Communications Adrijana Monevska
Contributors Andrew Clugston, Mark McCrindle, Fiona Robertson
CORPORATE
Production Editor Roslyn Meredith
Chief Executive Officer Mike Shipley
ART & PRODUCTION
Chief Operating Officer George Walmsley
Designer Cess Rodriguez Traffic Coordinator Kristine Jamir
Managing Director Justin Kennedy Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil
EDITORIAL ENQUIRIES
tel: +612 8437 4784 rebecca.pike@keymedia.com
SUBSCRIPTION ENQUIRIES
tel: +61 2 8311 5831 • fax: +61 2 8437 4753 subscriptions@keymedia.com.au
ADVERTISING ENQUIRIES claire.tan@keymedia.com
Hopefully you are all seeing increased activity and pretty soon we can begin to get together again In around mid-April we launched our annual Brokers on Aggregators survey. I wasn’t sure what to expect from the results as it was just a month after Australia essentially shut down, but it was really nice to see how positive brokers were about their aggregators. As featured in June’s issue of MPA, I spoke to eight aggregators in May about what they were doing for brokers. After hearing about their quick pivots to virtual events and training, plus all the extra communication they were sending out and their innovative ways of networking, it was really great to know it was appreciated by brokers. You can read more about the areas brokers praised in our Brokers on Aggregators report (page 16). Also this month we take a look at some of the industry’s best BDMs to find out what makes them stand out. It’s not often I get to talk to BDMs, so this feature each year is a really great way to hear more about their role and why they love it so much! Thanks to all the BDMs who took part and to everyone else who was involved in this magazine. I hope you enjoy it. Rebecca Pike, editor, MPA
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Key Media Regional head office Level 10, 1–9 Chandos St, St Leonards, NSW 2065, Australia tel: +61 2 8437 4700 • fax: +61 2 9439 4599 www.keymedia.com Offices in Sydney, Auckland, Denver, London, Toronto, Manila, Singapore, Seoul
Mortgage Professional Australia is part of an international family of B2B publications and websites for the mortgage industry CANADIAN MORTGAGE PROFESSIONAL neil.sharma@kmimedia.ca T +1 416 644 8740
Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as the magazine can accept no responsibility for loss.
www.mpamagazine.com.au
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UPFRONT
STATISTICS
Opportunities for brokers
268
Do not use a business broker but have done so in the past
111
Do not use a business broker and have never done so
Brokers’ avenues for growth post-pandemic are likely to be in refinancing and the SME market WITH THE coronavirus pandemic having had a big impact on both home loan and SME borrowers, brokers need to look for the opportunities that are still out there. While the current property market may not be ideal for taking out a new mortgage, research shows that brokers are expecting refinances to increase. In fact, more than 77% believe this is where the most profit is going to come from in 2020. “There’s a lot of pressure on mortgage brokers, so we sincerely hope these avenues of
growth come through,” says HashChing CEO Arun Maharaj. Refinances are not the only opportunity for brokers; SMEs are also looking for assistance. Many have sought finance as a result of reduced business, while others have done so because their business has increased. According to a survey by Scottish Pacific, SMEs value a broker relationship, and they currently need help with accessing new finance, refinancing, as well as buying assets and equipment.
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73% of brokers believe the RBA rate will last for 12 months
55.56% of brokers have seen an increase in refinances
16.6% of SMEs want to use a non-bank lender
9 in 10 SMEs borrow against
Advice on major acquisitions
personal property
Source: HashChing; Scottish Pacific SME Growth Index
A BOOST IN REFINANCES
A larger proportion of brokers are noticing an increase in the number of customers looking to refinance their homes since the start of the pandemic.
STILL POTENTIAL FOR PROFIT With expectations of slowing demand for home loans thanks to COVID-19, more than three quarters of brokers believe refinancing is where they will profit this year.
55.56%
77.27%
Yes – I’ve seen an increase
Have you seen an increase in customers looking to refinance their homes since the outbreak of COVID-19 and the drop in interest rates?
22.73%
No – we don’t see refinancing growth taking place
Is refinancing by Australians the best chance for mortgage brokers to have a profitable 2020?
Yes – we see an increase in refinancing as the best source of growth
44.44%
No – I haven’t seen an increase Source: HashChing
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Source: HashChing
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WHAT ROLES DO BUSINESS BROKERS PERFORM FOR YOUR BUSINESS?
SMES TURNING TO BROKERS
N count: Whole SME market (N: 1256)
Four in 10 SMEs turn to brokers for help with sourcing new finance, according to Scottish Pacific’s SME Growth Index. One in five do not currently use a commercial broker but have done so in the past; less than one in 10 SMEs said they had never used a broker. Almost nine in 10 of those who have used a broker reported no negative issues.
442
500
Refinancing
New finance
103
Advice on selling the business
662
Buying/selling assets/plant and equipment
131
Shopping around only (price discovery) Note: Sums to over N count due to multiple responding allowed. Note: No statistically significant variance by state, industry sector or primary working capital provider Source: Scottish Pacific SME Growth Index, June 2020
FIRST HOME BUYERS TO BENEFIT
Almost 60% of brokers believe FHBs will come out on top due to COVID-19, and HashChing says this could put brokers’ digital customer acquisition skills to the test.
59.09%
First home buyers
Despite a 20% year-on-year increase in the value of new settlements in the January to March quarter of 2020, broker market share fell to 52.1%. 60% 59.1% 50%
34.09% Domestic investors
BROKER MARKET SHARE DROPS
Which of the following buying groups will benefit most from the coronavirus disruption?
56.8%
59.7%
55.8%
54.9%
55.3%
Apr–Jun 2019
Jul–Sep 2019
Oct–Dec 2019
52.1%
40% 30% 20% 10%
6.82% Foreign investors
0% Jul–Sep 2018 Source: HashChing
Oct–Dec 2018
Jan–Mar 2019
Jan–Mar 2020
Source: MFAA Industry Intelligence Service, 9th Edition
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UPFRONT
HEAD TO HEAD
How has your aggregator supported you this year? Education has been key for brokers as they navigate the changing environment due to COVID-19
Nathaniel Truong Director The Loan Lounge
“At the onset of COVID-19, we started to collect lender interview and ID requirements for each lender as everything was changing so quickly. When our BDM heard about this, Finsure took on the responsibility of collecting the different lender processes and spreading it to the network. I saw that as a great example of collaboration and meeting brokers’ needs during a stressful time. I have also seen an increase in communication from BDMs and a great training initiative by the Finsure Broker Academy called the ‘Festival of Learning’, which offered multiple courses over a two-week period on wellness, managing stress, compliance and lender-specific policies.”
Grace Gardner Mortgage broker Aussie Home Loans
“Aussie has been an incredible provider of support and guidance throughout the COVID-19 situation. They acted quickly and positively to provide an abundance of information to assist brokers through a new way of working, whilst also taking the time to check in with us to find out how we were going personally. I personally found that Aussie’s support helped me to adapt smoothly to changes and offered me a sounding board for how to help customers, both new and existing, through a tough time.”
Florentin Ciritel
Finance and broking manager Multi-Choice Home Loans “AFG has been phenomenal in providing education and support on what the industry is able to offer now through things that are automated, and you need to automate as many things as you can so you can better focus on your clients’ objectives. You don’t want to be stuck in your business; you want to be always working on your business, and I think they’ve done well in that respect. “The support on the educational side, the marketing material provided on the websites, has been phenomenal – so much so that I’ve already exceeded the amount of education I need to do for the whole year in the first three months.”
THE NEED FOR BALANCE FBAA managing director Peter White says the industry body has completely changed the delivery of educational content due to COVID-19. “All of our content is done digitally through webinars,” White says. “We’ve had fantastic engagement with our members in this manner, in that the amount of people we’re reaching now that are attending is higher than when we were in a face-to-face mechanism.” While these platforms allow for interactive engagement as attendees can ask questions or raise issues, the mode of delivery isn’t quite the same as having physical contact. When social distancing is a thing of the past, the new normal for the FBAA will be a blend of digital content and physical interaction – a balance White anticipates for the mortgage broking industry in general.
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MoneyQuest - Camberwell
MoneyQuest - Wollongong
MoneyQuest - Essendon
What I have enjoyed most about MoneyQuest has been the support from the whole team – compliance, marketing, business development and coaching...EVERTHING is taken care of. There is also great camaraderie between franchisees which works really well in discussing ideas and workshopping deals. I feel that we got on board just at the right time as the MoneyQuest brand is growing very quickly.
When you operate a business you want to work alongside people that you know have your back and care about you as a person, not just the success of the business. The MoneyQuest team cares and it feels like one big happy family.
It is a delight being part of what I call the MoneyQuest family. The support is enormous and there is always someone to call on for help. At MoneyQuest Essendon, we are grateful to have the marketing team constantly working behind the scenes supporting and promoting our brand. This helps us tremendously as our days are consumed with doing what we love which is helping our clients with their lending requirements.
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Thank you MoneyQuest. - G�r�� P������
MoneyQuest - Geelong I love MoneyQuest! Three years ago I made the decision to change aggregator. I consider it to be one of the best business decisions I’ve ever MoneyQuest - Penrith made. Everyone at MoneyQuest is friendly, Our transition into MoneyQuest was MoneyQuest - Balwyn supportive, professional and just great seamless and I am thoroughly enjoying As small business owners, we decided to value. Whether I’m wanting to bounce being a part of a smaller organisation, but marketing ideas off someone, workshop a write our own story and be captains of our one with big aspirations for their own destinies. As members of deal or even just in need of a graphic franchisees. Nothing is ever too difficult MoneyQuest, we have never felt small or design, there is always a multitude of or too much trouble from compliance and alone. Help and support are never more people happy to step forward. IT, to marketing your business, they have than a phone call away. We are part of There is nowhere else I’d rather be! people to support you. As a broker all you something bigger, the MoneyQuest family. need do is get in front of more clients! - S�r�� Ma���� - M�� C��� & S�ot� S�n� - P�it� D���e�
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UPFRONT
NEWS ANALYSIS
Flaws in new scheme raise eyebrows There has already been a spike in enquiries since the announcement of the HomeBuilder grant, but is it going to have the desired effect? WHILE THE HomeBuilder scheme introduced by the government is already seeing interest and has been welcomed by many, there are concerns that the effect of the stimulus may not meet expectations. The government announced its $688m HomeBuilder grant in June, offering select owner-occupiers $25,000 towards the cost of building or renovating a property by the end of 2020. According to the government fact sheet, “HomeBuilder is a time-limited grant program to help the residential construction market to bounce back from the coronavirus crisis”. HomeBuilder complements Australia’s First Home Loan Deposit Scheme and First Home Super Saver Scheme, as well as existing state and territory first home owner grant programs, stamp duty concessions and other grants, and data shows an increase in enquiries from first home buyers. Aussie CEO James Symond welcomed the HomeBuilder scheme but said it was important for potentially eligible borrowers to speak to brokers to understand their finance options, particularly considering the range of conditions and timelines imposed by the grants. He said Aussie brokers had experience with schemes like this and could take the time to get to know a customer’s specific situation and decide whether this option was right for them. “It’s important for eligible customers not to hesitate, but also not to rush in without
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understanding their financing options. Taking up the scheme could involve refinancing, which brokers can help customers navigate,” Symond said. “Since the HomeBuilder scheme was announced, we have seen a spike in enquiries from first home buyers, and those who have already been saving for a deposit and are primed to buy are likely to commit to a property purchase within the next six months.” Mortgage Choice also saw a “surge” in
stand the scheme, warning that a rush to make decisions could leave borrowers worse off. “The last thing we want is for borrowers to be left short of funds because they expected the grant, or the customer doesn’t qualify for a
“Customers run the risk of rushing into land contracts because of a limited supply of opportunities without all the facts” Susan Mitchell, Mortgage Choice enquiries after the scheme was announced. CEO Susan Mitchell said based on the interest so far “the scheme will be in high demand”, but it was hard to say what the impact would be. “The scheme has been designed to stimulate the economy and construction in the short term, but we don’t see it having a long-run impact on demand for property other than bringing some consumer demand forward,” Mitchell said. She added that brokers would play an important role in helping borrowers under-
sufficient loan amount to complete the build.” With lenders’ loan processing times backing up, Mitchell said brokers may also need to recommend lenders based on the customer’s exact situation. If a borrower needs to transact quickly and secure land sooner rather than later, brokers will need to find a lender that can turn the application around fast enough. “The other issue with the tight time frame is that customers run the risk of rushing into land contracts because of a limited supply of opportunities without all the facts,” she added.
