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In the chair
With Jan Kirstein
FBAA Global Study Report
INCREASING in age INCREASING in debt A New Focus For Brokers
21 FBAA INFLUENTIAL
Blake Buchanan, Gerald Foley & John Kolenda talk about comprehensive credit reporting
24 FBAA 2016 NATIONAL CONFERENCE
Meet the guest speakers & book your seats
32 VIDEO MARKETING
The play button... The most powerful weapon on the web
34 BROKER FASHION
Joshua Heath gives 3 tips to impress someone in the first 3 seconds of meeting
37 broker news 38 The rich and the young are ready to robo
Ignition Wealth CEO Mark Fordree introduces us to the future of digital financial advice
The man fueling
the future of broking in australia
EDITOR & HEAD OF CONTENT Peter White SUB-EDITOR Krystal Camilleri ADVERTISING Krystal Camilleri JOURNALIST Tony Peterson CREATIVE DESIGN & PHOTOGRAPHY Jodi Kite Darren Paterson Krystal Camilleri TELL US WHAT YOU THINK We appreciate hearing from readers. If you have feedback, news or have a story idea you would like us to cover, please contact us using the below details NEWS, ADVERTISING AND ADMINISTRATION e: firstname.lastname@example.org p: 07 4721 1174 w: www.fbaa.com.au
Nothing is more powerful than
an ideA whose time has come.
National Finance Brokers Day 2016.
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In The Chair with Jan Kirstein
On first inspection, you may notice the new format and contemporary look of Broker, and how easy it is to find what you are looking for. You will also find the very latest industry news, events, information and issues affecting the Brokers of Australia. But it shouldn’t come as a surprise. When it comes to communicating with our members, the FBAA has always been at the forefront of innovation. Having a stable board and management means we are able to come up with new ways of helping members who are doing “battle at the coalface”. That was the reason for our meeting in July. All Directors and State Presidents came together in Adelaide, to hone and refine our strategies, in order to make sure we are in the best shape possible to take advantage of opportunities ahead. In every sense this is your magazine, so feel free to send feedback and story ideas for future editions. Welcome to the new look Broker Magazine. Yours, Jan Kirstein DipFS, DipFP, MAICD, FBAA Life Member Executive Chairman of Board
FBAA’s Global Study Report
The global research that identifies world’s best practice in the Mortgage Industry.
FBAA’s Global Study Report
here are only a few more months left in 2016 but at our organisation, the FBAA, there is still plenty of work to do before we break for Christmas. The subject that’s attracted most resources and attention is the report being written by ASIC on how home loan commissions are paid to mortgage brokers. Right from the start, we have taken the industry lead on this matter and work is well underway on our Global Study Report that we will present to the Federal Minister in December.
FBAA’s Global Study Report At the heart of this report will be global research that identifies world’s best practice in the Mortgage Industry. By looking at how brokers are paid in six overseas markets we intend to show how Australia can continue to avoid problems faced in other jurisdictions, without the need for stifling and expensive regulation. Accordingly, in October I will be heading to New Zealand and then to the UK to speak with representatives from government, banks and industry bodies. Another group of directors will be gathering intel from as far afield as the USA, and we will undertake separate
research into European, Canadian and South African markets. The report will then be used to unite the entire industry behind an agreed position and to show that the current model of payment of baseline commissions delivers the best outcomes for the borrower. I’m confident the result will show that we are already financially competitive and fundamentally sound when it comes to the current commission environment.
One on One Once completed we will call on our relationships with regulatory bodies and government to present our case using direct dialogue. As Executive Director and a Registered Government Lobbyist, I believe that the personal but businesslike approach is far more effective than using an external lobbyist. The information exchange is first hand, and not subject to someone else’s interpretation. We are also fortunate that the Minister for Revenue and Financial Services Ms O’Dwyer, whether it be discussing broking commissions or clawbacks, has always
been a great listener where the FBAA is concerned.
Watching brief Your Association is also maintaining a watching brief on Comprehensive Credit Reporting (CCR) which pertains to credit ratings and other information that sits on an individual’s credit file. I have no doubt that within one or two years, we will see changes resulting in more information being recorded and used to assess eligibility for any sort of finance, including home loans.
Brokers Day Congratulations must go to Suncorp Bank’s Dino Pacella, who made the first National Finance Brokers Day a reality. Thanks to Dino, and the support from the wider industry, customers are reminded of the key role brokers play in helping
Australians achieve their financial goals. Brokers Day is now a permanent fixture on the finance calendar.
Broker Magazine Finally, I hope you like the new look Broker
Magazine and trust there is plenty of interesting and informative information. Give us feedback, let us know how we are travelling and suggest topics that you would like to know more about. You are also welcome to submit articles,
which will be considered for publication subject to space and time constraints. As with all aspects of the FBAA, itâ€™s your Association, so make the most of it.
