Technology. Why software is more important than ever in driving a broker s business. inside. Special Report

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1 partnered by Technology Special Report Why software is more important than ever in driving a broker s business inside Better customer service Business management Compliance and regulation Data collection

2 technology report / introduction Quicker and easier Having the right software platform is now more important than ever, so what should your broker software package be doing for you? Story/ Vivienne Kelly The software offered by an aggregator is often cited as the primary reason for a broker to choose or leave the aggregator. An online straw poll conducted by The Adviser earlier this year found that 32.1 per cent of respondents would consider switching aggregators for better technology. In this report, The Adviser explores what broker software can do to improve customer service, business management, marketing, compliance and data collection. Bells and whistles aside useful though they may be broker software remains simply a means to an end, and it is important to keep in perspective what it can and can t do for a business. Glenn Lees, director of Connective, says while software has different functions for different brokers, its core functionality is the same. The thing that underpins it all is that good software can make brokers more effective and more efficient, Mr Lees says. With good software, brokers will have happier customers. They ll make more sales and they ll make more money it s that simple. It s an enabling capability for their business; it s not a reason to be in business. Software s main purpose is to make [brokers ] businesses quicker and easier. Micro and Macro levels To be effective, mortgage broking software should provide support at two levels: the micro and the macro. 02

3 partnered by With good software, brokers will have happier customers. They ll make more sales and they ll make more money it s that simple The micro level is associated with client service and the completion of loan applications. If the broker s software platform is complicating the loan process, Mr Lees explains, then aggregators are missing the point. Broker software should be designed to help you help your client, the customer. No matter the size of your business, you ve always got to do the same thing for the customer, says Mr Lees. With shrinking profit margins and pressure on brokers to diversify increasing, having an efficient software platform can help even the smallest brokerage provide industry-leading customer service. Meanwhile, software support at the macro level is designed to help brokers with the running of the business. In this area, different sized brokerages will have different needs. We have some large franchise networks that use our software and it allows them to manage it at a branch level, or a loan writer level, or across the board, says Mr Lees. Regardless of a brokerage s size, however, its software platform needs to provide support in those key areas of customer service, effective business management, marketing, compliance with regulations and data management. Sole trader Bradley Field, who runs Property Finance Professionals in Sydney, switched to Connective s Mercury software platform due largely to frustrations with previous software packages. Mr Field believes the Connective platform is industry leading: Everything s just there and very integrated, he says. It saves a lot of hassle. There s a massive time saving [available] by having the right software. We re all stuck time-wise, so if there s something that saves you time and gets your business working for you, then you should use it. Otto Dargan, director of Home Loan Experts, agrees that time is crucial when choosing software because you need to focus on what s important, the customer. Mr Dargan has 18 staff, six of whom are loan writers, and says Mercury has made his business operations more efficient. It has simplified the administration side of our operation, which leaves us more time to focus on writing loans and seeing customers, he says. Attitudes And AggregAtors While broker software is, obviously, tailored to meet the needs of the mortgage broker, Mr Lees believes a software platform is also reflective of an aggregator s wider operations and attitudes. If an aggregator s software platform and performance are not up to scratch, however, the broker shouldn t feel trapped. We always want the risk of non-performance to be ours, Mr Lees says, so if we don t deliver, then we don t have a business. With the onus on the aggregator to perform, software is also reflective of how an aggregator views its relationship with its brokers, according to Mr Lees. Software, in and of itself, is nothing special, he says, but the software that an aggregator has is reflective of their capabilities and philosophy in general. It s just another element of how an aggregator approaches business. If they have a fairly restrictive and controlling approach, then you ll see that in their software. If they re not very innovative or not prepared to invest, it will also be reflected in their software. According to Mr Lees, Connective doesn t view aggregation and software as separate entities. It s all part and parcel of the offering and of the attitude of the aggregator, he says, so for us, Mercury is very much a manifestation of our business personality and I think that s true across the board. Looking to the future Mr Lees believes the future of broker software will be all about the customer. Thus far, technology has focused too much on the broker and aggregator, often forgetting that the most important player in the process is the borrower taking out the loan. In 10 years time, it will be a very different market, he says. We fully expect to be leading the charge in the blurring of the lines between broker software, customer interaction and the broker s public interface their website. Mr Field, who has been with Connective for two and a half years, agrees that broker software could benefit the customer even more in the future. Ideally, he would like borrowers to be able to sign forms electronically, such as on an ipad, but concedes the banks might not be ready just yet. Mercury s really got everything else, he says. For me, I just have everything that I could possibly hope for for my business. That s one of the great advantages of Connective and Mercury. 03