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HOMEBUILDER CRITERIA To access the HomeBuilder grant, owner-occupiers must meet the following eligibility criteria: • You are a natural person (not a company or trust) • You are aged 18 years or older • You are an Australian citizen • You meet one of the following two income caps: » $125,000 per annum for an individual applicant based on your 2018/19 tax return or later; or » $200,000 per annum for a couple based on both 2018/19 tax returns or later • You enter into a building contract between 4 June 2020 and 31 December 2020 to either: » build a new home as a principal place of residence, where its value does not exceed $750,000; or » substantially renovate your existing home as a principal place of residence, where the renovation contract is between $150,000 and $750,000, and where the value of your existing property does not exceed $1.5m • Construction must commence within three months of the contract date
“We could also see prices rise on existing land packages available for sale, and customers who were in approved build contracts before the government announcement may be reconsidering their previous plans to build
planning a knock-down/rebuild in the inner suburbs”, where property values tended to be over the $750,000 limit. Additionally, the minimum cost of $150,000 was too high for everyday Australians who weren’t already
“Where this policy may create additional construction lies in the fact that it is pivoting decision-making from established property to new housing” Eliza Owen, CoreLogic and seek alternate pathways to now qualify for the scheme.” In a recent post, property expert Michael Yardney also commented on the short time frame being a flaw. “While I appreciate what the government is trying to do in kick-starting the construction industry to help the economy bounce back, the reality of building and renovating is that it’s never a quick or easy process,” he said. Beyond the time limits, Yardney said the scheme also missed the mark for “those
planning a significant renovation. “A $150,000 outlay is not just the budget for an updated kitchen and bathroom; it’s a large-scale renovation or, more likely, a dramatic extension,” Yardney added. “I have a feeling that these projects will be in the minority, and new builds will make up most of the HomeBuilder recipients, which would be much better for the economy and the housing crisis.” CoreLogic has looked at the HomeBuilder scheme to see what the impact might really be.
With one of the grant’s criteria being that the value of a property to be renovated must not exceed $1.5m and it must also be owneroccupied, CoreLogic estimates that there are around 4.4 million owner-occupied homes across Australia with a high confidence valuation below $1.5m, but the government says the scheme may only support about 7,000 renovations. Echoing the comments of Yardney and Mitchell, CoreLogic’s head of research Australia, Eliza Owen, said many had noted that the policy would largely create stimulus for those who were planning to build or renovate anyway. So, instead of creating additional work, it may just bring it forward, producing what Owen called “a vacuum effect”. “It reflects a surge in buyer activity soon after housing grants are made available and a significant drop in activity thereafter,” she said. “The implication is that rather than stimulating sustained new demand, stimulus is simply bringing forward activity to a certain date, where it would likely have occurred over time anyway.” She added, “However, where this policy may create additional construction lies in the fact that it is pivoting decision-making from established property to new housing, likely to be skewed towards house and land projects.”
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UPFRONT
OPINION
GOT AN OPINION THAT COUNTS? Email rebecca.pike@keymedia.com
Pros and cons of the grants for homebuilders Following the government’s announcement of the homebuilder grants, Andrew Clugston says it’s clear where the broking industry’s focus needs to be ON 4 JUNE, the federal government officially pulled the covers off its construction stimulus package – a measure designed to create a pipeline of work for the building sector, ensuring jobs for the trades to help stave off the impact of COVID-19. After several days of speculation on what the package might include, it was announced that it would take the shape of $25,000 homebuilder grants to eligible Australians. These could be used towards renovations of existing properties or construction of new homes. Of course, there are conditions attached. In order to qualify for the grants, applicants need to meet key criteria, with the essentials being: • Single applicants must earn $125,000 a year or less, and couples under $200,000. • Building contracts must be executed between 4 June and 31 December 2020. • New home builds must be for a principal place of residence valued at up to $750,000, and renovations to an existing property must be valued between $150,000 and $750,000. • Existing properties must be worth less than $1.5m prior to renovating, and construction must be contracted to commence within three months of the contract date. Additionally, the grants can’t be used for investment properties, or for pools, tennis courts, spas and saunas, detached sheds or garages, and given that they are designed to create and support jobs for the trades, they’re not available to owner-builders.
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All up, the uncapped program is expected to cost taxpayers some $688m. That’s well short of the $13.2bn package proposed by Master Builders Australia, but it has still been broadly welcomed by the building and wider property industry in the face of a predicted 50% slump in new dwellings by the end of this year.
get finance approved, and get the required building and development approvals. Smaller renovation jobs that could be taken up more quickly – say a laundry or bathroom – won’t meet the $150,000 floor required. Chances are this means a lot of smaller, familyowned trades or sole operators that would have picked up this sort of work and got stuck in straight away will miss out. If we look at new home builds, we are likely to see more action. There’s a good chance the offer of a $25,000 contribution to building progress payments – especially when combined with existing regional and first home buyer offers on a state level – will encourage people who are considering taking the plunge on a new home to come off the bench and sign up. There has been speculation that the grants could drive up housing prices and construction costs, but given the tight time frame to get moving, the pain already felt in the industry and the temporary nature of these grants, it’s hard to see that happening. For brokers, it’s clear where the focus needs
Renovators are likely to draw down against existing facilities rather than seek new financing, so new builds are going to be where the action is Just one day before the stimulus announcement, the March quarter national accounts showed dwelling investments in Australia fell 2.9% in the first three months of 2020 and by more than 15% over the past year. That figure is expected to be worse in the June quarter. The question the sector is asking is, “will this package have the desired effect?” While intentions are good, it is fair to say the approach has caused some confusion. Although means testing applicants would make sense if the aim was to support affordability and better access to housing, it is less clear why you would apply it to a stimulus designed to generate activity and employment. The reality is that those most likely to spend on a renovation – particularly at a minimum value of $150,000 – are higher income earners with more disposable income. Renovations costing upwards of $150,000 aren’t small projects. They take time to plan,
to be. Renovators are likely to draw down against existing facilities rather than seek new financing, so new builds are going to be where the action is, especially for first home buyers. Tight time frames mean apartment and townhouse developments are not likely to make the cut, which is disappointing, but it does make it clear where your business will be coming from. Focus your marketing on house and land packages, in particular greenfield land subdivisions in outer metro or regional areas of your state. It’s there that we’re likely to see this package have the most impact and generate the most activity for the broking industry. Andrew Clugston is a partner in the Business Advisory and Assurance Division of Pitcher Partners Melbourne. He has extensive experience in advising clients across a broad range of industries, including specialising in the property and construction industry.
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29/06/2020 1:08:34 PM
PEOPLE
BIG INTERVIEW
ROBERT BELL: A BRIGHT FUTURE FOR FINTECH The CEO of 86 400 talks to MPA about why there was a need for a smartbank in the Australian lending market, and why the fintech is making sure it sticks to using brokers exclusively
IT WAS a recognition of the difficulty that Australians were facing in keeping on top of their money that led to the birth of smartbank 86 400. When asked whether Australia really needed another bank to add to the plethora already out there, CEO Robert Bell says, “Not if it’s going to be the same as every other bank.” But a bank that looks different, behaves differently, provides different products and services and offers a better customer experience, all while being digital – that’s a bank Australia needs, he says. 86 400 was granted its banking licence in July 2019, about a year after its public launch. Bell was involved right from the digital bank’s inception. He came to 86 400 with years of experience in banking – including in CEO roles at ANZ in Japan and the Pacific – as well as with a passion for the role that technology can play.
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“The opportunity to build a brand-new bank from scratch, from the original design based on the customer proposition to getting the banking licence and launching – I’ve not
bank with more than one bank, whether for bank accounts, credit cards or home loans. “Straightaway banking has become more complicated because you’ve got multiple
“We set out about building a bank with a mission to help Australians take control” had a more rewarding or more challenging role in my career so far,” Bell says.
Helping customers take control Bell was working at payments company Cuscal, which came up with the idea for the bank, and was involved in working on the business case. When he was carrying out research into what the bank would look like, Bell says three things jumped out. The first was that Australians tended to
banking relationships,” Bell explains. The second was that there is now more money automatically coming out of people’s accounts than ever before, with subscription services, memberships and other direct debits. The third was that, with the option to tap and pay, people are less aware of what they’re spending and there are now more transactions in a day than ever before. “The combination of those three things meant that people don’t feel in control of
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PROFILE Name: Robert Bell Company: 86 400 Title: CEO Years in the industry: 20 Career highlight: “Launching 86 400 into the market. I mean very few people in their lives get an opportunity to build a bank from scratch, get a banking licence and launch it.” Career challenge: “I was CEO of an Australian bank in Japan during the earthquakes, tsunami and subsequent nuclear crisis. Balancing customers’ needs, the wellbeing of staff, the business performance and family considerations was very challenging.”
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PEOPLE
BIG INTERVIEW
their money and often actually feel stressed or worried about money,” Bell says. “So we set about building a bank with a mission to help Australians take control. Our name kind of goes to the heart of that because we wanted to have a bank that helps you look after your money every minute, every second of every day; and there are 86 400 seconds in a day.” To help its customers take back that control, the smartbank allows customers to do things like see all of their balances and transactions for accounts and loans at other banks. It also has a feature called Upcoming Bills that shows customers what outgoings they have coming up. Another feature sends out reminders and alerts to remind customers to put more money into their savings accounts so they can achieve a bonus interest rate.
A unique home loan offering A big part of wanting to help its customers regain control was being able to offer mortgages. 86 400 launched its home loan products in November last year and announced
ABOUT 86 400 86 400 is Australia’s first smartbank, built for smartphones. A bank that shows customers what’s actually going on with their money, so they feel in control every second of every day. All eighty-six four hundred of them. Led by CEO Robert Bell and chaired by Anthony Thomson, 86 400 became a licensed ADI in July 2019 and launched in September 2019. 86 400 enables customers to connect all their accounts (from over 100 financial institutions) in one place, giving them their full financial picture. It uses smart technology to surface the most relevant information about spending, saving and bills so customers can plan forward, as well as look backwards. Australians can open an 86 400 account in just 120 seconds, giving them great rates, no monthly fees, plus instant access to Apple Pay and Google Pay.
“As it stands at the moment, the majority of home loans are written through mortgage brokers, and for good reason” immediately that these would be available exclusively through mortgage brokers. Bell says it may seem “a little strange” that the bank would choose to go through brokers for such a tech solution, but the reason was simple. “As it stands at the moment, the majority of home loans are written through mortgage brokers, and for good reason,” he says. “We’ve used our technology to make the process of applying for a loan really easy for the customer and really easy for the mortgage broker. So they can spend more time doing
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what we think is the most critical part of the mortgage broker’s job, which is chatting to a customer, walking them through their options, helping them understand what they’re doing and getting the best result for them.” Instead of a customer having to ask for physical payslips and statements, or needing to physically go to a branch, the whole process is digital. Documentation is delivered digitally, and the bank’s smart statements process carries out income and expense verification automatically. With around eight million Australians
predominantly using their mobile phones for banking, the need for brokers to adapt to more technological methods is growing. The COVID-19 pandemic has only accelerated the take-up of new technologies and reinforced their importance moving forward. “I think the future for fintech is bright. For those who are like us, who have a solid plan, are well capitalised and can move quickly, it’s a really good time to be in fintech,” Bell says. “I would encourage all brokers to try to use technology. It’s a simple business tool that they can use to be more efficient; to give their customers better service and to be able to service more customers.” Over the last several months, 86 400 has been spending time with brokers, helping them understand how the smartbank works, and has employed a full-time head of broker and four business development managers. During the COVID-19 restrictions it has been able to adapt quickly, continuing to release regular updates to its systems without delays. Being digital already, the fintech has also been able to seamlessly move to working from home and running virtual broker training sessions, meaning it can reach a lot more people much more easily. Bell says the online training sessions have been particularly well attended and that once brokers are accustomed to the system, “they love it”. Using mortgage brokers exclusively for its home loan offering is indicative of the bank’s outlook on the broker industry. Bell says brokers will continue to be “the perfect tool” for customers for a long time to come. “The big banks have these programs about restoring trust. I actually think it’s reasonable for consumers to not trust their banks,” he adds. “It just makes sense for such big transactions to shop around, to get the right product that suits them and the price that suits them. Mortgage brokers are the perfect tool to help customers with that process.”