Executive Director Government | Media | Strategy
Whatâ€™s the FBAA been up to? Check out the latest edition of the FBAA News
INCREASING in age.
Research is showing that rather than decreasing debt as they age, many older Australians have been using the equity in their homes just as they would an ATM machine.
INCREASING i n a g e . INCREASING i n d e b t .
know a lot of readers would be thinking the first aggregator article would be all about the broker remuneration review. There has been so much written and spoken about this, I honestly believe I don’t need to add to it. So I am going to surprise you with something different that we are currently seeing in the industry. Over the years, what has transpired is that we have seen an increased number of Australians reaching retirement with mortgages that were unheard of in our parent’s days.
highest for people aged 55 and over.
18% OF OVER 45’S HAVE UTILISED EQUITY IN THEIR HOME
AUSTRALIANS 65+ STILL WITH A MORTGAGE
So the question would have to be “what the heck are they spending their money on?”.
HAS RISEN BY 28%
Well here it is … Private health insurance, private school fees, renovations, computers, cars, holidays and other
Research is showing that rather than decreasing debt as they age, many older Australians have been using the equity in their homes just as they would an ATM machine. A study by the Australian Housing and Urban Research Institute (AHURI) found an increasing amount of Australians over 50 are extending their mortgages rather than following past trends of down-sizing or selling up. The report showed 18% of over 45’s utilised some or all of their equity in their homes in comparison to only 13% a decade earlier. Even more interesting is the growth was
of those retirees with a mortgage, 74% of them are still paying off their owner occupied home.
“lifestyle” expenses. Yes there are children crying over lost inheritances all over the country tonight. ING Direct released data this year that stated the amount of Australians 65 years and over still with a mortgage has risen by 28% in the last three years. Additionally
A report by CPA Australia found similar results of increasing debt for aging Australians and that compulsory super rather than being used to improve lifestyle in retirement is instead being used to pay off debt. For many, knowing that super will eventually be available is actually giving comfort to increase debt. What is being forgotten is if super is being used to pay out debts it leaves little left over for an enjoyable retirement. Having mortgage debt close to retirement can be a risky game. Life can present unforeseen changes and having a sizeable mortgage leaves little room to manoeuvre if unexpected events present. For example a divorce in later years may lead to selling a property to pay out the debt which may leave little for either party to purchase another property. Even without an unexpected event occurring, people may
find themselves in a position where they may need to make hard decisions about where they are going to live in retirement as there is nothing in their price bracket in the areas they were once living. Mortgage brokers will no doubt come across clients who may wish to take the risk of going into debt without thinking about their future. The good news is research shows that many clients when taking a mortgage are open to discussing their overall financial needs so brokers are in a good position to encourage
clients to consider options that will help protect their future. Hmmm... could it be that the Reverse Mortgage Product could be making a comeback?
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A new focus for Brokers
Customer Lifecycle Management â€“ the new focus for finance brokers?
A new focus for Brokers D
upfront, and send a monthly newsletter or birthday card each year, which are fine, but don’t really demonstrate long-term added value for the customer. Please refer to
Whilst I agree that on the face of it, many finance brokers are doing a good job managing this cycle, it is often in the later stages of “post-conversion” that further improvements can be made, leveraging the great work done by diversifying your business capability.
iversification has been a primary focus and catchcry for the finance broking industry. Some have gone so far as saying “diversify or die”. We agree and support this message, purposely engineering our products and policies to ensure that we make the diversification opportunity a reality for all finance brokers. However, whilst diversification is fundamental to a broker’s future, we believe another key factor for finance broker businesses to consider right now is their Customer Lifecycle Management strategy, as this could be the key to building a sustainable business over the long-term. Customer lifecycle is the progression of stages a customer moves through from the initial consideration to use your products and services, to conversion, and lastly to the post-conversion service experience.
Customer Life Cycle illustration.
At La Trobe Financial, we are focused on the “strategy” of retention, which for us is to be able to cater for more clients’ needs over their life’s journey.
Two key components of post-conversion customer lifecycle management to consider are:
Our recent thinking around “life’s journey” led to the development of our two most innovative product solutions. The first being our Parent-to-child (P2C) loan, which tries to address the affordability issue facing many young Australians looking to enter the property market; Secondly, our Aged Care loan, another innovative product which helps make the transition to an Aged-care facility much smoother by removing the need to quickly sell the family home in order to raise the required Refundable
1. Developing the customer relationship –
Develop the relationship through listening and learning to best understand the customer’s needs, which allows you to spot opportunities to assist further, building trust over time.
