To choose a Holistic approach to mortgage and protection advice or not (the Transactional approach) that is the question.
As we are all aware, mortgage and protection firms whether Directly Authorised or Appointed Representatives have been busy adapting to life in the industry under Consumer Duty. One of the key decisions under the new rules, has been to decide whether the Firm or Network should choose to offer advice to consumers on a Transactional or, on an Holistic basis. For some, taking the latter approach has perhaps been a natural extension of their existing proposition, although many would recognise that they, and colleagues, had followed the former route previously.
For many of us excellent advice and great service has been the driver for developing our Mortgage and Protection businesses year after year. The addition of Principal 12 now means that level of service and expertise results in consistently good outcomes.
However, the last 3 years have, for various reasons, provided our industry with some significant challenges as the impact of Consumer Duty has hit:
- Covid and the subsequent lockdowns and damage to usual incomes
- The invasion of Ukraine and subsequent political and economic disturbance and nervousness
- The September 2022 mini budget
- The interest rate rise and inevitable mortgage product price increases
- Softer levels of housing transactions
Despite all, here at Try Mortgage Network, we decided unanimously that the holistic approach to customer service was undoubtedly the way forward. Yet, it begets a change to conventional thinking.
Offering a holistic service of course it should not be forgotten is not restricted to those that require mortgage advice. There is a huge number of the population that do not have or may not have any need for mortgage advice but they too should benefit from the same level of advice by offering protection services and solutions too.
Customers who may well be deemed vulnerable for whatever reason, especially those who are not financially aware; may well be stuck in the rental market; alongside customers with more complex income streams and clients with existing/previous health issues for example should all be welcomed.
More broadly, providing solutions for individual customers, couples, partnerships, families and ensuring that their needs, circumstances, and objectives are met and protected, is at the very heart of a successful, professional, mortgage and protection broker firm. Whether that is one person or, a multiple adviser firm, the same principles apply.
Therefore, having regular contact with our customers to keep close track on their circumstances, and potential changes, is at the core of an Holistic service proposition. That’s not confined to the point where the customer approaches the end of a particular fixed rate product. Keeping in touch with customers regularly benefits all parties, consumers, and ourselves as advisers, minimising the potential for client harm.
Planned contact by the advising firm delivered consistently and well can lead to:
- Reinforcing the loyalty and trust between both parties
- More potential for repeat business and further opportunities to meet needs and deliver new solutions and advice
- Greater probability of referrals and recommendations in both mortgage and protection solutions
- Raising the profile of the advising firm and advisers
- Overall making the advising business more successful
We acknowledge that with change, comes the risk of resistance. From a Network’s viewpoint, a successful holistic service provided by their members to customers is something, moreover, that is evolutionary rather than revolutionary. Embedding change of this nature will require, at times, close support, training and a holding hand, allowing firms and advisers time to adjust to managing lifetime customer relationships and building more robust and successful business as a result.
For us, it remains critical that Network members have access to high quality technology support to manage the need for professional regular customer communication and should include:
- Easy to use Web based CRM technology
- Fully integrated mortgage and protection sourcing technologyIntegrated communication functionality within the technology via e-mail and SMS
- Integrated regulatory documentation compiled, completed, and stored within the CRM as standard
- And the capability to offer easy to use, task and diary management, to record key dates and capture key information
Equally, to avoid the potential for future harm, Advisers need access to a comprehensive range of lending and protection products (without the need for weighted premiums) and sourcing tools is a given.
Through targeted support and development, sound sensible compliance, high levels of trust and ethics, we believe Networks can lead their Firms and Advisers to deliver a rock solid, holistic based mortgage and protection advisory business.
For us, treating our members as individuals, is the key to embracing change and developing successful, holistic advice driven businesses.