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© West
29/06/2020 1:41:08 PM
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SPECIAL REPORT
BROKERS ON AGGREGATORS
BROKERS ON AGGREGATORS Brokers have their say on the performance of their aggregators in MPA's annual survey. This year there was extra pressure as aggregators rushed to increase their online tools and training to help brokers stay up to date in the changing COVID-19 environment LAST YEAR’S Brokers on Aggregators survey took place between the release of the royal commission’s final report and the federal election, which meant the results reflected the many frustrations of brokers at a time when it felt like the industry was fighting for survival. That seems an incredibly long time ago now, but 2020’s survey was held during a another time of turmoil and uncertainty. It closed mid-May, two months into the restrictions brought out by the coronavirus pandemic. With COVID-19 putting a stop to many normal business practices and affecting borrower sentiment, brokers had to adapt to a new way of doing things. For some, this simply meant working from home and holding virtual meetings; for others it meant thinking about how they could diversify their revenue streams, and looking at what other products they could offer their borrowers.
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With so many lenders tightening their appetite and changing their processes as they adapted and prepared for a difficult economic journey, aggregators had to step up to make sure brokers were supported. Their schedules for training sessions, PD days and other networking events had to be changed to more digital settings; they launched webinars, virtual networking and online training, and increased their marketing support. The hard work seems to have paid off. The results of this year’s survey paint a very positive picture of how brokers feel about their aggregators. In fact, when asked a hypothetical question on what might make them leave their aggregator, many said they would not even consider it. The list of priorities for brokers has remained fairly consistent with last year’s results. Accurate and on-time commissions
continue to be the most important priority, with a higher score than last year. Compliance support came in second again but with a much higher score, which closed the gap significantly on commissions. It’s no surprise that compliance is becoming more of a priority for brokers, particularly as regulations like the best interests duty draw closer. Lead generation was no longer bottom of the list of priorities this year, and has overtaken aggregators’ white label offerings. This is possibly due to broker sentiment two months into COVID-19, when borrowers were harder to come by. IT and CRM support also moved up a couple of places in importance as the need for online tools and systems became much more necessary. Read on as, over the following pages, we dive into each of these categories and the survey results in more detail.
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OUR TYPICAL RESPONDENT Years in the industry 10% – Less than 2 years
$60m+ $40,000,001–$60m
20% – 2–5 years
6.27% 30.49% 7.84% Settlement volume
17% – 6–10 years
Aged between 46 and 55 (32%)
Resides in VIC (33%), NSW (32%) or QLD (19%)
$0–$10m
26.83%
31% – 10–20 years $20,000,001–$40m
28.57%
22% – Over 20 years $10,000,001–$20m
WHAT DO BROKERS WANT? 1 = not important; 5 = very important 4.77
Accurate and on-time commission payments Compliance support
4.71
Quality of lending panel
4.69
IT and CRM support
4.67
Communication with brokers
4.55
BDM support
4.49
Training and education
4.47 4.10
Additional income streams
3.95
Marketing support Lead generation White label offering
3.30 3.23
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SPECIAL REPORT
BROKERS ON AGGREGATORS
BROKERS’ TOP PRIORITIES Certain areas of an aggregator’s support have become much more important to brokers over the past year, and particularly in the last six months
HOW LIKELY ARE YOU TO CHANGE AGGREGATORS IN THE NEXT 12 MONTHS? Extremely likely 4.53% Likely 3.48% Neutral 4.36%
Extremely unlikely 82.58% Unlikely 5.05%
IN A year of somewhat increased pressure on aggregators to support their broker members, it is pleasing to see that there has been little change in the proportion of brokers who are considering leaving their aggregators. In fact, in this year's survey, 2% more brokers said it was extremely unlikely they would leave their aggregator in the next 12 months. While brokers contend with changing property markets and lenders tighten their appetites as they deal with the fallout from COVID-19 as well as anxious customers who are trying to put their mortgages on hold, aggregators have been working away behind the scenes to ensure stability. In particular, they had to ensure that brokers continued to be paid trail on loans,
TOP 5 REASONS TO LEAVE YOUR AGGREGATOR Poor IT and CRM support
60% 59.6%
Poor accuracy and timeliness of commission payments Poor compliance support
53% 48%
Poor BDM support Poor communication with brokers
44%
Note: Percentages do not add up to 100 as respondents could select multiple options
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and they had to keep on top of all changes to lender policies so brokers had all the up-todate information they needed. A telling sign of the times is found in the reasons brokers said they would consider leaving their aggregator. The top reason this year was if the aggregator gave poor IT and CRM support, with 60% of brokers saying this would cause them to leave. IT and CRM support was the fourth most important category for brokers in 2020, out of the 11 areas the survey observes – up from seventh most important last year.
Aggregators have been working away behind the scenes to ensure stability Poor compliance support remains in the top five reasons to leave, as well as accuracy and timeliness of commission payments and poor BDM support. These are all areas that have been front of mind for brokers over the last couple of years, as commissions have come under scrutiny and policy and market changes have become more consistent since 2015. This year sees a new reason to leave an aggregator enter the top five, however. Almost 45% of brokers said they would leave because of poor communication, which replaced the usual reason given: poor quality of lending panel. It’s no surprise that communication has attracted a greater number of votes this year, as it has become an imperative during the COVID-19 pandemic. Taking out gold medals in 2020 for communication as well as IT and CRM support, Loan Market is almost certain to keep a hold of its members over the year ahead.
HIGHLIGHTS: SERVICE AND SUPPORT BDM support
MoneyQuest
Liberty Network Services
Loan Market
Connective
Liberty Network Services
MoneyQuest
Connective
Compliance support
MoneyQuest
IT and CRM support
Loan Market Communication with brokers
Loan Market
Liberty Network Services
MoneyQuest
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SPECIAL REPORT
BROKERS ON AGGREGATORS
O h
GETTING PAID
1 O
Despite many conversations over the past two years about broker pay, most brokers are fairly content with their current commission split BROKERS REMAIN happy with their aggregators’ commission splits, according to this year’s survey. While the proportion of brokers who are ‘very happy’ has dropped, so has the proportion who are ‘not happy’, leaving a 4% increase in those brokers who are ‘somewhat happy’.
Accurate and on-time commission payments was once again voted the top priority for brokers, just ahead of compliance support. Taking the gold medal in this category – and its only medal in the survey – was National Mortgage Brokers. It scored a silver medal in this category last year as well, showing brokers’
COMMISSION STRUCTURES AND BROKER SUCCESS Commission split
Flat fee
Transaction fee
30% 26.61% 25.21%
25%
Percentage of respondents
22.59%
20% 15% 10% 5.42%
5% 3.15%
2.62% 0.87%
$0–$10m
5.07%
3.50% 0.87%
$10,000,001-$20m
0.70% $20,000,001–$40m
1.40%
1.22%
0.70%
$40,000,001–$60m
$60m+
Settlement volume
0.0%
2
consistent happiness with this aggregator's performance in this area. The majority of brokers taking the survey were on a commission split, with 12% on a flat fee and 3% on a transaction fee. The proportion on a flat fee has consistently dropped over the last few years. In 2018, 30% of brokers taking the survey were on a flat fee. While overall the majority of brokers settle up to $10m in a year and their numbers go down as the values get higher, those earning a flat fee are more likely to settle $20m–$40m worth of loans. In last year’s survey there was an increase in the number of brokers who thought there was a problem with hidden costs from their aggregators. This has dropped back down again, with a huge 90% of brokers saying there is no problem with hidden costs. Of those who said it was a problem, 3% said it was a major problem. Brokers who said it was a major problem complained of the charges being unjustified for the services the aggregator provided. One broker said their aggregator had recently changed its software so that there were now fewer options and less functionality, but they still had to pay a fee to use it.
ARE HIDDEN COSTS IMPOSED BY YOUR AGGREGATOR A PROBLEM?
Major problem
20
90.07% Not a problem
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2
A b o s
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Problem
3.14% 6.79%
2 O
29/06/2020 1:20:11 PM
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SPECIAL REPORT
BROKERS ON AGGREGATORS
Other brokers who said it was a problem also mentioned fees for IT systems; one broker said their costs had gone up by 20%. Another broker had no idea where the fees were coming from: “They sent me an invoice of $20 with a miscellaneous charge … it is a small amount but they charged without any explanation.” The aggregators winning medals in the categories related to income opportunities
Accurate and on-time commission payments was once again voted the top priority for brokers, just ahead of compliance support reflected a big shift from last year. Loan Market won no medals in these categories in 2019, but this year it took out medals in all three, including gold for white label offering. MoneyQuest has also made great gains in this year’s survey, winning gold for additional income streams, as well as two bronze medals for white label offering and accurate and on-time commission payments.
HOW HAPPY ARE YOU WITH YOUR AGGREGATOR’S FEE/COMMISSION SPLIT?
HIGHLIGHTS: MONEY MATTERS
Accurate and on-time commission payments
National Mortgage Brokers
Loan Market
MoneyQuest
Liberty Network Services
Loan Market
AFG
MoneyQuest
Additional income streams
MoneyQuest
White label offering
Not happy
4.70% 27.35%
Somewhat happy
Loan Market
67.94% Very happy
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GROWING YOUR BUSINESS In a time of uncertainty, business support is hugely important for brokers. Thankfully, most seem happy with what they receive from their aggregators
HOW USEFUL ARE YOUR AGGREGATOR’S PD DAYS?
5.92%
21.25%
Not useful at all
Useful
72.82% Very useful
MAIN OBSTACLE TO LEAVING AN AGGREGATOR Data migration/IT issues 25.96% Clawbacks/trail issues 18.12% Lack of time 16.38% Contractual obligations 12.37% Loss of back-office services 5.40% Loss of marketing services 4.01% Licensing issues 3.14% Upfront commission issues 1.74% Others 12.89%
EDUCATION AND professional development days are becoming increasingly important as the lending landscape grows more complex. With changing policies, new products and new lenders coming into play, brokers are trying to stay on top of the game. It is positive, then, to see that brokers’ satisfaction with their aggregators’ PD days has increased. Up from 65% in 2019, almost 73% of brokers this year said they found the events to be very useful. MoneyQuest just pipped Loan Market to the post to take out the gold medal for its training and education. Training and education have been important areas of focus for every aggregator this year. Interestingly, training and education has actually gone down the list of priorities for brokers – dropping from fifth place to seventh. However, 31% of brokers said they would consider leaving their aggregators if they were to provide poor training and education. Both MoneyQuest and Loan Market took out medals in all four of the categories related to business support, with the latter receiving gold for lead generation, marketing support and quality of lending panel. Quality of lending panel is more important to brokers this year, with almost 40% saying they would leave their aggregator if this area was poor. It remains the third most important area for brokers.
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SPECIAL REPORT
BROKERS ON AGGREGATORS
HIGHLIGHTS: BUSINESS DEVELOPMENT Lead generation
Loan Market
MoneyQuest
Liberty Network Services
MoneyQuest
Liberty Network Services
Marketing support
Loan Market
Quality of lending panel
Loan Market
outsource financial
MoneyQuest
Loan Market
outsource financial
Training and education
MoneyQuest
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Lead generation and marketing support are further down on brokers’ list of priorities, and while only 13% and 17%, respectively, said they would leave their aggregators if they weren’t delivering in these areas, both tend to be something brokers bring up in their comments. When asked what services they would like their aggregators to add to improve their offering, many brokers singled out better marketing support. On the question of leaving an aggregator, when brokers were asked what the biggest obstacles to leaving would be, more than a quarter said it would be data migration or IT issues. Many said it would be a complicated process moving everything over and needing to get reaccredited; this raised concerns that they would need to put their clients on hold while everything was resolved.
31% said they would consider leaving their aggregators if they provided poor training and education Asked what aggregator they would move to if they had to switch tomorrow, brokers’ top pick was Connective, with 23% of the vote. Brokers said this was because of its good reputation and the positive feedback they had heard from broker colleagues. Many mentioned its good commission split, and others talked of its IT and software as well as its strong brand. The survey also asked brokers what lenders they would like to have added to their aggregator panels. As was the case last year, most brokers who wanted a lender added would like to see HSBC join their panels. Brokers also mentioned a number of fintechs and customer-owned banks, but the majority were happy with their current lender panels.
