NZ Adviser Fast Brokerages 2021

SPECIAL REPORT

FAST BROKERAGES

The Fast Brokerages and Fast Starters have shown how customer focus and teamwork can lead to growth even in uncertain times

CONTENTS

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Feature article .............................................. 2 Methodology ................................................ 3 Fast Brokerages 2021 ................................. 5 Profile ...........................................................

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SPECIAL REPORT

FAST BROKERAGES 2021

WINNING IN A VOLATILE MARKET TO SAY THAT New Zealand’s mortgage advisers have had a tough year would be an understatement. As if dealing with a major regulatory overhaul and completely revamping their businesses were not enough, advisers have also been going through a prolonged COVID-19 outbreak

worsened by the Delta variant. New Zealand was plunged into another major lockdown in August, and it soon became clear that this was no longer a “short and sharp” scenario like what the country had previously experienced.

If the challenges of this year have done

FAST BROKERAGES BY LOCATION

Logan Reardon, Loan Market

Auckland

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“It’s been great to be able to help so many people into new homes and new investments”

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Christchurch

1

Wellington

1

Southland

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one thing, they have showcased the incredible drive and resilience of New Zealand’s mortgage advice industry. Now in the fourth month of significant restrictions, Aucklandbased advisers in particular have their work cut out for them. From preparing for a new regulatory regime without in-person support from industry peers, broker groups or technology specialists, to staying in regular contact with clients as a traditionally faceto-face business model, advisers have come up against a raft of obstacles. Despite this, many have grown remarkably over the past two years.

To celebrate the brokerage teams that have overcome the challenges thrown their way and posted the strongest growth in revenue and settlement volume, NZ Adviser presents this special report on the country’s Fast Brokerages for 2021.

Impressive numbers The survey results paint an incredible picture of what has been achieved in recent years, showing how several advisers more than doubled their growth figures, expanded their teams, and invested significantly in technology and compliance.

The fastest-growing brokerages were Mortgage Supply Company Invercargill and Logan Reardon of Loan Market, which recorded 215% and 160% increases in settlement volumes year on year, respectively.

Reardon’s brokerage also saw a whopping 519% increase in revenue year on year – an incredible achievement in a year marred by uncertainty and volatility.

Nominees experienced an average of 116% revenue growth year on year, and an average

been great to be able to help so many people into new homes and new investments.”

“As part of our growth this year, one of my family will be joining the team as a mortgage adviser,” Reardon continues.

“It’s great to be already passing the knowledge down to him about the industry. We’re looking at further growth, and this year we’re on track to reach a significant number in settlements. If we can hit the $100 million mark, that would be a massive achievement given that we are only in our second full financial year.”

Clients as the main priority Another one of the Fast Brokerages is Prosperity Finance, whose founder Connie Wang has already been recognised as a Top

“I was confident that we could grow in any market condition, so long as we had the right strategy and were focused on our clients” Connie Wang, Prosperity Finance

METHODOLOGY To recognise the brokerages that have thrived amidst disruptions caused by the pandemic, NZ Adviser invited submissions for its inaugural Fast Brokerages report on 31 August. The research team asked brokerages to list their revenues and settlement volumes for the 2019/20 and 2020/21 financial years, in addition to other growth milestones.

The NZ Adviser team then evaluated the nominations to determine which brokerages performed outstandingly. Those that achieved over 30% growth in combined revenue and settlement volume were given 5-Star awards.

A total of 15 brokerages made the final list this year. NZ Adviser also highlights six brokerages as Fast Starters – those that have been in business for less than three years, but have already made their mark in the mortgage landscape. All of these brokerages have confirmed their resilience and cemented their position in the New Zealand mortgage industry.

48 of 97% growth in settlement volumes over the same period. Commenting on some of their most significant milestones, many advisers highlighted the strength of their team – reflected in an increase in the number of employees – as a key growth factor over the past 18 months.

“I started as a new adviser in July 2019, and I didn’t settle my first deal until the end of August 2019,” Loan Market’s Logan Reardon says.

“Since then, however, we have seen very rapid growth. I was new to the industry with no previous background in finance, and it’s

Adviser for 2021. Wang notes that this year has been tough for a number of reasons, including uncertain property market conditions. However, adding more team members has given her much needed time to work on her business and, as a result, Prosperity has achieved almost 90% growth across both settlements and revenue.

