7 minute read
PAA
By Lauren Driffill
THE GEN-Y PERSPECTIVE
Lauren Driffill has been with the PAA since April and offers some valuable insight into the industry. Here she offers a fresh perspective from the next generation of potential clients.
As 2013 comes to a close we can reflect on what has been a year of change for the financial advice industry and mortgage advisers in particular have seen many legislative changes which have begun to alter the way they do business. With LVR restrictions coming into play advisers have been given the opportunity to provide a range of clients with what banks cannot, to get them into a home. Finding new ways to attract clients in the low LVR space, as well as retaining those who are now wary of purchasing a home has been at the forefront of many advisers minds.
When I walk into a bank seeking advice on a home loan, do I really get advice? I am probably going to be offered a range of products which may or may not be relevant to me based on whatever special offers or incentives are available at the time. It is unlikely I will truly be guided through the process. This is where mortgage advisers have the opportunity to separate themselves, adding value to the services provided by doing more than just ‘going through the motions’.
There are the obvious things that consumers have come to expect from an adviser - offering refinancing options, seeking out alternatives where necessary, identifying potential issues that may arise in the future which will affect my ability to service mortgage repayments. Then there are the added extras – getting to know me, helping me to understand exactly what is happening each step of the way through my mortgage application and acting as my trainer when it comes to the world of finance and mortgages. When I consider the process of purchasing my first home it is hugely overwhelming, and a little bit frightening, while at the same time being an exciting milestone. In choosing an adviser to guide me through the process I want to know that I have the best person for the job .
MAXIMISE PROFITS
Going the extra mile is something that I see much less of these days. Everyone rushes through sales in a bid to maximise profits or commissions, be it when I am buying a television or getting a manicure. This often means that customer service takes a back seat. It doesn’t just take a bad experience to change my view of the services provided, it can be the realisation that there is better on offer elsewhere. It comes back to the old adage: quality, not quantity. In any service based industry, if you focus on quality then the quantity will follow. If I am your client, the better the service you provide me, the more likely I am to seek you out again in the future or recommend you to friends and family. Word of mouth is an extremely powerful form of advertising, and negative experiences do not just mean bad service!
How would you feel if you found out that your friend goes to a similarly priced hairdresser to you, but while you get the basic cut and blow dry with no bells or whistles, she gets offered a flat white, enjoys a head massage during the shampoo, walks out with advice on which products are best suited to her hair type, styling ideas, and perhaps a
Lauren’s Top Five Tips for Mortgage Advisers – A Client’s Perspective
➊Clarify everything. Make sure I have a clear understanding of what is going on every step of the way. Be sure to clarify any points I am not clear on, and ask me each step of the way if I need you to explain further or run through anything again – I might be too shy to ask. Don’t be condescending, but acting as an adviser means coaching me through this – and the more I understand the easier your job will be in the long run.
➋Listen and make a connection. This is not just about recalling assets and liabilities, this is about gaining a well rounded understanding of who I am in a way that allows you to tailor your service. Connect with me – find common ground.
➌Exceed my expectations. Go the extra mile, and don’t be afraid to point it out to me. If you can see room for improvement in my current situation do not be afraid to make suggestions. I may initially see you only wanting advice on purchasing my first home, but you have the opportunity to provide more than this.
➍Use technology to your advantage. Do you have a smartphone or a tablet? Use it! In an increasingly paperless world these are key tools which will save you time, allow you to be more mobile and are hugely cost effective. There are a variety of apps and programmes available to help you here, and these are the tools that as a Generation-Y am familiar with, and most comfortable using.
➎Up the anti. Arm yourself with the knowledge you need to be successful in providing me with the best possible service. When creating your Professional Development plan for 2014 remember to ask us for any assistance, and keep in mind that it not need to be solely mortgage related. There are a wide array of workshops that will give you an edge in customer service and communications. I want to know that I am dealing with a competent adviser.
free product sample. Suddenly your perfectly satisfactory haircut is not looking so good, and you are now more probably considering going to your friend’s salon next time.
HUGE PROBLEM
Arguably one of the most valuable things you can do for clients is educate them on their finances. Financial literacy is a huge problem in New Zealand, with many adults having little or no understanding of basic principles such as budgeting, saving for retirement or the home loan process. When I joined this industry as a fresh faced 22 year old many of the basic terms were unfamiliar and confusing. When first dealing with advisers it was not uncommon for me to misinterpret what I read or heard – often without the adviser realising!
Educating yourself is important too. A key part of my role at the PAA is to assist advisers with their CPD. Keeping on top of professional development is key in keeping on top of your game. When I am talking to someone about my finances I want to know that I am dealing with someone who is well educated and has the most up to date information. Invest in yourself! This is not about gaining exactly 10 structured hours a year (watch this space for Code of Professional Conduct changes!), it is about maximising your career. I get a lot of emails from RFAs who are unsure of their CPD requirements. While you are not bound to the Code of Professional Conduct like AFAs, you are still expected to demonstrate the same qualities of care, skill, and due diligence. The easiest way for you to do this is by regular CPD.
In such a fluid and dynamic industry none of us can sit back and say that we know it all – there is always new information, better practices to share, skills to brush up on or additional products and services to wrap your head around. The FMA remind us that CPD is not a target to hit, but that it is in place to protect clients and ensure that you are able to demonstrate competence, skill and knowledge. As with any industry, the more you know the more likely you are to be successful.
Perhaps a lot of your clients are small business owners? Make the effort to attend our Communicating with Small Business Owners workshop – not just because it will give you five structured CPD hours, but because it will give you a toolkit of new skills and provide you with a deeper understanding of your clients. Perhaps you could brush up on your Business Writing (it is amazing how many of the basic grammar functions are forgotten thanks to spell check and secretaries!), take a Basics of Risk Insurance course to expand your scope, or challenge yourself with a public speaking course.
With the proposed changes to CPD next year AFAs are going to find themselves taking a lot more responsibility for their own learning. Your Professional Development Plan (PD) will become your bible, and will dictate what will be classed as structured CPD for you. Remember, this will differ between advisers depending on what they have identified in their PD plan as areas to improve on. Recognising areas for improvement is an important skill, and one that many often struggle with. Most people find it difficult to identify areas they need to improve, and advisers are no exception. The PAA team is happy to assist in identifying any areas you may wish to include in your PD plans. ✚