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WHAT YOU’RE SAYING We asked brokers: with the changes to RG209 and the introduction of the best interests duty, as well as the challenges of COVID-19, what would you like to see your aggregator offering to help you? “I would like my aggregator to make sure that the best interests duty is templated and automated as much as possible to minimise the impact on business efficiency” – NSW broker “Better marketing and email support direct from our CRM so that all our email communications are automatically saved in file notes so we can show BID is being met and considered via our daily conversations” – NSW broker
“It is imperative that brokers are trained in the correct compliance procedure to deal with BID and the changes to RG209. Aggregators need to continue to keep their brokers up to date with legislation and how to protect their business” – Vic broker
WINNING COMMENT
Hundreds of brokers responded to our question on the changing legislation. A Jimmy Brings voucher goes to the broker with this prize-winning comment! “Possibly a rotating lender panel via video link. Even something simple like a quick five-minute video from each lender BDM talking about their niches and products and submission tips. That would be handy”
– Vic broker
“I wish all aggregators and lenders would accept online interviews with customers. It is a new era and time to work online” – NSW broker
“Broader training/information sessions detailing the specifics around this particular legislation. In addition, a list of suitable examples would help enormously” – Vic broker
“My greatest concern is in the personal loan space. Home loan compliance support systems are great; however, personal loans compliance is clunky and leaves me feeling exposed” – Qld broker
“All I want them to do is simplify the compliance forms and process instead of adding to the complexity of BID and making it even more difficult than it has to be. Think and act from the broker’s perspective, not the aggregator’s perspective” – Qld broker
“Aggregators must get on the front foot and assist brokers with the RG209, BID or any changes to industry and their interpretations of the impending industry changes. Brokers’ businesses generally rely on communication from our aggregators to advise of any changes we need to implement based on policy, compliance or interactions with our clients” – Vic broker
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SPECIAL REPORT
BROKERS ON AGGREGATORS
FINAL RESULTS The top five aggregators for 2020 tell MPA more about what they are doing to support brokers 5th
NATIONAL MORTGAGE BROKERS
Overall score: 4.216
4th
1
MPA: You won gold for accurate and on-time commission payments. How have you worked towards this? Gerald Foley, managing director: “We understand how hard brokers work to earn commissions. We make sure we work as hard to ensure all commissions received are processed accurately and on time, every time. We run a zero unclaimed commissions account as all commissions are sourced back to the introducing broker, who may have missed loading or settling a loan. And we often go in to bat for our brokers where a lender has, in our opinion, been too quick to apply clawback without considering the circumstances behind the clawback decision.”
3rd
OUTSOURCE FINANCIAL
Overall score: 4.239
2nd
1
1
MPA: You received a bronze medal for your training and education. Can you tell us what you’re doing in that area? Tanya Sale, CEO: “We believe ‘Education is Empowerment’ and have committed the time and resources to deliver quality learning opportunities for our members. A perfect example was our response to the disruption caused by COVID-19. We developed a Business Continuity Program to give our members the tools to navigate the changes. We also recognised that the changes brought the opportunity of time to enhance their skills or learn new ones, and we launched a Digital Learning Festival to keep them engaged and offer them new skills and knowledge to help them grow.”
LIBERTY NETWORK SERVICES
Overall score: 4.388
3
3
MPA: Your top score was for compliance support. Why do you think that is? Brendan O’Donnell, managing director: “By focusing on the appropriate training and support around customer engagement processes, we make the compliance process a natural component of an adviser's business and inherently part of our culture. Our advisers know that with LNS their compliance needs are covered, alleviating the stress and uncertainty that compliance requirements can bring. We provide monthly compliance training and audits of adviser files, and regular webinars to ensure all obligations and requirements are understood. Through our Spark technology platform, advisers can access a comprehensive compliance library and directly contact our compliance and risk teams at any time.”
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MONEYQUEST
Overall score: 4.611
4
3
4
MPA: One of your top scores was for BDM support. Why is your BDM support so strong? Michael Russell, managing director: “We focus on assisting our franchise owners to grow and develop their respective businesses as distinct from simply becoming better mortgage brokers. Understanding ‘Client Lifetime Value’ has been instrumental in driving appropriate investment decisions by our franchise owners.” MPA: How will you continue to work towards building strong broker relationships over the next year? MR: “The recent deployment of our enterprise-wide, fully automated life-of-loan client communications is sure to strengthen our franchise owner businesses. Two years in development alongside Salesforce, our brokers can look forward to a significant increase in their repeat and referral business conversions, while no longer needing to action any sort of client contact program. Simply put, our actions will continue to speak louder than our words.”
www.mpamagazine.com.au
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1st
LOAN MARKET
Jumping from third place in last year’s survey, Loan Market has stormed ahead to take out six gold medals. Executive chairman Sam White explains how the aggregator has been working with brokers over the last 12 months Overall score: 4.648
6
MPA: You came in top for communication with brokers. What puts you above the rest in this category? Sam White, executive chairman: “Communication is at the core of everything we do. Our values are courage, responsibility and curiosity. We do what we say and are brave enough to have the hard conversations. So, at the start of 2018 as our industry faced a royal commission, no one knew how tough it would be for brokers on the ground. At Loan Market, we’ve always strived to be transparent with our network, but we knew what was coming would mean they would need and deserve more from us. So we set the standard for communication: regular, relevant, clear and no BS. “I’m pleased to say the standard we set has continued through the handing down of the royal commission report, the federal election, discussions around best interests duty, and now COVID. Our brokers have responded well to our refreshed approach; our #1 survey rating is testament to that. “We use a range of tools to communicate to our network, including email, video, podcasts, SMS, daily training, chat groups and fortnightly company webinars. In late 2019, we also implemented a communication solution that sits within our custom-built platform, MyCRM,
2
2
which delivers non-intrusive messages to our brokers as they work.” MPA: You also got top marks for your IT and CRM support. Can you tell us about your digital offerings? SW: “Loan Market is delivering the future of mortgage broking, where all brokers will be 100% digital, using time-saving technology to blend online and offline seamlessly to support their customers. Our multimillion-dollar, custom-built tech solution, MyCRM, is central to this; it helps our brokers save time and keeps them safe with seamless integration of tech and compliance. “We do this with tools like the Hello Pack, which is a sleek online pack sent to the customer that introduces the broker, invites them to start their application and delivers the Credit Guide. Online Fact Find has been another game changer for us. It’s a time-saving feature of MyCRM that gathers client data, bank statements and documents in an easy online solution empowering the customer to co-create their application and collaborate with their broker. “Plus, the Goal Setter – one of our newest tools – is a revolutionary digital meeting companion that drives consistent, quality conversations around client goals, objectives, preference and requirements.
The Game Plan is also a sophisticated tech-driven document that outlines the extensive work the broker has completed for the customer and details their expert opinions and recommendations, automatically generated from MyCRM. “MyCRM has been built by brokers, for brokers. So we value real broker feedback. Brokers can request and vote on MyCRM enhancements through an inbuilt system called ‘Canny’, so we are making changes to our platform based on what brokers really want. Plus, we automatically survey 6% of MyCRM users every day, for a consistent check-in on broker satisfaction. In 2019 we grew our NPS satisfaction rating of MyCRM by 25 points; today’s average is +60.”
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FEATURES FEATURES
TOP BDMSS
BDMS
IN THE SPOTLIGHT It’s been another tough year for lending, but these BDMs have remained resilient to ensure brokers have everything they need
THE ROLE of a BDM has been so important this year, as changing lender policies mean brokers need fast support and access to up-to-date information. The coronavirus pandemic has led some lenders to put the brakes on and stick to supporting their existing clients, whereas others are still lending, albeit much more cautiously. There are schemes in place for certain borrowers and other schemes in place for businesses, all with strict criteria and limits. Helping brokers navigate the complex environment right now are the BDMs. Both the residential and commercial lending markets have been affected. Over the following pages we profile a mix of BDMs across a range of areas, who talk about how they have been working with brokers through challenges such as those that we’re seeing today.
Many of them explain how vital it is to provide education and support to brokers. The education piece is something everyone is talking about right now, both lenders and aggregators. While their BDMs play a crucial role in disseminating information, they also have their own experiences to draw on. With decades of experience between them in the finance industry, the BDMs featured here take pride in being able to share their knowledge for the benefit of brokers. Another of the key points made by these BDMs is the importance of getting fast answers and information to brokers. Even if the answer is a simple no, or something more complex, having those early conversations means they can get to work on alternative solutions more quickly. The BDMs we’ve spoken to represent one bank and two non-banks: ING, La Trobe Financial and Liberty. Rather than pushing
their own products and agendas, most – if not all – said in their interviews that if their institution could not help a client, they would work with the broker until they found an alternative. These BDMs see themselves as partners with brokers, and when the broker succeeds the BDM succeeds. This is why many of them talk about being available all of the time to answer any questions or queries or workshop any scenarios the broker may have. The profiles over the next six pages give insights into these lender BDMs and are followed by a directory with information on other BDMs across the country. Thank you to ING, La Trobe Financial and Liberty for taking part in this year’s feature – and to the BDMs for giving of their time to talk about their roles. This feature celebrates all the hard work and passion they put into supporting the broking industry.
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FEATURES
TOP BDMS
SANDY GOURGY Having worked at ING for more than seven years in various roles, BDM Sandy Gourgy says she “bleeds orange”. Her experience at the bank has meant she has not only developed incredible relationships with brokers but gained the knowledge she needs to help brokers fast. Something Gourgy learnt early on in a relationship manager role was the importance of trust. Particularly with COVID-19 putting a lot of stress on brokers, right now her clients are relying on her to be available to help them. “Brokers are not calling me five times to say hello; they’re calling me five times because something is wrong, so I need to do everything in my power to help,” she says. “As long as I’m doing my best to help them as much as I can, they appreciate that. It’s trust
JEROME ZALDIVIA He started out as a broker himself, before moving into lending and then back into the third party space as a residential BDM, so Jerome Zaldivia knew he could offer something special to his brokers. His experience, knowledge and passion for the industry mean he knows what brokers need from him. For both new and experienced brokers, Zaldivia understands how important it is to receive quick responses and develop strong relationships with their BDMs. Maintaining a broker mentality, Zaldivia’s favourite thing about being a BDM is being able to help with a transaction and “get a win”. “Feeling that you’re part of a step towards helping a customer achieve something that’s life-changing, that’s a good feeling,” he says.
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NSW and knowing that I’m doing everything I can.” She continued to build on her relationships when the COVID-19 pandemic hit. For Gourgy, it was important to make sure brokers’ health and wellbeing came first. With around 830 brokers to look after as a residential BDM, she began phoning them to see how they were coping, which allowed for deeper conversations and a “different kind of relationship”. Working from home with no face-to-face meetings, Gourgy has been using the extra time to really work through submissions with new-toindustry brokers. “We don’t know any boundaries, so they can call us anytime, and I’m personally working through the submission with the broker because I have the time to,” she says.
VIC He takes particular pride in being able to help new-to-industry brokers, understanding that it can be a daunting experience. “It’s an education piece, passing on that knowledge on policy and compliance,” he says. Education is something he really values, not just for the broker but for himself as well. He says he is still learning and loves to learn about his brokers’ businesses so he can understand exactly what he can do for them. “I try to understand them, their business, their clientele and their niches. I ask all the questions to get an understanding of that, of other things that are important to them and what they expect from me,” he says. “I’m going to be working closely with them, and I want to provide exactly what they need.”
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ADRIAN LEE Even after 35 years in the finance industry, ING BDM Adrian Lee says he has never worked for a group that’s so people-focused. This is what makes him strive to be the best that he can be every single day – “because that’s what you see in the people you work with day after day after day.” There are many things Lee loves about his role as a commercial BDM: having the autonomy to do his job and be successful, working with others in the finance industry, and being able to share his experiences and knowledge to help others develop and grow. “Our brokers remain so relevant to our customer base, and their knowledge and expertise makes doing business just so much more enjoyable,” he says.
GEOFF MURPHY In September last year, ING’s Geoff Murphy made the switch from being a residential BDM to a commercial BDM. With more than 18 years in financial services – five of those at ING – he is using his background to help mortgage brokers who are trying to break into commercial lending. He says he can “cut through the jargon” and guide his brokers on the aspects of a transaction they need to focus on to obtain approval from a commercial lending bank. “I will do whatever it takes to get the deal done, assisting the broker to package the application, and working with the broker on serviceability and structuring the application for submission to the lender,” he explains. Murphy says the broker industry is a great
VIC Lee explains that he sees working with brokers as a “two-way street”: he gives back what he expects in return. “Communication, transparency, honesty and delivering within and beyond expectations is the key to developing good long-term relationships,” he says. Those relationships have been even more crucial this year as brokers face the challenges of COVID-19. Lee says that if he’s learnt anything it’s that you need to be strong and to work together to be successful. “I don’t enjoy doing this job because I like playing with numbers,” he says. “I do this job because together, I think, we are making a difference.”