“I can attribute the growth of my company to several factors. Firstly, I decided to hire a second adviser after the first lockdown last year. Despite some uncertainty in the property market due to COVID-19, I was still confident that we could grow in any

brokers working for all winning brokerages

$136,938 average settlement volume in FY 2020/21

$931,740 average revenue in FY 2020/21

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SPECIAL REPORT

FAST BROKERAGES 2021

people in my team, and I have very high standards in my recruitment process. I believe choosing those people who fit our culture and share our values is more important than their technical skills,” she concludes.

WINNERS BY YEARS OF OPERATION

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3 years or less

6

Over 3-5 years

Less than 10 years

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“The rapid growth and success that I have achieved over the last couple of years is down to the amazing team that has supported me” Cameron Marcroft, Loan Market market condition, so long as we had the right strategy and were focused on our clients.

Having an additional adviser has allowed me to share my workload, and we can now get back to customers quicker and I can buy back some of my time. With that extra time on hand, I was able to sit down and work more on the business,” Wang says.

“The second factor is that we are constantly

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learning how to add value to our clients, and that’s really the purpose in our team’s DNA. We always put our client’s interests before our own, and over time, our clients come back to us because they know that we are knowledgeable, and they trust us fully.

“Finally, I allocate time to work on my business. I love learning, and I always apply that learning to my business. I have great

Teamwork does the trick Another familiar face among the Fast Brokerages is Loan Market’s Cameron Marcroft, who grew his settlement volume by almost $100m between the last two financial years and surpassed the $1m mark in revenue. He credits his team as being integral to business growth, and says that one of the most rewarding things for him this year has been increasing his role as a mentor.

“I believe the rapid growth and success that I have achieved over the last couple of years is down to the amazing team of nine staff that I have supporting me on a daily basis,” Marcroft says.

“During this time, I have also managed to mentor those in my team that want to step into an adviser role. I have just progressed one of them into being a qualified mortgage adviser, with two others doing their papers to become accredited by the end of the year.”

“My goal for the business over the next 12–18 months with my new structure in place is to be writing $500m a year in mortgages.

I want to build a sound and robust business that creates a successful career pathway for all of my staff,” he adds.

The results of this year’s survey clearly show that New Zealand’s mortgage advisers have overcome the odds. Their success signifies that more individuals and families have stepped into their first home or started on the path towards investment property ownership. For these clients, their adviser’s guidance and encouragement have definitely been valuable during a challenging year.

FAST BROKERAGES 2021 Fundmaster

Prosperity Finance

Phone: 0800 386 362 Email: dev@thefundmaster.co.nz Website: fundmaster.co.nz

Phone: 09 930 8999 Email: connie@profin.co.nz Website: prosperityfinance.co.nz

Kiwi Home Loans

The Lending Pad

Phone: 022 368 3240 Email: raj@kiwihomeloan.nz Website: kiwihomeloan.nz

Phone: 021 242 3136 Email: ryan@thelendingpad.co.nz Website: thelendingpad.co.nz

FINAX Mortgages & Insurance

Mikey Smith - Loan Market

GetSettled

Mortgage Supply Company Invercargill

Jenny Aitken Mortgages Onelife Financial Services Loan Market Central Loan Market Paramount Logan Reardon - Loan Market

The Mortgage & Loan Guru Twine Financial Advisers

FAST STARTERS 2021 GetSettled

Mortgage Supply Invercargill

Logan Reardon - Loan Market

Onelife Financial Services

Mikey Smith - Loan Market

The Mortgage & Loan Guru

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SPECIAL REPORT

FAST BROKERAGES 2021

Dev Dhingra Managing director, Fundmaster

FUNDMASTER

F

undmaster is an Auckland-based financial services firm that provides a range of advisory services, specialising in insurance advice, business loans and mortgages, both commercial and residential.

Founded by Dev Dhingra in the garage of a home in Pakuranga in 2012, Fundmaster has quickly expanded over the past year, putting together a multicultural team and setting up offices in Wellington, Hamilton and Christchurch. The company also

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Phone: 0800 386 362 Email: dev@thefundmaster.co.nz Website: fundmaster.co.nz

strengthened its team by appointing a new general manager, head of digital, and fulltime compliance analyst.

Fundmaster plans to onboard more advisers and expand its reach across the country, says Dhingra. He wants to leverage technology and data to empower advisers to meet customer demands. Due to the right tools, resources and education provided by Fundmaster, advisers will not just survive but thrive in a challenging environment.

“One of the key drivers of our growth will be delivering an innovation-driven solution to enhance adviser and customer experience.

We are making significant investment in our digital transformation with enterprisegrade tools to deliver a unique experience to advisers and customers, while changing our approach from being an advisory firm to a fintech firm,” he says. Fundmaster aims to make a big difference in its customers’ lives by going the extra mile for them.

FAST BROKERAGES

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