At Loan Avenue we believe recent rate increases by most banks represents a significant opportunity for brokers to try a new approach and grow their business.

The unbearable sameness of major lenders reminds us of one thing: people don’t want more choice, they just want better service.

It’s increasingly difficult for borrowers to navigate the home loan maze.  On the one hand, banks have made a number of very public changes, signalling a potential decrease in lending appetite.  On the other hand, there is a myriad of special rates and deals on offer.

The market is confusing and largely uninspiring as savvy borrowers struggle to understand the alternative financial solutions available, to improve their position.

Enter you, the broker.

The current situation highlights the important role of brokers to understand people’s individual circumstances, provide impartial financial advice and cut through all the hype.

So how can individual brokers gain a share-of-voice in a highly-saturated, cluttered lending market?

It’s about searching for and adopting a new approach.  Easier said than done, so here are a couple of ideas to help rethink your approach and try something different.

Tip 1

Design the ideal broker that would put you out of business.  What would they do and how would they do it?  How would they grow their business and obtain new customers?  Write a list and think about the business model your perfect competitor would use.  Next step is to simply start implementing these things into your own business – before someone else does!

Tip 2

Thinking about how the lending industry currently competes for business, answer these four questions**:

• Which factors has the lending industry always competed on that should be eliminated?

• Stop doing these.

• Which competitive factors should be reduced well below the current industry focus?

• Reduce your time and effort in these areas.

• Which market factors should be raised well above the current industry focus?

• Start improving your time and effort in these areas.

• Which market factors should be created that the industry has never offered to borrowers?

• Start implementing these new ideas into your business.

As a broker, your only competition is the old way of doing things.  It’s important to challenge old assumptions and explore new ideas.

As always, Loan Avenue is here to support you through that journey.  You are welcome to discuss the challenge of growing your business with us at any time.

Please contact us if you would like to talk about the tips outlined above or any new strategies for marketing and selling your business.

We look forward to hearing from you.

**Adapted from Blue Ocean Strategy: Four-Actions Framework