2. Retaining the customer relationship –
Retention sounds obvious, but often there is no clear strategy to do this other than to give great service
FINANCING EVERY LIFE STAGE
GETTING ONTO THE PROPERTY LADDER
BUILDING A CAREER
Cash out for the wedding and honeymoon
Credit to start business
Building a family home
Purchase the ﬁrst home
Full-doc residential home loan
Full-doc residential home loan
Lite-doc residential loan
Residential construction loan
Providing solutions for your customer’s lifecycle will not only create additional revenue opportunities, but will enable you to showcase your abilities as a true finance professional, recognising opportunities before your customer even has to ask. Now that’s making a difference!
Over time as you refine and analyse your marketing techniques in order to crosssell various opportunities,
N ENT IO RET N CON VER SIO
Purchasing business premises
Lite-doc residential loan
Investing in property development Development ﬁnance
The Customer Life Cycle - Source: E-Metrics Business Metrics For The New Economy by Jim Sterne and Matt Cutler
VP Chief Lending Officer, La Trobe Financial
Purchasing investment property
Upgrading the family home
We encourage brokers to think about whether they are actively catering for their customer’s full lifecycle of needs. If not, now is the time to act or risk losing your customers to someone that can.
So as you can see, we literally cater for a customer’s first and last mortgage requirements, as well as all of their other mortgage needs in between including when “life events” happen (such as divorce, illness etc.).
The Customer Life Cycle from Introduction to Loyalty.
you will be able to measure the Customer Lifetime Value, which is the prediction of total value that a customer brings to your business over the entire lifecycle of their relationship. This may help with budgeting and also increase the value of your business, which is obviously important as you move through your own “life journey” into retirement.
Moving into aged care facility Age Care Loan
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Broker. ISSUE #1
FBAA INFLUENTIAL This issue we ask... Comprehensive Credit Reporting Do you think this will have a negative or positive impact on the industry, and on lending standards?
Comprehensive Credit Reporting Do you think this will have a negative or positive impact on the industry, and on lending standards? By adopting comprehensive credit reporting into the business models of lenders, it has the propensity to reward good credit behaviour by allowing consumers to negotiate better deals, as well as allowing institutions to tailor their products further based on the applicant’s ‘creditworthiness’.
BLAKE BUCHANAN GM of Aggregation, eChoice
omprehensive credit reporting has the ability to counter-balance and redress the impact of negative credit reporting, which is inherently a positive step for all industry participants. By including ‘positive’ credit reporting into the post-application process, it provides the vehicle for a clearer and more accurate picture to develop in the finance space on an individual’s credit behaviour. However, if comprehensive credit reporting is going to realise its intended purpose, all lenders should be encouraged to adopt it in order for the benefits to be fully realised by consumers and provide a dual reason for both parties to increase their overall level of engagement with each other.
This will offer a much fairer appraisal of an individual’s overall credit landscape, providing lenders with a more detailed level of information to make decisions more in context with the borrower’s complete credit picture. We would also expect that by putting a greater spotlight and focus on positive credit behaviour, it will lead increasing numbers of consumers to adopt more prudent financial management behaviour over time. Tiered pricing is a likely outcome from an industry wide adoption of comprehensive credit reporting but we only see this as supporting the continued competitiveness of the lending landscape and that brokers embracing this as yet another business opportunity, will be the ones that benefit.
GERALD FOLEY Managing director National Mortgage Broker
The introduction of
Comprehensive Credit Reporting should have a positive impact on the mortgage market, but only if all players commit to the program, as we move closer to a true risk versus reward environment. With lenders being placed in a better position to ascertain a prospective borrower’s previous credit history – and using that information as a guide to likely future performance – they should be able to offer lower interest rates given likely exposure to losses on ‘bad’ loans being mitigated. For consumers, creating and preserving a ‘good’ credit score will make future borrowing easier and allow them to attract better pricing on their borrowings. On the other side, borrowers
who have built a ‘poor’ credit history may start to find credit not as easy to obtain, and even if it is, will be forced to pay higher than lenders’ standard rates. As consumers become more aware of the longer term impact of their poor credit behaviours – even as simple as being late in paying a mobile phone or utility service fee - there should be improvement in personal credit scores. As part of this there needs to be more education, starting from school leaver age, on the importance of how a ‘poor’ credit history will impact them in the years ahead. What is important for comprehensive credit reporting to become embedded in our market is that all credit providers agree to provide reporting on both positive (good payment history) as well as negative (defaults, late payments) customer activity so that a consumer’s full position is available for future reference. Lenders who do not subscribe to providing data on their poor performing customers can hardly expect to benefit from others who do provide data across their whole client dealings. It will be interesting to see how the market embraces this new environment.
currently surrounding the support of the new model, it will take some years before the industry is totally behind the changes and we have enough meaningful data to highlight the true benefits of the new structure.
