Yellow Brick Road chief executive Matt Lawler has taken the discussion of industry convergence to the next level, arguing financial planning and mortgage broking are inextricably linked.
Speaking to ifa sister publication Mortgage Business, Mr Lawler said the movement of some mortgage brokers to become qualified financial advisers is a welcome development for the industry, adding that the two are becoming more entwined.
“It is absolutely viable for mortgage brokers to add planning to their suite of services,” Mr Lawler said.
“I think mortgage broking is actually a sub-segment of financial planning. If you look at financial planning from the customer’s eyes, not from a product perspective, which is what a mortgage is, clients actually need advice at all age groups.”
According to Mr Lawler, clients who seek out a broker for a mortgage also need to consider insurance and further investment options as they begin to accumulate more superannuation.
Brokers who offer additional products and services as financial planners can meet those needs, he said, adding that clients are not inclined to visit a number of specialists for different types of advice.
“They want to deal with one, and they want that person to know their situation and to take care of things for them right across the board,” Mr Lawler said.
“That is why I would say it is viable for brokers to become planners, because a lot of that demand is coming from the clients that we are dealing with.”
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