4 technology report / Customer service Stronger relationships through technology Story/ Vivienne Kelly Broker software isn t just about the broker and their business, it should also facilitate a faster, smoother and overall better customer experience Broker software should be able to enhance customer service in two ways: by saving the broker time and by improving the quality of communications. By simplifying brokers business operations, the right technology can free up their time to focus on borrowers. With less time spent on business management and operations, brokers can meet with clients, focus on finding the right lending solution and ensure the loan process goes through smoothly. A good software platform should also provide tools for the broker to manage their customer relationships and maintain regular communication. Glenn Lees, Connective s director believes the company s Mercury software platform is targeted to broker s needs, which ultimately benefits the borrower. It s really focused at the broker and making the broker responsive to the customer s needs, he says. It lets the broker control the process in an efficient way. So a lot of it is about efficiency and engendering confidence in your customers by having everything at your fingertips. With efficiency comes profitability, and Mr Lees believes good software should not only ensure borrowers get the right loan but also help brokers achieve their business goals. Mercury makes a broker s life really efficient and their business more profitable because they re not missing out on sales opportunities or losing clients through poor communication, he says. That s a big attraction for brokers. It works well. time saver Sole trader Bradley Field, who runs Property Finance Professionals, says using Connective s Mercury platform saves him considerable time. If you re saving time, you re more likely to be able to service your clients better, he says. With more time to prepare, research and present, brokers are able to offer a better service and potentially a better result. The good thing for the client is that I can put together a lot of product research and display the client s exact scenario. I think that empowers the clients to make more informed decisions on their part because they can easily see the comparisons side-by-side. 04

5 partnered by My clients can then make a better choice on which way they want to go. Daniel Di Conza, chief executive officer of Acceptance Finance, says that time and efficiency are key issues for the broking industry at the moment. Brokers need to become more efficient, he says. With shrinking margins, efficiency is more important than ever. Mr Di Conza, who has been with Connective for two years, believes technology could be the key that opens the door to greater efficiency. Everything that the new generation software is doing is making our job easier and faster, says Peter Nott, principal of SeaChange Financial. It means we can focus on the more important aspects of the deal and finding the right solution for the client. CommuniCation tools Connective s software offers Mr Nott communication tools that ensure the borrower is contacted regularly, he explains, adding that communications are triggered as a deal passes through its various stages. We re informing borrowers all the time, he says. We ve found over the years that one of the biggest things that borrowers worry about is when they don t hear anything. We re able to be constantly in touch with our clients, without being in their faces. It puts their mind at rest, which is really good for client management... they re fully aware of what s going on. Mr Field adds that Connective s Mercury software enables him to communicate with borrowers in ways that he had not previously considered. The newsletter system, My Marketing via Mercury, is personally branded and handles subscription changes automatically. The text message service is also something Mr Field wouldn t have considered without the support of the software. The system automatically sends clients an SMS on their birthday, he says. I would never have done that manually on a mobile phone. I can also send text messages to clients through the CRM system and it all gets tracked into the software. Meanwhile, Mercury s marketing capabilities have not only made Otto Dargan s Home Loan Experts more efficient, but also more profitable. While the software has helped with our efficiency, the biggest financial benefit has come from the marketing features, he says. We ve seen an increase in referrals and a drop in the run-off rate of our book due to increased communication with our clients. Head in the Cloud Mercury is a cloud-based platform, which helps brokers respond to borrowers needs anytime and anywhere, according to Mr Lees. Education & training for success Education & training for success Connective Learning provides the tools and resources to grow your business and maximise your broking effectiveness. Covering everything from compliance and lender updates, through to workshop debates on key industry issues, we have worked hard to Connective Learning provides the tools and resources to grow your business and develop a PD Calendar that caters to the varying needs of brokers today. maximise your broking effectiveness. Covering everything from compliance and lender Attendance award winning Connective Learningissues, Programme is included updates, throughtotoour workshop debates on key industry we have workedfree hard to in our flat fee membership. develop a PD Calendar that caters to the varying needs of brokers today. Find out more at or call Attendance to our award winning Connective Learning Programme is included FREE in our flat fee membership. ACN Australian Credit Licence Number Find out more at or call If a borrower or prospective client calls a broker on the road, they can answer most questions immediately. The days when you responded with, I ll just need to check on that and come back to you are over, he says. All of these things make it easier for the customer. They can get the information and they can feel comfortable that the person they re dealing with knows what they re talking about. Accessibility has been improved still further with Connective s development of ipad, iphone and Android applications. Far from alienating older brokers or borrowers who struggle with technology, Mr Lees says these technological developments have enhanced the broker/ borrower relationship. Uptake has been really strong, he says. It s been really gratifying how much people have used it and how much they ve enjoyed it and found it useful in their businesses. I think the thing with this type of technology is that it actually breaks things down into more simple chunks. So [the apps] are actually a lot more approachable, for those who are uncomfortable with technology, than a complicated desktop software system.