JOHN KOLENDA Managing Director 1300HomeLoan
I believe positive reporting
will help disrupt a long standing traditional credit reporting methodology and provide consumers with potentially much broader benefits including better pricing, faster approvals, wider choice of products and more competition across multiple product lines. Positive reporting in other countries has helped consumers achieve better pricing based on a more favourable rating on a rate for risk methodology. It can also potentially support improvement of processing and approvals, product innovation and offer more targeted pricing models for the benefit of consumers holding positive rankings.
But eventually when we get this support and robust data we will see a lot of product innovation and wide ranging consumer benefits. This will apply to all products from home loans to credit cards, asset finance, personal loans and commercial loans. The changes will create wide ranging competition for consumers across all forms of finance and allow lenders on all product lines to compete against the majors on a more even playing field. In countries where they have positive reporting structures, we know that lenders are better equipped to price more effectively. They can target specific consumers based on their overall profile and design products and pricing more appropriately for consumers across the spectrum.
Due to many industry issues
Do you have a topic you would like us to cover? Send it in to firstname.lastname@example.org
FBAA 2016 NATIONAL INDUSTRY CONFERENCE Bigger, Better, Stronger. Be the best in the business Today’s mortgage market is a hectic place. With the ever-evolving demands of consumers, lenders and emerging technologies, the fast competitive industry is waiting for no one.
A one-of-a-kind industry conference for mortgage brokers around Australia, the FBAA has gathered together the most fascinating and informative business speakers into a unique one-day event.
Whatever business challenges you face, we want to arm you with practical tools and savvy knowledge to be bigger, better and stronger than the rest of the pack. Furthermore, we’d love to do it all in style.
Who should attend?
Industry leaders, expert advice and the famous Gala event - The FBAA is hosting 2016’s National Industry Conference, “Bigger, Better, Stronger” at the brand new Sea World Resort Conference Centre.
FBAA’s National Industry Conference is an essential event for practitioners in the mortgage broking industry who want to build a bigger, better and stronger business, brand and future. Small business owners, sole traders, BDMs, new to industry to senior executives: this event is for anyone who strives to be the best in the broking business.
check out the preview from the 2015 conferEnce PAGE 24
Guest Speakers We’ve popped the champagne and invited the best speakers in the industry, to share their expertise and knowledge on making your financial business bigger, better and strong than ever before.
Mark Bouris -
Natasha Hawker –
Adam Franklin –
Detective Senior Constable Graeme Edwards –
Allan Pease -
Catriona Rowntree -
Founder and Executive Chairman of Yellow Brick Road, host of Channel 9’s Celebrity Apprentice and notable game changer, Mark knows a thing or two about growing a successful brand from the ground up.
With 12 years experience as Investigator in the Fraud and Cyber Crime Group for the Queensland Police Service, Graeme is the trusted source of information for those navigating the new online space of financial services.
Having personally hired, managed and fired over 15,000 employees as well as being the Founder and Managing Director of Employee Matters, Natasha is the gun in the industry on employee relations within small businesses.
Also known as “Mr Body Language”, Allan is a researcher and teacher in the psychology of selling, relationships and human communication. Allan will equip you with the knowhow in the business of negotiation.
Best selling co-author of ‘Web Marketing That Works’, writer of Australia’s #1 business blog, and Marketing Manager of Bluewire Media, Adam is the industry guru of all things Digital.
Much loved TV presenter the host of Nine Network’s Getaway travel show, Catriona is this year’s MC extraordinaire. The consummate host and a very popular public speaker, Catriona is spontaneous, witty and always on the money.
PLACES ARE LIMITED - don’t miss out! Date: 25th November 2016 Time:
8:00 AM – 4:00 PM EST
Cost: FREE FOR FBAA MEMBERS $99.00 for Non-Members Venue: SeaWorld Resort
Main Beach , QLD 4217
Australia Contact: Leah Renwick Phone: 07 3847 8119 Email: email@example.com
CLICK HERE TO REGISTER NOW
FBAA 2016 Promo video
2016 BET TER
GET IN TOUCH WITH YOUR STATE REPRESENTATIVE. Would like more information on an FBAA Event or PD Day that’s happening in your local area? Maybe you have some feedback or an issue you would like to discuss? MARY KOWALSKI Western Australia - State President
JOFF O’SHANNESSY South Australia - State President
Managing Director Synergy Financial Solutions
Director Finance Opportunities
Mobile: 0416 535 606 Email: firstname.lastname@example.org
Mobile: 0419 820 149 Email: email@example.com
STEPHEN RASMUSSEN Queensland & Northern Territory - State President
GUS GILKESON New South Wales & ACT State President
Managing Director Tailored Lending Concepts
Managing Director Grow Capital
Mobile: 0412 295 875 Phone: (07) 4615 5082 Email: firstname.lastname@example.org
Mobile: 0423 001 002 Email: email@example.com
BRENDON KURTZ Victoria & Tasmania - State President State Manager VIC/TAS Outsource Financial Mobile: 0478 040 714 Email: firstname.lastname@example.org
FINANCE BROKERS ASSOCIATION OF AUSTRALIA LIMITED Street: Post: Phone: Fax: Email: Web:
First Floor, 386 Logan Road, Stones Corner Qld 4120 PO Box 234, Stones Corner Qld 4120 1300 130 514 (07) 3041 0350 email@example.com www.fbaa.com.au
National Finance Brokers Day 2016. IT’S ALL ABOUT PROMOTING THE GOOD WORK BROKERS DO THAT HELPS EVERYDAY AUSTRALIANS REALISE THEIR DREAMS.