VIC one to be a part of, as brokers are passionate about their customers and getting them the best possible outcomes. “That passion really inspires me to be the best I can be every day,” he adds, explaining that he sees himself more as a broker’s trusted business partner than as a bank BDM. Being able to work together to find solutions and overcome challenges is his favourite aspect of the role. With all the challenges and uncertainties of this year, Murphy says COVID-19 has changed the way the industry does business forever, but that is one of the best things about the industry. “We’ve been thrown curve balls, especially over the past five years, and we always adapt and keep moving forward,” he says.
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FEATURES
TOP BDMS
WARAN CHANDIRAN “Working together” with brokers is key, says La Trobe Financial BDM Waran Chandiran. Whether it’s through challenging situations or tough transactions, he believes that working through any situation together is far more rewarding, no matter how tough. Those relationships with brokers are important to him, and as a BDM he likes to take the time to get to know their businesses and learn more about what they need. “This is how we grow and create long-term successful relationships,” he says. “It’s not just about a broker and a BDM – it’s more than that. We have one common goal to achieve, and we work together to achieve that through the good times and the bad.”
PORTIA RIDLEY With experience in the credit team at La Trobe Financial, Portia Ridley has the advantage of understanding “all things credit, policy and product” at the non-bank. But her favourite thing about the role of a BDM is that every day is different, from meeting new clients to catching up with existing ones, to holding broker workshops and working with the credit team. She also loves being able to problem-solve and work with brokers to find suitable solutions, in turn helping them grow their businesses. Ridley’s credit background means that she can provide brokers with a yes or no answer really quickly and put forward a suggested solution, acknowledging that a broker’s time is valuable.
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NSW Chandiran has been in the finance industry for more than 22 years, having joined it straight out of high school. He believes that being a BDM also means ensuring his specialised knowledge is kept up to date and that he is delivering the latest and most accurate information. “Taking ownership, working together with brokers to identify what matters to them, and then tailoring their needs and meeting expectations wherever possible is also important to me,” he says. “I want everyone to feel comfortable with any questions, and to not be afraid to ask a ‘silly question’, because I believe there is no such thing. I champion the power of asking and challenging things around us; it’s how we learn best.”
VIC “My brokers know that I always deliver an upfront answer, and so they feel they can trust me,” she says. “It is imperative for me to set realistic expectations from the beginning.” As part of her role, Ridley goes the extra mile to ensure brokers are kept up to date and informed, scheduling regular catch-ups to workshop scenarios and provide product updates. She says she likes to see herself as an extension of her brokers’ businesses. “I am used to working on complex scenarios every day and problem-solving,” she says. “We are a solution-based lender, so I can directly phone any credit analyst in our team to workshop a scenario together and find the best possible outcome for my brokers.”
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MICHELLE ROSE
QLD
It is the broker relationships that La Trobe Financial’s Michelle Rose has developed over the past three years that are her favourite thing about being a BDM. “Nothing gives me more pleasure than helping my brokers find finance solutions they may not have thought were available,” she says. Rose has worked in banking and finance for more than 20 years, mainly at non-bank lenders. She has knowledge and experience not only of business development but across the whole lending process, from submission to settlement. Acknowledging that she may not always have the answers, Rose says she will always do her best to find them out. She encourages all her brokers to reach out to her, as she believes
that strong relationships are built upon being supportive and present. “I’m passionate about what I do and will go above and beyond to support my brokers,” she says. “I’m also committed to always returning calls and emails in a timely matter, which I know my brokers appreciate.” Seeing first-hand how brokers reach out for assistance with loans that they may not have had previous experience with before, she believes her role as a BDM is to share knowledge and support, and provide brokers with guidance to enable them to grow and learn. “In turn, we are both helping the client find a solution that meets their finance needs. It’s a win-win for both of us,” Rose says.
STACEY MADEJEWSKI
SA
With broad experience of many aspects of the finance world, La Trobe Financial BDM Stacey Madejewski has worked for more than 22 years in banking, insurance, brokerages and specialist lending. There are many things Madejewski loves about being a BDM, but “without a doubt” her favourite is dealing with professional, personable and passionate brokers, and helping the end clients achieve their desired outcomes, which she is better able to do by working at a lender like La Trobe Financial. “I love working in a role where I get to help deserving customers that may not have access to mainstream lending options for a variety of reasons,” she says. Where there are deals that she still can’t
help with, Madejewski will continue working to ensure an alternative solution is found, workshopping and reviewing applications to help the deal progress smoothly from start to finish. As the industry faces challenges, particularly this year, she strives to work closely with her brokers to deal with any problems before they become larger issues. “This is not always possible, and if we are faced with a tricky situation I like to face it head-on and take it up with the relevant parties,” she says. “I would hope my brokers would agree that I offer them an end-to-end service and am here to support them and their clients through the entire process.”
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FEATURES
TOP BDMS
CHRISTINE GOUGH For Christine Gough, commercial BDM at Liberty, honest and open communication is the key to successful broker relationships. She believes that “having all the information out on the table from the start” is the best way to achieve positive customer outcomes. “Some situations can be tricky,” Gough says. “Talking it through and working as a team to achieve the best outcome will always yield greater results.” What sets Gough apart is her willingness to dig deeper to help her business partners find solutions that may not have been obvious in the beginning, as well as her ability to see the bigger picture.
SEAN DRISCOLL A ‘Libertarian’ through and through, Sean Driscoll joined Liberty in 2012 straight out of university and cut his teeth in the settlements team. He went from strength to strength before later moving into the role of a residential BDM. Passionate about supporting brokers to achieve the best customer outcomes, Driscoll believes that timeliness of responses is a key factor in delivering quality service. “Whatever the scenario, I always strive to provide fast and efficient support so that our business partners can keep things moving,” he says. “This is what customers are looking for, and happy customers lead to more referrals.” Driscoll’s commitment to service has helped
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VIC “My goal is to gain an understanding of the customer’s business and what they are trying to achieve,” she says. “This helps me tailor solutions to match their individual needs.” When asked what she enjoys most about her role, Gough talks about “finding more ways to add value”. She loves helping brokers uncover new opportunities to do more, and supporting them in overcoming any issues that may arise. “Whether it’s through mentoring, coaching or simply sharing some valuable insight with a broker, a successful day for me is knowing that I have added value with each interaction,” Gough says.
VIC him forge lasting professional relationships based on trust, honesty and integrity. “Building trust takes time, but it’s an essential component of becoming a successful BDM,” he says. “Brokers need to be able to count on me to deliver on my promises and be consistent in managing their expectations.” With eight years of experience under his belt, Driscoll takes great pride in the progress of his business partners and loves to see them thrive. “Supporting new-to-industry brokers and helping them find their feet is a fantastic feeling. It’s so important to get started on the right path – and playing a part in their journey is incredibly rewarding,” Driscoll says.
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SAM JOLLEY
SA / NT
With an impressive career history spanning more than 18 years, Sam Jolley, BDM – motor at Liberty, knows first-hand how important it is for brokers to keep in close contact with their BDMs. “Motor finance moves so quickly. Brokers may only get one chance with the customer in front of them, so it’s essential that they can reach their BDM to access the information they need,” he says. However, it’s not just about picking up the phone. According to Jolley, it’s about understanding the broker’s business and stepping in to help them problem-solve when they’re struggling to get a deal over the line. “Becoming a successful BDM means being
brave enough to get out of your comfort zone to find the right solution,” he says. Jolley carries this level of drive through all of his duties, and credits much of his success to the strong relationships he has forged throughout his career. “At Liberty, we are about solutions-based lending,” he says. “We work closely with our business partners to find innovative solutions to complex scenarios, and this helps us build lasting professional relationships.” Having supported many brokers in diversifying into motor lending, Jolley is passionate about fostering broker success and thrives on finding new ways to guide brokers in growing their businesses.
AHMAD ELMUSTAPHA
NSW / ACT / QLD
“At any stage of their career, a broker’s success can heavily depend on the guidance and support they receive. And the best way to support them is simply to be there for them when they need you most,” says Ahmad Elmustapha, BDM – LFI. Alongside his focus on providing constant support, Elmustapha prides himself on his ability to build strong professional relationships based on understanding and mutual respect. He believes the most important aspect of the relationship between brokers and BDMs is recognising that they are working together to find the best solution. “Ultimately, we are both trying to achieve a common goal: to provide excellent service and
achieve the best outcome for the customer,” Elmustapha says. “By working collaboratively, we can find creative solutions to help even more customers get financial.” With previous experience in motor lending, Elmustapha has now set his sights on insurance and is passionate about helping brokers find new ways to grow their businesses. “What some brokers don’t realise is that there may be new opportunities to service the same customers,” he says. “By diversifying their businesses to include insurance and other asset classes, they’re likely to find many new leads within their existing databases.”
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FEATURES
TOP BDMS
DIRECTORY OF TOP BDMS ING BDM name
Company
Phone number
Location
Area of expertise
Clem Marcocci
ING
clem.marcocci@ing.com.au
0401 145 180
Sydney CBD and Inner West
Residential lending
Nicholas Brookes
ING
nicholas.brookes@ing.com.au
0419 157 218
Western Region – Bankstown, Parramatta, Ryde, Liverpool, Penrith, West
Residential lending
Stuart Moore
ING
stuart.moore@ing.com.au
0434 510 545
NSW regions of Sydney Northern Beaches/North Shore, Central Coast, Newcastle, NSW North Coast
Residential lending
Shellie Hall
ING
shellie.hall@ing.com.au
0406 664 105
North West Melbourne, Melbourne CBD and Tasmania
Residential lending
Farid Mirkhil
ING
farid.mirkhil@ing.com.au
0406 530 458
East and West Melbourne, Victoria
Residential lending
Milenko Novakovic
ING
milenko.novakovic@ing.com.au
0404 393 558
SA
Residential lending
Peter Bousen
ING
peter.bousen@ing.com.au
0478 404 111
North and Western Brisbane, Toowoomba, Sunshine Coast and Central Queensland
Residential lending
Ross Fitzgerald
ING
ross.fitzgerald@ing.com.au
0425 297 834
Perth, WA
Residential lending
Lorence Crema
ING
lorence.crema@ing.com.au
0478 316 442
Queensland/NT
Commercial lending
Richard Bennett
ING
richard.bennett@ing.com.au
0475 967 966
NSW
Commercial lending
LA TROBE FINANCIAL BDM name
Company
Phone number
Location
Areas of expertise
Paul Biddle
La Trobe Financial
pbiddle@latrobefinancial.com.au
0421 029 687
WA
Residential, commercial, SMSF, development finance, specialist
Stacey Madejewski
La Trobe Financial
staceym@latrobefinancial.com.au
0402 924 354
SA
Residential, commercial, SMSF, development finance, specialist
Portia Ridley
La Trobe Financial
pridley@latrobefinancial.com.au
0447 599 664
Victoria
Residential, commercial, SMSF, development finance, specialist
Gavin Robinson
La Trobe Financial
grobinson@latrobefinancial.com.au
0438 637 490
Queensland
Residential, commercial, SMSF, development finance, specialist
Khan Inanli
La Trobe Financial
kinanli@latrobefinancial.com.au
0491 155 871
NSW
Residential, commercial, SMSF, development finance, specialist
Waran Chandiran
La Trobe Financial
wchandiran@latrobefinancial.com.au
0413 847 657
NSW
Residential, commercial, SMSF, development finance, specialist
Stephen Hoare
La Trobe Financial
shoare@latrobefinancial.com.au
0431 349 716
Victoria
Residential, commercial, SMSF, development finance, specialist
Michelle Rose
La Trobe Financial
mrose@latrobefinancial.com.au
0401 641 482
Queensland
Residential, commercial, SMSF, development finance, specialist
Chris Salm
La Trobe Financial
csalm@latrobefinancial.com.au
0413 913 046
Victoria
Residential, commercial, SMSF, development finance, specialist
Mark Simmons
La Trobe Financial
msimmons@latrobefinancial.com.au
0432 631 795
Victoria
Residential, commercial, SMSF, development finance, specialist
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LIBERTY BDM name
Company
Phone number
Location
Area of expertise
Daniel Heylbut
Liberty
dheylbut@liberty.com.au
0434 338 521
NSW
Residential
Mark McIntosh
Liberty
mmcintosh@liberty.com.au
0434 338 527
NSW
Commercial
Sean Driscoll
Liberty
sdriscoll@liberty.com.au
0434 338 533
Victoria
Residential
Christine Gough
Liberty
cgough@liberty.com.au
0434 338 536
Victoria
Commercial
Daniel Connell
Liberty
dconnell@liberty.com.au
0434 338 591
Victoria
Motor
Leanne Urquhart
Liberty
lurquhart@liberty.com.au
0434 338 596
Queensland
Motor
Sam Jolley
Liberty
sjolley@liberty.com.au
0434 338 598
SA and NT
Motor
LFI
aelmustapha@lfi.com.au
0434 338 529
NSW, ACT and Queensland
Insurance
Liberty
bmckell@liberty.com.au
0434 338 702
NSW
Business
MoneyPlace
daisy.yu@moneyplace.com.au
0455 237 238
Victoria and Tasmania
Personal
Ahmad Elmustapha
Ben McKell
Daisy Yu
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FEATURES
SPECIALIST LENDING
The specialist at work How can specialist loans serve the needs of your non-traditional clients? Daniel Carde of Resimac shares his insights
ONE OF the common criticisms levelled at the traditional mortgage system is that it can be, well, exclusionary. Life does not treat everyone equally and can throw all manner of unusual circumstances at people. Failing to fit the ideal standard espoused by banks can lead to a tough situation, rendering people unable to secure finance for their home or business. Self-employed borrowers, credit-impaired borrowers, contract workers, borrowers who have reached their exposure with mortgage insurers – among others – have
Given the unusual circumstances of 2020, it’s likely that these loans will see another surge in popularity as people look for new ways to secure finance for their homes, businesses and investments. For brokers who aren’t already working with specialist loan providers, now might be a highly opportune time to consider doing so. Daniel Carde, Resimac’s general manager – distribution, describes specialist loans as “solution-based”: they’re geared towards finding novel solutions for borrowers who
“The primary challenge is understanding what solutions are available to meet borrowers’ needs and shifting your mindset accordingly” Daniel Carde, Resimac all found themselves unfairly stung as a result of the rigidity inherent in the current system. Enter specialist loans. Growing in popularity in the wake of the 2008 GFC, specialist loans have a broader risk profile and cater to a wider variety of borrowers.
