May I start by being one of those rare individuals to wish you a Happy New Year and actually mean it.
Most people throw that statement around while secretly looking forward to the second week of January in the hope that everyone has forgotten it ever happened. Personally, I have always been a huge fan of new beginnings. They give every single one of us a clean sheet with which to tackle life’s complexities and whether that is weight loss, monetary gain or, oh I don’t know, maybe write that first book, there really is no better time to create a whole new set of achievements for yourself.
Which is why we should take this opportunity to think about changing the way we get paid.
Oops. I said it out loud. I bet you’re not so happy now, are you?
Adam will already be stock piling Greggs’ sausage rolls. Based on his cooking, we all know Mike will be fine with is well stocked WW2 rations. Seb will be thinking long and hard about cutting down to five rounds of golf a week and Jane is already on hold to the news desk of Chorley FM calling in a breaking news story that there is a man walking around London in possession of a strong opinion ( if you don’t understand any this come and join us on X (formerly known as Twitter).
Let’s be honest, it won’t be just those loveable rogues choking on their soy lattes, green teas and poorly paid product transfers. The good and the great of this sector will no doubt already be typing out their responses:
“Advice gap!”
“The banks need us!”
“It’s cheaper for everyone!”
“We’re the fourth emergency service! “
“We deserve the money – we’re practically brain surgeons but without the exams!”
I am sure we can all think of many others.
I feel I am allowed to express my thoughts on the subject as I don’t have any strong industry position to protect.
I also see things from both sides and while most brokers treat the lenders respectfully, there are many that don’t. We seem to forget that the lenders are our clients as well (hint: the clue is in the word – intermediary). But the main reason I can speak my mind is because I am such an old dinosaur, I am one of the few people that can confidently state that absolutely NOTHING has moved forward in the industry for 25 years.
TECH LIMITATIONS
Please, let’s not pretend technology has arrived with any degree of credibility. We have CRM systems that are more Emperor’s new clothes than they are Louis Vuitton and, in the interests of balance, some lender systems have more bandages holding them together than Pudsey Bear.
No, aside from a few new banks (mainly specialist) we are doing the job and getting paid the same way as we did in 1998. The only major difference is social media but all that does is simply highlight to each other how annoying we all are.
I was reminded of how much of an outlier I am on this topic after seeing this recent Bank of England report. You cannot read this report nor the journalism that surrounded it and come to any other conclusion that, despite what YOU may think, there are many people out there that view mortgage brokers as commission hungry salespeople.
Yes we all know that two-year fixed rates were likely better for many consumers over the past 10 years. That is not the smoking gun of the report. What should be concerning for all of us is the perception of our MOTIVATION as to why we recommend shorter term fixed rates.
The conclusion in much of the journalism I have read suggests that it is likely to be for personal financial gain.
It is worrying enough that our own central bank might be thinking along these lines but of more concern is that many consumers may also believe this to be the case as well.
So after reaching dominance in a sector following the biggest bull run of our existence, the current conclusion by many is this: “Bank experts believe this strategy has been employed so that brokers can profit more substantially from repeated income generated through fees”.
Well done all of us.
Not quite New Year, new me, more New Year, more proc.
When it comes to professionalism our job title should slip as easily off the tongue as it does for solicitor, accountant and IFA.
Personally I can’t help but feel we still have some way to go.