On the other end of the phone, from the other side of the continent, Dino Pacella sounds a happy man. And perhaps a touch relieved.
he Suncorp Bank Business Development Manager is back home in Perth, after seeing his idea for an inaugural National Finance Brokers Day become a reality. And by all accounts, it was a great success. The idea for the event came from observations Mr Pacella made after moving to the broker side of the banking business, after ten years in the direct banking channel. “When I came over, I could see that customers still didn’t have a clear picture of what our value proposition was.” “They weren’t aware of the full range of advantages they could receive by dealing with
a broker, or the full service proposition brokers bring to the table.” “To the point where some thought they had to pay to use a broker, when in around 95% of the time that isn’t the case.” The day, marketed under the banner “Finance Brokers don’t sell products, they help make dreams come true” culminated in a live streaming of a 30-minute discussion, featuring a panel of industry heavyweights that covered a wide range of topics - from the role finance brokers play in the market place, to the many advantages of using a broker. The panel included FBAA’s Peter White, CEO of lending at Yellow Brick Road Tim Brown, Echofield founder Paul Ryan, and the MFAA’s Stephen Hale. Joining them was special guest, founder of Alphabroking Mentoring, Therese O’Neill.
NFBD Founder, Dino Pacella, chatting with Yellow Brick Road Wealth Management Executive Chairman, Mark Bouris, about National Finance Brokers Day and why finance brokers are so important.
National Finance Brokers Day 2016 cont... The public, who were the target audience of the communication, were also invited to interact through social media channels and by submitting questions to segments such as “Ask an Expert”.
the UK, and it’s definitely going to happen here.”
Like all things designed to challenge perceptions, the National Brokers Day required much preparation and plenty of work behind the scenes.
Dino predicts that as technology changes and online lenders come into the market, the need for events like National Brokers Day will be even greater.
Central to the success of the day was endorsement and support from Peter White at the Finance Brokers Association of Australia.
“Their (online lenders) presence will mean competition, more products and more education, which will help brokers and consumers alike.”
“What a great way to get our message out there with the thrust being customer awareness. The more a customer knows about what we do and how we can help, the better” Peter said.
National Finance Brokers Day is now part of the way the industry does business and will be a permanent fixture that takes place every year, on the third Wednesday in August.
A final blessing of the event was provided by Yellow Brick Road Executive Chairman, Mr Mark Bouris, who saw changes in the banking sector as a great opportunity for brokers.
Already plans are in place for 2017, and while everyone is tight lipped, it seems seeing more customers face-to-face will be a priority.
“The banks know they can’t reach everybody so their reliance on brokers is going to grow. Banks also have to increase margins to maintain their profitability and the biggest cost is branches which is a fixed cost. The biggest opportunity to turn a fixed cost into a variable cost is by using a broker.” “Plus brokers only get paid when the deal is approved and settled” said Mr Bouris. “It’s happening in the US, it’s happening in PAGE 30
The last word on the day naturally goes to the man who started it all.
Between now and then, Facebook, YouTube, Instagram and LinkedIn accounts will be continually updated to assist consumers with insights and knowledge, not only into the broker market, but also with loan tips, market updates and much more. It’s all about promoting the good work brokers do that helps everyday Australians realise their dreams.