6 technology report / business management Growing your Business The right software can help brokerages of any size work more efficiently, control their finances and grow their businesses Story/ Vivienne Kelly As well as helping you to service your clients, broker software needs to help you manage your business. Having everything in one place not only makes it easier to run your operations day-to-day, it will also help you to grow your business. Effective software should enable you to manage more tasks in-house and it should be a flexible tool, covering all areas of business management. Daniel Di Conza, chief executive officer of Acceptance Finance, says that since he began using Connective s Mercury software platform he has been able to fine-tune the company s management across all business units. From a management point of view, we re able to manage the individual users and the commission splits, Mr Di Conza says. We ve brought the management of our referral partners and the individual brokers in-house, which has been a massive saving of time. Sole trader Bradley Field, a broker and the owner of Property Finance Professionals, believes the Mercury software platform is well integrated, allowing him to save time and worry. While some aggregators software platforms seem to be constantly in development or never quite up to scratch, Mr Field says, Connective s is always up and running. Business management tools Glenn Lees, principal of Connective, says that to be effective, broker software needs to be a complete business management tool. According to Mr Lees, no specific feature or aspect of the Mercury platform has been identified as the most popular with Connective s brokers since every broker gets out of it the thing that s most important to them. For some, it s the ability to do detailed product comparisons, he says. For those who are big on marketing, there are some really great tools in there too. broker software should be a complete business management tool Connective s software offers brokers financial control, a management dashboard, comprehensive reporting and marketing and cross-selling tools, Mr Lees says. Mr Field particularly appreciates the software s ability to handle commissions. I can just go in there and instantly see what my variances are on trail from one month to another and it highlights any differences, he says. For Mr Field, knowing when payments are coming in and not having to chase them makes operating his business that much smoother. 06