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find themselves in unusual situations. While there has previously been some stigma associated with such loans, Carde notes that this has been changing for some time. Much of the shift in attitude has been driven by changes to traditional loan criteria as
lenders grow more conservative in the wake of falling interest rates, along with a host of other economic factors. As the idea of a ‘traditional’ borrower shifts, the market needs to adjust accordingly to accommodate the new breed of borrowers. “Really, specialist loans cater to any borrower who may fall outside traditional banks’ or lenders’ mortgage insurance guidelines,” Carde explains. “It’s a common misconception that this applies solely to impaired borrowers, but that’s just not true. Many of the specialist loans that we write are for self-employed people, or for borrowers that we classify as being ‘clear’ credit.” The key to offering these loans is under standing the client scenario you’re trying to
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NON-BANKS’ GROWING MARKET SHARE Non-banks’ market share has increased by 6% since 2019 as brokers look for alternative solutions for their borrowers
9%
1% 11% 1% 4%
Market share 2019
4%
69%
7% 17% 3% 4%
Market share 2020
62%
7% solve, notes Carde. It’s crucial for borrowers and brokers alike to understand and recognise that a specialist loan can be a ‘point in time’ lending solution – the borrower may qualify for a prime loan down the track, and refinancing may be possible. “Brokers need to be able to take their borrower on a journey to help them understand why they don’t qualify for a prime loan at that point in time,” says Carde. “How and why will a specialist loan provide the solution to that client scenario? It could be a larger loan, with an attendant larger loan-to-valuation ratio, or a shorterterm solution for a client who is on their path back to prime lending.” Carde believes that brokers should be
confident about being able to provide specialist loans. The lending criteria are essentially the same as for prime loans; the fundamentals of serviceability, security and suitability do not change. “Specialist loans are also assessed in accordance with responsible lending guidelines,” says Carde. “Given the ever-shifting borrower landscape, offering specialist lending gives the broker the opportunity to help more borrowers more of the time.” Carde points to a variety of Resimac’s specialist loan features. The company has a long-established presence, product offering and processes in place to cater for this borrower type, offering both full-doc and alt-doc loans, and lending solutions for both
Major banks Local banks (owned/aligned with majors) Independent local banks International banks Non-banks Credit unions Other private lenders Source: FAST Business Lending Index
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29/06/2020 1:43:10 PM
FEATURES
SPECIALIST LENDING
clear credit and credit-impaired borrowers. “Our specialist loans have all the same features as a prime loan – redraw, offset, loan access cards, repayment options, interestonly options, and so forth,” says Carde. “We have an extensive track record of working effectively with brokers to help them meet their clients’ specialist lending needs, as well as experienced underwriters dedicated to handling specialist loans.” Of course, no discussion around loans would be complete without a discussion of risk. Brokers understandably have their own reputations to consider, in addition to the needs of their clients. For his part, though, Carde believes there aren’t any particular additional risks for brokers looking to make a move into this territory – provided, of course, that they do their due diligence, which should of course be the case with any loan. “The primary challenge,” Carde says, “is understanding what solutions are available to meet borrowers’ needs and shifting your mindset accordingly. Just because a borrower doesn’t meet traditional lending guidelines doesn’t mean they can’t be approved for a loan.” However, if a situation should arise in which a broker is unsure of the appropriateness of a given specialist lending solution, Carde
BROKER’S TAKE: CATALYST ON SPECIALIST LOANS Financial services group Catalyst has been offering specialist loans for around the past eight years as part of a fully diversified business group. Director of residential and SME lending Stephen Michaels says that while specialist lending is not a primary focus for Catalyst, it makes up around 20–30% of its total loans. Many of the borrowers coming to Catalyst for specialist loans are self-employed and require low-doc solutions, but Michaels says the non-bank also helps borrowers with credit impairments. He says there is not a lot of difference in helping a borrower with a specialist loan, and there is no additional work; it’s simply about understanding the ins and outs of the products and being able to apply them to the clients. There’s just a little more education needed for clients, who often haven’t heard of non-banks like Resimac. “Whenever you speak to a broker or consumer that’s never come across it, they think it’s something shifty, but the reality is, every single check that Resimac will do for a low-doc loan is the same,” Michaels says. “It’s exactly the same process; all we’re doing here is showing the borrower’s income in a different way.”
circumstances, but brokers should also always make sure there’s full disclosure from the client as well. Having a good relationship with your BDM will absolutely aid in that process.” With these considerations in mind, Carde also notes that ongoing education is critical for any broker looking to delve into specialist loans. As with any other product, the market undergoes periodic shifts, and it’s crucial to have a good grasp of best practice. Resimac is dedicated to providing ongoing
“Given the ever-shifting borrower landscape, offering specialist lending gives the broker the opportunity to help more borrowers more of the time” Daniel Carde, Resimac cautions that the best thing they can do is contact their business development manager. “I can’t stress enough the importance of developing a good relationship with your business development manager,” says Carde. “Due diligence is critical under any
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broker development, Carde adds. “We invest considerable time and effort in helping brokers understand specialist loans and the changing lending environment,” he says. “We have a continuing education program through our broker updates and
masterclasses, and our BDMs are fully versed in our products, policies and processes.” Looking to the future, Carde sees an evolving landscape in which there will be increasing demand for specialist loans. Even leaving aside the short-term developments associated with the COVID-19 pandemic, there are longer-term social and economic trends that will contribute to this. Carde points to changes in employment patterns, such as more people being selfemployed. These will present challenges from an economic point of view and are likely to lead to exclusion of many borrowers from more mainline products. “Brokers who can provide specialist loans will be able to satisfy the lending needs of a larger number of potential customers,” says Carde. “Mainstream lenders are unlikely to enter this area, as it’s specialised risk-based lending. And given the variety of products, brokers don’t need to worry that their clients are being short-changed simply by taking out a specialist loan. They don’t have to be low on features compared to prime loans.”
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L
1
Are you getting the right support?
Let’s talk.
1300 781 481
www.outsourcefinancial.com.au info@outsourcefinancial.com.au
Australian Credit Licence 384 324 | ABN 42 131 090 705
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FEATURES
INSURANCE
Preparing for costly mistakes MPA talks to insurance provider BizCover about what brokers can do to make sure they are protected against anything that comes their way NO BROKER goes into business thinking they are going to do the wrong thing, but, unfortunately, mistakes can be made, and they can become costly. Small business insurance provider BizCover offers a number of solutions that are ideal for finance and mortgage brokers, such as professional indemnity insurance, public liability and cyber liability. In fact, the MFAA requires brokers to have a minimum of $2m professional indemnity insurance with at least 12 months’ run-off. BizCover CEO Michael Gottlieb says that while the overall number of claims against professional mortgage brokers is quite low, when they do occur they tend to be professional indemnity claims centred around a broker making an error or being negligent in the delivery of their service. “Most claims against brokers are not due to them intentionally doing the wrong thing; mostly they have resulted from a small unintentional error, which can have a large financial consequence,” he says. “In this industry your reputation is important, and regardless of the size of the
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claim, if you feel that the allegation was false or misleading you will want to fight the claim and make sure that you are defended fairly.” Explaining how small errors can become costly, Gottlieb gives an example of how a broker completed pre-approval for a borrower’s loan that involved guarantors. The broker failed to advise the bank that the listed
home loan on the advice of a broker; however, upon settlement, it was revealed that there were ‘breaking fees’ charged by their previous bank that the customer was not made aware
“Not being insured, or even being underinsured, can be financially catastrophic for a broker” Michael Gottlieb, BizCover guarantors were also guarantors on another loan; this was discovered by the bank just prior to settlement and resulted in the bank re-assessing the loan, leading to additional fees incurred of around $6,000. The borrower claimed that sum from the broker on the basis that the broker had inadequately advised of options to limit fees. Negligence can be more costly. “For example, a customer refinanced their
of,” Gottlieb says. “The customer was awarded $50,000, to be paid by the mortgage broker, for the breaking fees incurred for refinancing their home loan. A PI insurance policy could protect the mortgage broker in this situation.” While it is clearly important that brokers protect themselves against situations such as these, they can also benefit from public liability and business insurance for property and contents.
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Sponsored by
WHAT IS PROFESSIONAL INDEMNITY INSURANCE? Professional indemnity insurance protects professionals against claims of negligence or breach of duty made by a client as a result of receiving professional advice or services from your business. If someone alleges that you’ve made a mistake, overlooked a critical piece of information or misstated a fact, or they have misinterpreted you in the course of your work, and this results in a financial loss for your client, then they may take legal action against you to recover these losses. Whether or not the allegation is true, professional indemnity insurance seeks to protect your assets, your reputation and the contents of your back pocket should this occur. This means you can continue in your business without the stress of financial or reputational ruin should a claim arise. Regardless of the merit of a claim, professional indemnity insurance will pay for your legal defence as well as any judgments or settlements that you or your business may have to pay to compensate the suing party, up to stated policy limits.
So, what is the difference? Public liability provides cover in the event that a customer, supplier or even a member of the public is injured or sustains property
cost of one cyber attack being over $270,000. Brokers, who store large quantities of customer information and rely on online systems and processes, are a potential target. Gottlieb says brokers should be considering cyber liability insurance to help protect them from claims and support their profitability in the event of a cyber breach or attack. “Not being insured or even being under-
“If you are relying on your cash flow to cover [court] costs, your business could come under financial strain” Michael Gottlieb, BizCover damage due to the broker’s business activities. A business insurance package can provide cover for the business assets, including contents, equipment and commercial premises, when an event like a fire, storm or theft occurs. Something that is becoming more and more important for brokers to take note of is the threat of cybercrime. Cybercrime costs Australian businesses around $4.5bn each year, with the average
insured can be financially catastrophic for a broker,” he adds. “As discussed earlier, most claims are professional indemnity related claims, and these claims may mean an expensive trip to court with lawyers. Defending yourself in court can be expensive, and if you are relying on your cash flow to cover these costs your business could come under financial strain.” In fact, even if the complaint is found to be
untrue, brokers may have to fork out costs. “This is where having the right insurance comes into play, covering hefty legal costs and any potential compensation, so you can use your cash flow to keep covering your ongoing costs like payroll, rent and day-to-day expenses,” Gottlieb adds. For a broker’s business, insurance is vital. Gottlieb says BizCover is a firm believer in not needing to insure “everything”, but you should be insuring the things that you or your business could not afford to cover. “Insurance is one of the few things you spend money on that you hope you never use, because if you are claiming on your policy it means that something has gone wrong,” he says. “Regularly reviewing your insurance is important, not only to ensure you are paying a fair price but also to ensure that your level of cover is right for your business. A broker from Melbourne used the BizCover service to review his professional indemnity insurance and was able to save $500 off the price of his annual policy.”* *Savings made in October 2019. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained in this article is general only and should not be relied upon as advice.