And Now, We Watch! By the end of this year video will make up 75% of all content viewed on the Internet. Why? For a start more and more people are viewing their content on their handheld devices and it’s easier to watch than read. The increase in available data in mobile phone plans also means that people are able to watch more video content so accessibility has risen dramatically. Add to that the Google vs Facebook video platform war and the push to own eyeballs through video grows even greater. Google owns You Tube. That means that posting videos on You Tube now affects your Google search rankings. Facebook have their own platform because they didn’t get to buy YouTube. That means that they want you to use their platform and if you put your YouTube video on your Facebook page, Facebook will punish you and lower the reach of that post. It’s all fun and games. Here’s the simple truth though. If you are in business you need to be incorporating video into your marketing and advertising. It is the most impacting way to reach an audience no matter where they are at and to showcase the qualities of your business that will help them when they need your services. Now, where do you start? Two places actually – a content plan and a strategy plan. The content plan is what will go in your videos, what style they will be, what sort of scripting, music, voiceover, visual art will you use and easy to answer questions like that. PAGE 32
The strategy plan is how many, when, where and who will you target. The strategy plan will guide your content plan so it really needs to come first. The content plan will then reflect the strategy and will also take into account what competitors are doing (you don’t want to be the same) and where the world sits at the moment around video. For example: Now to keep your customer engaged, a video should be limited to no longer than 2 minutes. A few years ago when video first started appearing online they were 10 minutes long! Three months ago Instagram wouldn’t allow videos longer than 15 seconds but now they can be up to a minute, so that has affected content for that channel. If it all sounds too hard, it doesn’t have to be. But it’s probably something you want to get some help with because video content is a very accurate reflection of your brand. It doesn’t have to cost the earth and sometimes you can leverage off what others have done. For example the FBAA has a great video called “why choose an FBAA broker” and members can access it for free and even add their brand to the start and end for a small fee. Essentially you get a video that cost thousands for a few hundred. It’s very snazzy stuff! Now you probably have other parts of this magazine that you’d like to read, so I’ll leave you with these few helpful hints. 1: Don’t expect a video to go viral. Even the creators of YouTube can’t tell you what makes a video go viral so its an unrealistic goal unless you can produce a 2-headed unicorn in your office. If so, then we’ve got a chance.
2: Nothing longer than 2 minutes. 90 to 120 seconds, that’s the magic zone right now for corporate branding/information videos. That will probably change too but for now it’s on the money. 3: Quality is key. That means a wellwritten script and good production values. Remember that people will watch before they read so this will be your first chance to make an engaging impression on a potential customer. 4: No nudity! Although it did work for Kim Kardashian, but that was a one off.
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BROKER STYLE One, Two, Three. That’s how many seconds it takes for you to be judged on your first impression.
’m constantly amazed by the lack of effort many business professionals put into their appearance. You only get one chance to make a first impression, so make it count by following my top tips for ensuring your peers, colleagues and potential new clients judge you at your best.
Tip #1 Put your best foot forward by paying attention to your shoes. They are one of the first things people notice and where the initial judgement of you begins. Always ensure your shoes are clean and polished, any scuff marks attended to and laces tied neatly in place. I encourage all my clients to own at least 2 pairs of quality work shoes which they alternate throughout the week. A good quality shoe can last you years ‘if’ you look after them, but remember they are not made to last forever and when they look worn out it’s time to replace them. Think about this, if you work 5 days a week, 8 hours a day, 48 weeks of the year, you will be wearing your shoes for 1,920 hours, not to mention the time spent getting to and from work and the over time. This is why maintenance and investing in good quality shoes is so important. Helpful hints to get the most out of your shoes - Own at least 2 pairs and alternate them throughout the week. Use cedar shoe trees to help draw away moisture and keep the shoe’s shape. Clean, polish and buff once a week. Resole them as they wear down.
Tip #2 James Bond and Barrack Obama, Meryl Streep (Devil Wears Prada) and Julie Bishop. Not normally names you see side by side. But, when I think of well suited men and women on the silver screen or power players on the world stage, they are leading the sartorial pack. There are three key points to follow when looking for a suit. Fit - Unless you are a standard size, which I can assure you, you’re not, then buying something “off the rack” will need to be tailored to fit your physique. I recommend having your suits “made to measure”. It’s cost effective, and will ensure the perfect fit every-time. Most made to measure specialists offer a ‘come to you’ service either in your home or office - perfect for time poor business professionals. If you are purchasing “off the rack” ensure you visit a tailor and have it fitted correctly. A good quality “off the rack” wool or wool blend suit should set you back upwards of $600 (plus tailoring). “Made to Measure” normally starts around $1000 and increases depending on the quality of the cloth.
Style - Where you’ll be wearing your suit and for what season will determine the style of suit you should be wearing. For example, you don’t want to be wearing a suit made of a heavy cloth during summer or travelling with one that will crease badly. Depending on your body shape the style of jacket you wear will be different too, not to mention small details like vents (the splits on the back) and the width and shape of the lapels. Details like theses are customised when purchasing “made to measure” versus “off the rack”. When shopping for a suit it’s important to explain what, where and when you’ll be wearing your suit to your tailor or shop assistant. They will advise you on the best options. PAGE 35
BROKER STYLE Cloth - How your suit sits on the body has
as much to do with the fit and style as it does with its cloth. Always opt for a suit made
of natural fibres like wool, cashmere, silk, linen or a blend. The cloth will mold to your body and breath better than synthetic options - not to mention feel nicer. Super this. Super that. What is Super cloth and what about the numbers that follow? The terms super 100 or 120 or 130 or 140 or 150 are what determine the material of your suit, which is the fitness of a wool thread. The higher the numbers are the better and finer the quality of the wool.