7 partnered by I know what commission is going to be paid in the upcoming month, he says. That was always a problem before, with the other software platforms that I ve worked with the commission was very difficult to work out whereas with Mercury it s put forward simply and you get notifications when commissions come in. Otto Dargan, director of Home Loan Experts, says brokers and managers alike benefit from Connective s smooth handling of commission payments. We re big fans of the trail variations function which lets us know which loans have had a large lump sum repayment or may have been discharged, he says. It creates opportunities for us to get more from our loan book. The aggregator s ability to handle commissions smoothly seems to be one of Connective s main points of difference, with many brokers commenting that using Mercury has reduced their stress levels. The software has searchable commission statements, commission variation and enquiry tools and cash flow reporting. In addition, Mercury can predict cash flow via settlement reports and offers brokers a sales performance analysis. Peter Nott, principal of SeaChange Financial, says Connective s business management tools, as well as the aggregator s handling of commissions and its attitude to loan book ownership, are just some of the reasons why he remains with Connective. The shackles that we have to Connective are extremely loose, he says. We stay there because we like them, because we want to stay, rather than because it would be problematic to get away from the relationship. Flexibility Mr Lees believes Connective s attitude and flexibility is another key point of difference and that this is reflected in its software. Mercury helps brokers do those things that they absolutely have to do, he says. Whether it s a calculation for a funding position, or serviceability, or keeping track of which loans are settling this month, or finding the best loan for a customer or meeting compliance requirements. It s one place where you can get all of those reasonably technical things done very, very quickly. Mr Lees recognises, however, that even though brokers all have certain core tasks they need to take care of, each operates in a different way particularly when it comes to business management. [The Mercury software platform] lets them work the way they want to work, he says. It s very, very flexible, so it allows brokers to address their requirements and in two minutes they can be doing something completely different. Flexibility, he believes, is what makes Connective s software suitable for different sized brokerages and able to be effective across the whole spectrum of the industry. The thing that underpins Mercury is flexibility in that it works the way you want it to work, he says. It manifests itself in different ways for different people. Training and education While a broker may not use every one of the features that a software platform offers, it s still important that they know how they work, according to Mr Lees. If brokers are not using their software as effectively as they might, they may miss out on business opportunities. Connective provides a range of tools to ensure that software is a business aid rather than a burden, he says. We do a number of things, Mr Lees explains. We do induction training when brokers first join, and we have our broker support managers on the ground, who are able to come and assist where required. We run webinars every week on different features of the software. Those webinars are recorded and available for viewing later. We also have a help desk for those things you just can t work out or those things that may not be working properly. 07

8 technology report / ComplianCe and Regulation Reducing the burden Brokers may be surprised to learn that having the right software platform can significantly ease the task of NCCP compliance Story/ Vivienne Kelly New brokers will face it as soon as they enter the industry; seasoned veterans, after years of experience without it, are now having to get used to it. It, in this case, is the obligation to comply with regulations under NCCP. Like it or not, there s no getting around compliance and so it s important that every aspect of a broker s business operations and services is designed with compliance in mind. That includes having adaptive broker software as a key partner in the broker s compliance strategy. So, how exactly can your software platform help you comply with the applicable regulations as well as remain updated on new ones? According to Connective principal Glenn Lees, software can ease brokers compliance burden simply by capturing and documenting what they are already doing. Compliance is all about demonstrating that you ve done the right thing in the end, he says. In my experience, the vast majority of brokers do the right thing, and they do it in a compliant way. The trick is to make sure they re documenting and capturing it. [Connective s platform] Mercury helps them do that. How software can Help Fortunately, automated forms, data capture and compliance checks have now become integral aspects of broker software packages they are both expected and required. Despite the complexities associated with NCCP, Connective believes successful compliance should be part of a simple process. The company makes reference to the bouncing ball when talking about software and compliance. In other words, it s just about taking it one step at a time as the loan process unfolds. This approach, Mr Lees believes, is industry leading. Everyone says they re industry leading, don t they? But we really think 08