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FEATURES
WORK-LIFE BALANCE
Excellence is obsolete The pursuit of excellence is drilled into us from a young age, but Aytekin Tank explains why excellence is actually a poor standard for success
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IN LITERATURE, in media and most certainly in the workplace, mediocrity carries a decidedly negative connotation. Nobody wants to be merely mediocre. Google ‘mediocrity’, and you’ll get results such as “What to Do About Mediocrity on Your Team” and “Mediocrity is a Virus – Here’s How to Banish it From Your Life”. Article after article tells us that mediocrity is a slippery slope to complete failure. Excellence, on the other hand, has become an aspirational gold standard. To strive for excellence is to dodge mediocrity at all costs. Every day, news outlets publish stories telling us how to emulate the Steve Jobs, the Oprah Winfreys and the Tom Bradys of the world. Once we wake up before sunrise, choose an outfit that reflects our personal brand, and eliminate gluten, alcohol and caffeine, we can finally unleash the superhumans hidden inside. Even school-aged children are encouraged to pursue excellence – as soon as they can hold scissors. But at a certain point in my own career, I started to question excellence. As the founder of JotForm, should I be encouraging our 130 employees to strive for excellence and nothing less? How did we arrive at this state of obsession with excellence – and more importantly, what should be the standard for success?
to become an expert programmer, chef or hockey player? You can. We all can. It’s just a numbers game. Gladwell’s theory is based on the research of Dr K. Anders Ericsson, a professor of psychology who pioneered the study and science of peak performance. But Ericsson doesn’t entirely agree with Gladwell’s conclusions. In fact, he calls them “a popularized but simplistic view of our work … which suggests that anyone who has accumulated a sufficient number of hours of practice in a given domain will automatically become an expert and a champion”.
berating an analyst, which spurred him to publicly apologise. Musk’s experience highlights another possible toll of excellence: relationships. Those 10,000 hours have to come from somewhere, and often we start skimming them from nights and weekends; precious hours that are typically dedicated to friends and family. As Erin Callan, the former Lehman Brothers CFO, who left shortly before its collapse, wrote in a New York Times article: “When I wasn’t catching up on work, I spent my weekends recharging my batteries for the
What happens when the quest to rack up the hours required for excellence ends up compromising our health, relationships and even our happiness? What happens, though, when the quest to rack up the hours required for excellence ends up compromising our health, relationships and even our happiness? Is excellence the metric by which we should measure ourselves?
How the excellence obsession began
One-dimensional excellence might be the wrong goal
Since 1936, when Dale Carnegie published his now-iconic book How to Win Friends and Influence People, ambitious readers everywhere have been striving to improve themselves. More recently came the 10,000Hour Rule, popularised by author Malcolm Gladwell, who claimed that achieving excellence was simply a matter of time and dedication – 10,000 hours of practice. By offering a concrete, quantifiable goal, excellence seemed more achievable. Want
“There were times when I didn’t leave the factory for three or four days – days when I didn’t go outside.” That’s Tesla CEO Elon Musk, acknowledging the toll of work-related exhaustion. In a candid interview with the New York Times, he admitted that 120-hour weeks had become his norm. He hadn’t taken more than a week off since 2001 when he was bedridden with malaria. His exhaustion had also led to less-than-exemplary leadership – l ike
coming week. Work always came first, before my family, friends and marriage – which ended just a few years later.” Musk and Callan aren’t the only successful figures who received the wake-up call. It took a personal health crisis for Huffington Post founder Arianna Huffington to reshape her own idea of success. “It was a day I’ve talked and written about dozens of times – the day I collapsed from sleep deprivation and exhaustion, broke my cheekbone and woke up in a pool of blood,” she wrote in 2017. “For me, that day literally changed my life. It put me on a course in which I changed how I work and how I live.” Her latest venture, Thrive Global, is dedicated to “end[ing] the stress and burnout epidemic”. Before we barrel blindly towards excellence or 10,000 hours of mastery, it’s important to consider the potential trade-offs. Sometimes
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FEATURES
WORK-LIFE BALANCE
we get so invested in a certain outcome that we lose sight of why we even started. We can’t see the bigger picture, and our passion and excitement fade. Take elite athletes, many of whom have been groomed for greatness from a very young age. Sports psychologist Adam Naylor says he observes many college-level athletes who are now playing “out of obligation, not passion”. After a life spent in training, the excitement that first led them to pick up a hockey stick or tennis racket is long gone when they arrive at college. When passion no longer fuels your drive, chances are you won’t achieve excellence – and you won’t be fulfilled.
Redefining success The history and pitfalls of pursuing excellence are convincing, but how do we redefine the meaning of success? I believe we should think less about excellence and more about personal fulfilment – a sense of achievement that’s balanced by wellness. The World Health Organization defines wellness as “a state of complete physical, mental and social well-being, and not merely the absence of disease or infirmity”. Increasingly, we’re seeing more thriving, high-profile leaders who are openly prioritizing their wellness. Whether it’s meditating, exercising or clocking at least eight hours of sleep, wellness is slowly replacing the old masochistic work habits. For example, many CEOs have regular meditation practices, including Salesforce CEO Marc Benioff and Melinda Gates, co-chair of the Bill and Melinda Gates Foundation. Wellness also means checking in with yourself and being self-aware. Sleeping, meditating and exercising are great practices, but it’s equally important to step back and re-evaluate from time to time. Examine your
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Will you ever make a name for yourself if you don’t chase excellence? By pursuing fulfilling work and living a balanced, healthy life, you might – because chances are you’re working from a place of inspiration instead of just going through the motions short- and long-term goals and whether your work still feels inspiring. Sure, you might not be whistling while you work every day, but on the whole, your job should bring a sense of satisfaction and pride. So now you’re focusing on fulfilment, meditating daily and feeling good about your work-life balance. But will you ever make a name for yourself if you don’t chase excellence? Will you leave your mark on the world? There’s no guarantee. But by pursuing fulfilling work and living a balanced, healthy life, you might – because chances are you’re working from a place of inspiration instead of just going through the motions. And even if you never launch your own company or ascend to the C-suite, you can still make
a strong contribution to your team, earn a good living and enjoy fulfilling hobbies outside of work. Reaching for the top can have many negative consequences – on our health, our relationships, our passion and our happiness. By striving for fulfillment, we might end up happier and more successful than ever before. Aytekin Tank is the founder and CEO of JotForm, an online form creation software with four million users worldwide and more than 100 employees. A developer by trade but writer by heart, Tank shares stories about how he exponentially grew his company without receiving any outside funding. For more information, visit jotform.com.
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FEATURES
WELLBEING
The future of work and wellbeing Whether we’re working from home or adapting to new technology, the way we do our jobs will continue to change, says Mark McCrindle
THE WORLD of work is undergoing a massive transformation: from artificial intelligence to robotics and automation, what humans currently do and will be doing for work in the future is changing. The World Economic Forum predicts that “65% of children entering primary school today will ultimately end up working in completely new job types that don’t yet exist”. While demographic shifts and technological advancements play a role, it is already being recognised that the health and stress of workers – their wellbeing – is an essential factor that will impact and define the future of work.
The future of the ‘workplace’ COVID-19 has necessitated the most transformational shifts in the way we work for perhaps a century. The most notable was when almost overnight the office-bound workforce globally relocated to their homes. The digital transformation of our organisations was achieved not through manage-
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ment strategy or a new technology solution but by the realities of this virus. For the first time in modern history working from home became the norm and even ushered in a new three-letter acronym to
to ensure the wellbeing of their staff when they gather in their physical office. It’s an even greater challenge when staff are operating remotely from their individual places of residence.
With the realities of massive change facing individuals, organisations and sectors, many are thinking about how they can future-proof their careers describe it: WFH. And it is here to stay. Our national survey carried out during the COVID-19 crisis showed that 69% of employees were as productive, if not more so, when working from home than they were at the office. It also showed that far from being a temporary response to a global pandemic, 78% said working from home would become the new normal. It has already been a challenge for leaders
New decade, new generations, new career options Work will remain a key feature of life in the future, as it is now. Almost two in three employed Australians work full-time, and of these, more than half are putting in 40 or more hours per week. However, the average length of time Australians stay in a job has shortened to just under three years. If this tenure continues, then today’s school leaver
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will have, on average, 18 different jobs over six distinct careers. As students today consider their career options, there are jobs available in entirely new industries such as nanotechnology, cyber security and virtual reality. The jobs of the future will come not only from technological change but also demographic change. The ageing population is creating new opportunities, not just in the aged care sector but also for retirement services agents. The speed of change highlights the need to observe the global, technological and social trends, and to be innovative, adaptive and proactive in upskilling in order to remain relevant.
Why wellbeing is the key to future-proofing careers With the realities of massive change facing individuals, organisations and sectors, many are thinking about how they can futureproof their careers. Often the conversation becomes very technical in terms of the jobs that will exist and the skills people will need
in order to thrive in times of change. While this is an important topic, the bigger issue around future-proofing careers is wellbeing. In our worker survey we asked the question: ‘How big an impact do you think the following will have on the future of work?’ ‘Mental health and stress of workers’ was identified as having the biggest impact, with 62% saying it would have a significant or large impact. This was followed by demographic trends (55%), the physical workspace and where work will be done (55%), sectors disappearing (52%), computerisation of robotics (52%), global workforce trends (46%) and the gig economy (41%). For many workers today the biggest wellbeing impediments are mental, not physical. These include toxic feedback, stress, unreasonable deadlines, juggling multiple priorities, the increasing expectations of customers, and people needing to deliver more with less. These have the potential to create mental hazards and physical impacts. In the know-
ledge economy people may still be able to work if they have physical ailments, but people are impaired in their work if they are not mentally fit. The fact that people hold multiple jobs across different careers will only be accelerated in the future. Additionally, the retirement age is pushing into the 70s. To run such a work marathon and run it well means people must be both physically and holistically well – which embraces social, relational, mental, financial, vocational and spiritual aspects. Mental health and wellbeing are just as if not more important than physical wellbeing when it comes to thriving in the future world of work.
Mark McCrindle is a sought-after speaker, social researcher and the principal at McCrindle. He is the co-author of Work Wellbeing: Leading Thriving Teams in Changing Times.
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FEATURES
CULTURE
A time for reflection in business There has never been a better time to think about changing your organisational culture, writes Fiona Robertson
“WHEN EVERYTHING changes, change everything.” I recently heard that phrase from a colleague. Turns out it’s the name of a self-help book designed to guide individuals through a personal crisis, but it’s also the perfect way for organisations to think about COVID-19. Simply put, there has never been a better time to think about changing your board or organisational culture. We all know that culture matters. According to a McKinsey survey of over 1,000 organisations employing more than three million people, those with strong cultures (top quartile according to its Organisational Health Inventory) post a return to shareholders that is 60% higher than that of those in the median quartile and 200% more than the return of those in the bottom quartile.
You wanted a burning platform? For years I’ve heard directors and executives bemoan the fact that they don’t have a ‘burning platform’, a catalyst that will motivate
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and energise their people and focus them on making necessary changes. A reason to stop operating on autopilot, take a moment to notice what they’re doing and consciously
The reality is that your culture is changing anyway. Right now. Whether you’re actively managing it or not decide whether or not it is working. After all, you have to notice before you can choose. We didn’t ask for COVID-19, but there’s no denying that alongside the horror of a pandemic, it also offers us a significant moment for reflection. Most organisations are already in the process of rethinking their strategy in some form or other. Whether it’s who they target, what they offer or how they get it to market, they’re checking to make sure their unique combination of ‘who, what, how’ still makes
sense as we work towards establishing a COVID-safe world. And, more than ever, they’re also asking why. What is the meaning behind our work? What contribution do we make to the world, beyond making money? All of that reflection is as essential to organisational performance as it is to our collective sanity. What some businesses have forgotten is that a new strategy without the culture to execute it successfully is just a piece of paper. One that will be paid lip service to but will almost
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certainly be ignored when the really hard decisions come along. Strategy and culture are two parts of one thing. They are always changing and must constantly reinforce each other in an endless infinity loop.
