FAST CEO Brendan Wright explains why the time is ripe to diversify, why brokers who don't could miss out – and how to do it.
Are commercial lending and asset finance part of your value proposition? If the answer is no, then you could be missing out, says Brendan Wright, CEO of FAST.
With 46-50% of home loans now being written through either a broker or third party, Wright believes that there is similar momentum happening within commercial lending.
“Business owners are more and more turning to quality brokers who can help them,” he says.
“The fact and reality is that business owners live and invest in houses too, so that’s the whole opportunity and theme for brokers across not just residential, but commercial and asset finance.”
Why brokers should diversify
According to a recent FAST survey, over the next 12 months 89% of brokers are prioritising branching out into commercial lending, asset finance or both.
There are a few reasons why brokers are taking the leap into diversification, adds Wright.
“One is to spread the revenue and the client base of a broker,” he says. “It provides more of an opportunity to generate revenue.”
“And when you have an evolving and changing economic environment, having those different income streams can help you develop and grow your business through challenging times.”
Moreover, Wright says that brokers are probably meeting regularly with small business or business owners, so they should consider meeting all their needs, rather than just residential.
Where to go for advice
To get the support and insight brokers need to go about diversifying, the obvious place to go is to their aggregator, says Wright. Other key players that aren’t worth dismissing are the lenders.
“Brokers can choose to identify diversification opportunities and have an aggregator that can support them in that space and connect them with the lenders that have the right product and services to meet the needs of the clients and those opportunities. That’s the best way to go about it.”
Wright also says aggregators need to have an effective and efficient technology platform, particularly in this constantly changing environment.
“Aggregators need to have that available to their brokers to support them running their business, lodging transactions, understanding their customer base, marketing and connecting them with their customers.”
Related:
Diversifying in mortgage broking: Not for the faint hearted
Is your brokerage planning on diversifying? Share your thoughts below.
With 46-50% of home loans now being written through either a broker or third party, Wright believes that there is similar momentum happening within commercial lending.
“Business owners are more and more turning to quality brokers who can help them,” he says.
“The fact and reality is that business owners live and invest in houses too, so that’s the whole opportunity and theme for brokers across not just residential, but commercial and asset finance.”
Why brokers should diversify
According to a recent FAST survey, over the next 12 months 89% of brokers are prioritising branching out into commercial lending, asset finance or both.
There are a few reasons why brokers are taking the leap into diversification, adds Wright.
“One is to spread the revenue and the client base of a broker,” he says. “It provides more of an opportunity to generate revenue.”
“And when you have an evolving and changing economic environment, having those different income streams can help you develop and grow your business through challenging times.”
Moreover, Wright says that brokers are probably meeting regularly with small business or business owners, so they should consider meeting all their needs, rather than just residential.
Where to go for advice
To get the support and insight brokers need to go about diversifying, the obvious place to go is to their aggregator, says Wright. Other key players that aren’t worth dismissing are the lenders.
“Brokers can choose to identify diversification opportunities and have an aggregator that can support them in that space and connect them with the lenders that have the right product and services to meet the needs of the clients and those opportunities. That’s the best way to go about it.”
Wright also says aggregators need to have an effective and efficient technology platform, particularly in this constantly changing environment.
“Aggregators need to have that available to their brokers to support them running their business, lodging transactions, understanding their customer base, marketing and connecting them with their customers.”
Related:
Diversifying in mortgage broking: Not for the faint hearted
Is your brokerage planning on diversifying? Share your thoughts below.