Fun Fact - Zegna is one of the biggest global producers of fine fabrics, supplying fashion houses Gucci, Yves Saint Laurent, Dunhill and Tom Ford. Founded in 1910, it continues to be managed by the fourth generation of the Zegna family and remains in family ownership. Next issue we look at accessories, how they say more about your personality than you think, and how best to care for your suit.
Tip #3 Nothing lets a first impression down more than messy, unkept hair. There are no excuses. My tips for both Men and Women are, • Choose a hair style you can achieve yourself each morning • Never leave the house with wet hair • A ponytail says I woke up late and did it in the car. Avoid them at all costs • If you colour your hair make sure you stay on top of your regrowth with regular touch ups • Clean shaven is always best. If you have a beard, make sure it’s well trimmed, and groomed into place • Keep your nose, ear and neck hair under control Joshua Heath is one of Australia’s leading corporate stylists. www.joshuaheath.com.au
Mirza & Heath are Australia’s leading Made to Measure specialist, providing exception suiting for both men and women. Receive a complementary Made to Measure shirt valued at $150 when you purchase a suit from our extensive Zenga or Loro Piana cloth collection. www.mirzaheath.com.au http://www.mirzaheath.com.au/m2m-now/
broker news desk In 2012, while serving in Afghanistan, Australian soldier Curtis McGrath famously told the medics rushing him to hospital that they ‘would see him at the Paralympics’. CONGRATULATIONS Curtis on taking out the gold at the Rio Paralympic Games. We’re proud to be a part of his journey and the journeys of our returning soldiers through our relationship with Mates4Mates. Congratulations from the Finance Brokers Association of Australia
The rich and the young are ready to robo Ignition Wealth CEO Mark Fordree introduces us to the future of digital financial advice.
n very simple terms digital financial advice - or â€˜roboâ€™ - is an opportunity to rapidly expand the financial advice market. The traditional method of financial advice leaves 75 to 80 percent of Australians unadvised; we offer a scaleable solution making it easy for advice practices to monetise these C and D clients. By significantly reducing the costs of onboarding and compliance we make it economically viable to engage with lower balance clients. This is a great incubation model as you can onboard clients at the beginning of their financial journey, ensuring that you are their adviser of choice when their circumstances lead them to require a full service advice model.
Everything we do today is mobile-first. Digital financial advice allows the advice industry to offer consumers the same level of instant, online service that they have come to expect in everyday life. Incorporating digital financial advice into your business practice ensures that your clients have access to their portfolio information 24 hours a day and allows you to communicate with them easily for effective and compliant engagement. Early hypothesis suggested that millennials would be the early adopters of this technology. This has proven to be true with recent Morgan Stanley research showing that more than 50 percent of both
Generation X and millennials would be open to using ‘robo-advice’. However, high net worth individuals have also proven to be enthusiastic adopters. (MyPrivateBanking’s report - ‘Investors’) Attitudes towards Robo-Advisors’ found that in fact high net worth individuals use online investment tools more than other investors and more than 70 percent of respondents think that tools can positively influence their wealth manager’s advice and decision making processes, as well as speeding up administrative processes to increase efficiency and convenience. They are raring to go and ready to Robo.
Mark Fordree is the CEO of fintech Ignition Wealth. Ignition Wealth sets the benchmark for digital financial advice (also known as ‘robo-advice’) in Australia. The company encompasses world class financial advice and innovative software technology. Mark is a financial markets professional with over three decades of experience in funds management, stockbroking, investment banking and venture capital. His experience includes senior executive roles at a number of Australia’s leading financial institutions. Mark is a frequent commentator and contributor to the financial press delivering insights and commentary and a macro view of the global and Australian financial markets as well as providing expert information on digital financial advice.
“There’s no doubt change is on the way. Change is never painless but the rewards will be worth the effort”.