Your culture is changing right now The reality is that your culture is changing anyway. Right now. Whether you’re actively managing it or not. It will happen by accident or it will happen deliberately. Culture is probably the most widely discussed and widely misunderstood concept in business today. Most people have no idea what it is or how it works. It is still very commonly confused with employee engagement. They are not the same thing. Culture is the system; engagement is an
individual’s experience of that system. So, if culture isn’t engagement, then what is it?
Culture is the rules of belonging Your organisation and your board already have a set of rules that dictate what earns or loses belonging in the group – those are the rules of belonging. The rules of belonging are based on the behaviours that increase a person’s status and acceptance in a particular group at a particular time. So the rules hide in the interpretation of behaviour, not in the behaviour itself. Looking for them is a bit like looking at The Matrix; if you don’t know there’s something to see, you won’t see anything – but as soon as you know, you see rules everywhere. You may have seen that cartoon with the two fish in a bowl;
one asks the other, “How’s the water?” and the other says, “What’s water?” Culture is like that. When you’re in it, it’s hard to see, but it fundamentally impacts everything we do. It’s easy to underestimate how tribal humans are. As the ultimate social species, we’re hardwired to keep ourselves safe through belonging and connection, so the recent cognitive dissonance of staying apart to stay safe is intensely unsettling. Our tribes are dispersing and reforming far faster than we’re used to. Our sense of belonging has been fundamentally disrupted, and it’s less clear right now what the rules of belonging are. They’re changing. They’re unfrozen. The only thing we can be certain of is that they will refreeze again, and it may be sooner than we think. The new rules of belonging may support and accelerate our new strategies or may hinder and delay them. The only way to know is to be deliberate about it: to identify the behaviours we need more of and less of and put in place clear actions to ensure they shift in the right direction. This happens most effectively through explicit, specific conversations with our people about what worked in the old world that will or won’t work in the new; then by putting in place new rituals and building new tribes who embrace and reinforce what the new good looks like around here: our new rules of belonging. There has never been a better time to change your board or organisational culture. It’s changing anyway. Don’t let it happen by accident. Let’s seize the rare opportunity to make it deliberate.
Fiona Robertson is the former head of culture at National Australia Bank and a sought-after culture change and leadership speaker, facilitator, coach and author who helps leaders create cultures people really want to belong to.
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PEOPLE
BROKERAGE INSIGHT
Ready to weather the storms Nathaniel Nhan Truong of The Loan Lounge gives MPA his perspectives on how brokerages can help build a better world, and why the market has shifted so drastically since 2015 THE PATH to broking is often a circuitous one, and Nathaniel Nhan Truong’s experience was no exception. Upon graduating from university, he obtained a graduate position in the wealth management division of a major bank. After four years of service he moved through a variety of roles, ranging from assistant to financial adviser, and eventually took on a remediation project. It was while Truong was involved in this project that he became aware of some of the more problematic aspects of the industry. “I saw first-hand how bad advice and unethical practices were leading to poor customer outcomes,” Truong explains. “It was the driving force for my decision to leave the corporate sector in Australia and travel to London to expand my horizons in 2011.” Truong was volunteering at a leadership conference in London in 2012 when he first heard in detail about human trafficking. “It had a big emotional impact on me, and I felt I needed to respond,” he says. “But at the time, I wasn’t sure of the best way to contribute to the cause.” Returning to Australia in 2013, Truong took another series of jobs in banking but eventually felt the pull of the broking life and in 2015 founded The Loan Lounge, a brokerage geared towards giving back to both the
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surrounding community and the wider world. “When I founded The Loan Lounge I felt I could combine my skills in finance with a desire to make a difference,” says Truong. “We decided to do things differently and base it on a triple bottom line philosophy around people, planet and profit.” The tagline the new company adopted was ‘Finance a difference’ – a principal enacted across clients, charities and the company. “To achieve the mission over the long term and ensure a sustainable business model, we
gain a larger share of new home loans settled. The increasing complexity of loans and riskaverse nature of major lenders – even years after the GFC – meant that more lenders than ever required a broker’s services. “We’ve seen a continuation of that trend, and we believe we’re valuable contributors to the community as a result,” Truong says. “So, in 2019 when the financial services royal commission occurred, I think there were a lot of brokers who felt unfairly targeted and vulnerable to the decisions of politicians.”
“Many people are wanting their voices to be heard; it’s a clear demonstration that our current status quo isn’t working” Nathaniel Nhan Truong, The Loan Lounge tested the idea around donating 10% of our trail to abolish slavery,” Truong explains. “We started in August 2015, and we’ve continued since then. Eventually we hope to give $1m a year sustainably.” Truong believes there’s a stark contrast between the state of the market in mid-2020 compared to when the firm was founded. In 2014/15, he says, brokers were beginning to
While Truong is a firm believer that brokers still have an important role to play in the home loan industry, he cautions that there is likely to be greater industry uncertainty and reduced confidence in the market, particularly in the face of wider world events. “Obviously we’ve already had COVID-19 this year, and now we’re seeing increased unrest around the world,” Truong says. “Many
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FAST FACTS Company: The Loan Lounge Founder: Nathaniel Nhan Truong Location: Cabramatta, NSW Year founded: 2015 Number of employees: 4 Services offered: Commercial loans, home loans, refinancing, SMSF, property investment Awards: MPA Young Gun 2017, Australian Mortgage Awards finalist 2017, Local Business Awards finalist 2019
The Loan Lounge team, from left: Lillian Milenkovic, Nathaniel Nhan Truong, Bendra Chattham and Thy Ha
“We decided to do things differently and base it on a triple bottom line philosophy around people, planet and profit” Nathaniel Nhan Truong, The Loan Lounge people are wanting their voices to be heard; it’s a clear demonstration that our current status quo isn’t working. A shift is required.” Additionally, Truong notes, Australia is likely heading into a recession. At the time of writing, JobKeeper payments and mortgage deferrals are scheduled to end in September 2020, which will probably have an additional effect of its own.
“Many brokers – including myself – don’t know what a recession feels like,” says Truong. “This will definitely affect the mortgage market as it influences market confidence, employment, housing demand, house prices and disposable income, among other factors. While the sustained low interest rates may have a positive effect on the mortgage market in terms of creating short-term
demand, it’s not healthy in the long run.” The next few months might appear daunting, and Truong says brokers need to make sure they look after their personal wellbeing and mental health. “Obviously lots of brokers are solo operators, and this brings a unique set of mental, physical and emotional challenges in its wake,” says Truong. “We’re seeing really great strides in terms of productivity enhancers, like technology and work from home capabilities, but you need to ensure that you’re not just burning yourself out in the process.” Over the next 12 to 18 months, Truong says, The Loan Lounge will have a number of areas of focus. “Firstly, we really want to improve our internal systems and build an onboarding process,” he says. “We also want to strengthen strategic partnerships with key referral partners. Times are tough all over the world at the moment, but we want to be ready to help clients the whole way through.”
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PEOPLE
CAREER PATH
A PASSION FOR BROKING The new national partnerships manager at funding.com.au, Michelle Southern, started out as a broker herself
Michelle Southern became a 2006 mortgage broker at Mortgage TOPS REGION IN RETAIL BANKING Choice when she was 21 years Realising how difficult it was to be self-employed STEPS INTO old, after being promoted from a client services manager role and obtain a home loan, Southern moved to NAB BROKING in the same office. As a broker, she generated her own leads as a home loan manager. This gave her broad and managed clients from the initial meeting to settlement. exposure to residential lending and solid credit “I was very ambitious and wanted to get into lending myself experience. After winning awards for her success within two years. I worked and studied hard, and by my 21st birthday in the residential space, she was offered the chance to my manager thought I was ready to take the next step into broking.” move into business banking at NAB, where she managed
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2012
RETURNS TO THIRD PARTY After maternity leave when she had her first child, Southern decided she wanted to go back to working fulltime in the third party space. She began as a partnership manager at FAST, looking after the largest commercial portfolio in Australia. “Along with Lindsay Blake, we started the very first FAST Women in Finance group dedicated to supporting and developing women in mortgage broking.”
2018
BEATS GROWTH TARGETS Seeing a good local opportunity to help a lender move into the broker space, Southern joined Southern Cross Credit Union (SCCU) to develop a third party distribution channel. Her networks and knowledge meant she achieved her growth targets after a very short period. “After 10 months in this role, we were close to reaching our lending capacity and didn’t have enough deposits to fund any more growth. We didn’t expect to get so much growth so quickly and had to start turning brokers away!”
2020
MIXES BUSINESS WITH COMMUNITY SERVICE In February, Southern joined funding.com.au as national partnerships manager. Working part-time, she also does community service helping teens and parents with mental health issues. In her new role she will grow the third party channel and build relationships with brokers and partners. “We have some great short-term solutions and niches for both coded and non-coded loans, and will focus a large amount of time on educating brokers on how to spot opportunities and not miss out on deals that can be written through the private channel.”
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a portfolio of business clients in Sydney. “During the three and a half years that I worked in the retail banking channel, I received multiple awards for the lender with the highest volume in settlements in the region.”
2015
COACHES BROKERS ON GOLD COAST Southern relocated from Sydney to the Gold Coast and was offered a role at Loan Market as a business development executive in its Queensland team. She was responsible for both growing the portfolio and coaching existing brokers, and she continued her work in gender equality in broking. “Along with my colleague Cath Crisp, we ran Loan Market’s first-ever Women’s Retreat.”
2019
BUILDS RELATIONSHIPS With growth on hold at SCCU, Southern sought an opportunity to get back out and develop new relationships with brokers again. She was given the chance to do so as Queensland’s partnership manager at National Mortgage Brokers.
“I was fortunate enough to be able to spend a large amount of time within some of our broker businesses and really assist them in growing their businesses and teams”
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AMA20
16 OCTOBER 2020 • THE STAR SYDNEY
THANK YOU FOR YOUR NOMINATIONS Mortgage Professional Australia would like to thank its readers for the incredible response to the call for nominations for the 2020 Australian Mortgage Awards. It’s great to see so many talented professionals and organisations who have excelled over the past year. Finalists will be announced in September. Winners will be revealed live and celebrated at the highly anticipated black-tie awards gala on 16 October at The Star Sydney.
BE PART OF THE INDUSTRY EVENT OF THE YEAR Visit australianmortgageawards.com.au for table reservations or sponsorship opportunities
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PEOPLE
OTHER LIFE
TELL US WHAT YOU GET UP TO Email rebecca.pike@keymedia.com
Broker Nicola Tucker loves learning new skills as a volu nteer firefighter a nd beekeeper
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Years since Nicola Tucker started as a volunteer firefighter
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Number of bee hives Tucker owns
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Approximate number of bees per hive
NEVER-ENDING LEARNING While she’s not looking after her Surf Coast Finance clients, broker Nicola Tucker is a volunteer firefighter and an avid caretaker of bees WHEN Surf Coast Finance broker Nicola Tucker became a volunteer firefighter about four years ago, she wanted to make a difference in her community, and she continues to enjoy the work because of the people she meets and skills she has learnt. And as if broking and firefighting aren’t enough, Tucker has also taken up beekeeping. After seeing a post on a local community Facebook page advertising a
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beekeeping workshop, she decided to give it a go. The MPA Young Gun already had a vegetable garden and knew that bees would improve its health and yield, and of course it would mean she could harvest her own honey! Bees are most active in summer, so this is when Tucker spends the most time with them, but she adds that they pretty much look after themselves.
“You’re basically just a caretaker as the bees are essentially self-sufficient,” she says. Tucker checks her bee hives every few weeks to ensure they are healthy and that the bees have enough space for their honey collection and offspring. “When I started, I never knew how interesting bees were. I’ve loved what I’ve learnt from them; it’s never-ending.”
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No jargon busting required.
When customers rely on you for just about everything bar the kitchen sink, it pays to partner with ING. Our simple home loans require no jargon busting. Australia’s most recommended bank • Comprehensive product range —home loans, commercial loans, everyday accounts, savings, superannuation and insurance • Expert assistance and dedicated support
To find out more, chat to your ING representative or visit introducer.ing.com.au For the curious: Information is correct as at date of publication and subject to change. All applications for credit are subject to ING’s credit approval criteria. Any advice in this advertisement does not take into account your or your customers’ objectives, financial situation or needs and you should consider whether it is appropriate for you or your customers. Before making any decision in relation to any of our products you and your customers’ should read the relevant Terms and Conditions booklet, fees or limits schedule or relevant Product Disclosure Statement available at our website. Products are either issued or are promoted by ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823. ING “Australia’s most recommended bank” according to Nielsen Consumer & Media View May 19 – October 19 (n = 11613) when compared by customers of 18 other banks operating in Australia. ING 3098 02/20
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