THE MAN FUELING THE FUTURE OF BROKING IN AUSTRALIA After more than 4 years at Barclay’s Bank in the UK, Steve Weston is back, bringing with him an entirely new outlook for the Finance Industry in Australia.
teve Weston has been in banking and mortgage broking for over 30 years, holding senior leadership roles at St.George Bank, Challenger Financial and Advantedge where he was responsible for the PLAN, Choice and FAST aggregation businesses. Steve headed overseas in 2012 to head up Barclays Bank’s mortgage and personal loan businesses. It was at Barclay’s he saw firsthand a financial services industry in unchartered waters; one that was still hurting from the global financial crisis (GFC), and trying to come to grips with a new regulatory environment. Now after four years he’s back home in Australia, and from what he has seen so far, Steve believes the coming years are likely to be painful for the major banks and this will present an opportunity for mortgage brokers to take a larger share of the mortgage market. Steve took time out from his busy schedule to talk to Broker. Magazine. B: Steve, after four years away from home, what’s changed? S: The financial services market here is quite similar to when I left, which is surprising given what the rest of the world has been going through. B: Why’s that? S: Let me compare Australia to the the UK. In some respects
our banking markets are very similar but the UK banks have had a much tougher time since the GFC. In particular, a number of damaging conduct risk scandals have impacted UK banks in recent years. Not only has this damaged reputations, it has also resulted in more than $100b being paid out in customer compensation and fines. Only in recent months, we have begun seeing an uptick in similar customer conduct risk issues in Australia. These have been limited to the inappropriate handling of insurance claims and the inappropriate charging of bank fees. Only time will tell how endemic these issues are. B: What happened to mortgage brokers in the UK as a result of the bank scandals? S: At the end of 2009 when the GFC was really beginning to bite, brokers accounted for under half of all mortgages being written. Today they account for over 70%. B: How did it happen? S: There were a number of factors. Firstly, the reputational challenges experienced by banks saw more customers looking to firms they could trust with mortgage advice, and brokers were the natural party for them to turn to. In addition, brokers worked hard at ensuring they didn’t suffer the same fate as the banks with conduct risk issues and they are a
bit more advanced in their use of technology and big data (customer information). B: That is interesting. Any tips for brokers around these areas? S: There’s a general view our regulation works well, but that’s what we thought in the UK and look at what happened there! Brokers need to review their business practices to ensure that they are not leaving themselves exposed should the interpretation of regulations change in the future, as occurred in the UK. On average, brokers in the UK are settling between two and three times the number of loans each month that their Australian counterparts are. Whilst part of this is due to the UK having less part-time/life-style brokers, it is also due to the way brokers are using technology (including telephony/video contact and customer document solutions like Ezidox) and leveraging big data to both generate new business leads and to manage ongoing customer relationships. B: So how can Australia’s brokers and aggregators lean more from their UK counterparts? S: In October I will be taking a study tour of thirty Australian mortgage leaders to London to meet UK mortgage luminaries and industry body heads. This will provide an excellent
opportunity to discuss first hand the journey the UK industry has been on and to gain insights on how to get to 70% market share in Australia. FBAA, Executive Director Peter White will be travelling to the UK as part of the study tour. I have also set up separate meetings for Peter with the CEOs of the two main UK mortgage associations. This will enable the FBAA to establish relationships with their sister bodies and to take the learnings from the UK to work most effectively on behalf of Australian brokers. B: Is there any final advice you’d give Australian brokers who are apprehensive about the future? S: There’s no doubt change is on the way. Change is never painless but the rewards will be worth the effort. Look at ways to work smarter rather than harder and ensure you are dotting all your “I’s” and crossing all your “T’s” to protect yourself in a world of more intense regulation. Given the strength of their value proposition, there is every reason to be confident Australian brokers will see their market share increase to the levels being experienced in the UK. B: Thanks for taking the time to talk to Broker Magazine
Peter White speaks with Steve Weston on the FBAA National Road Tour
Looking for assistance with training and compliance? AAMC Training Group, in consultation with the FBAA, have designed a product which provides Finance Brokers with valuable tools for managing NCCP compliance requirements. The NCCP Toolkit provides: • An online handbook, taking you through all the ASIC Regulatory Guides and other relevant information • Necessary regulatory forms and templates Responsible Managers Training Program • Online short courses with associated CPD hour allocation • Financial Risk Management • Access to our online Learning Management System • Australian Privacy Principals • Responsible Lending Finance and Mortgage Broking Introduction Course • ASIC Credit Cases This short online course is ideal for anyone requiring knowledge • Fraud Awareness of the finance and mortgage broking industry, covering NCCP • Comprehensive Credit Reporting compliance, loan application process and common acronyms used • Supervising and Training Representatives within the industry. The course will benefit employers seeking more • ASIC Investigations and Enforcements robust training for their employees. Similar packages are available for Loan Support Staff and Credit Representatives To find out more about these opportunities contact our office on (03) 9391 3643 or email firstname.lastname@example.org
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â€œObstacles are things a person sees when he takes his eyes off his goalsâ€?- E, Joseph Cossman