9 partnered by Mercury is. We try and promote compliance as the natural outcome of the process. According to Mr Lees, adopting this approach consolidates the loan process and compliance in the minds of brokers. Rather than having this overlay of I must do the loan and I must do compliance, we ve made compliance a natural part of the process. Brokers who use Mercury get information from customers in the usual course of writing a loan and that information is then captured for compliance purposes. So you do your fact find, and the results of that fact find automatically get included in the compliance documentation, says Mr Lees. Something new Peter Nott, principal of SeaChange Financial, has been in the industry since Mr Nott hasn t always had to deal with NCCP compliance and is therefore well placed to assess the compliance aspects of Connective s Mercury software platform. As the industry changes, software needs to change with it almost instantaneously to ensure brokers don t struggle with new challenges. Mr Nott says Mercury s compliance functions help him provide a better service to his clients, while ensuring the business operates smoothly and, of course, remains compliant. With boilerplate templates and using a mail-merge type process, we produce all the required compliance documents and provide them to most clients electronically, he says. We use the customised questionnaires to ensure we have covered responsible lending in our fact-find, and have a date/time stamped record of the fact-find activity in case of an audit. These tools have enabled Mr Nott and SeaChange Financial to adapt, with little disruption to their usual business practices. Changes and amendments to NCCP will need to be reflected in broker software, while an aggregator s ability to adapt to new requirements will determine which groups are best able to service the brokers of tomorrow. Keeping it Simple Licensing and lender requirements are two key forces that are shaping and changing the broking industry at the moment, according to Mr Lees. Effectively, brokers have had to adapt or leave the profession. Connective, however, wants compliance to be a simple process, where good brokers using good software don t have to see compliance as a significant burden. Connective, says Mr Lees, is constantly working to ensure the aggregator s software gives brokers the best opportunity to comply with their obligations, whether they be regulatory such as NCCP or rules imposed by lenders. The Mercury software has built-in one-click compliance, automatically generated documentation and note records that provide a convenient audit trail. Company policies and procedures can also be stored for review. Bradley Field, of Property Finance Professionals, says the platform saves him considerable amounts of time: Having all the NCCP documents available saves me time and means I don t have to go to different sources to create them, Mr Field says. Compliance, however, is not just about the broker, aggregator and lender; it s also about the borrower. Connective, according to Mr Lees, integrates the four parties. Everyone talks about the importance of fact-finds, he says. We ve had an industry-leading online fact-find for two years now. Brokers do their fact-find, or the customer fills it out online, and the results are then linked to compliance. There are a lot of little things like that that the brokers can do, and in the end [Mercury] generates the documents in just a couple of mouse clicks. Confidence in Compliance Our Mercury software assists you in complying with your NCCP obligations, via automatic document creation and our One Click Compliance all with a full audit trail. Features include: Compliant documentation automatically produced Audit trail provided by note records In Built One Click Compliance Visit info.connective.com.au/mercurydemo to arrange a no obligation live demonstration of Mercury today. ACN Australian Credit Licence Number

10 Create more leads. Write more loans. It really is that simple with Connective s My Marketing. Recognised as finalists in the Australian Broking Awards Best Marketing 2012, Connective My Marketing gives you access to marketing materials and automated campaigns. All material is customised to your brand and business. Text messages, RBA announcements, emags, booklets and templates. With three plans to choose from - You select. We execute. Simple! Complete flexibility means you can turn your marketing up and down, and choose which clients receive which communications from you. Most importantly for Connective brokers, My Marketing is managed in your Mercury software system. This means that all communication with your clients and prospects is held in the one secure platform, allowing complete data integrity, visibility and control. Plus, we provide total accountability. Each contact with your client is recorded directly into your Mercury software, so you can keep an eye on how your marketing is tracking! To drive more leads to your business and learn more about Connective My Marketing, please media@connective.com.au or call ACN Australian Credit Licence Number

11 technology RepoRt / data collection partnered by Information and Story/ Vivienne Kelly interactions Access to data is essential for brokers, so how can the right software help them control one of their biggest business assets? For any broker, being able to access and interact with data easily is crucial to their business operations. Data is critically important because if you have a business of any size, then the data is your key intellectual property, says Glenn Lees, director at Connective. It s knowing who your customers are; it s knowing what they ve done in the past; and knowing what they will do in the future, so that you can be ready for those needs. Relationship management Daniel Di Conza, chief executive officer of Acceptance Finance, has been using Connective s Mercury software platform for two years and says the package s CRM system has greatly benefited his advisers. Acceptance Finance has a team of 25, including 11 mortgage brokers, three lease brokers and three financial planners. It allows them to all share the one database, without having to enter clients in multiple times, Mr Di Conza says. We ve got some clients with multiple products, so it s improved the way our different business units interact with each other. The ease of data access that Mercury provides has increased the company s efficiency and profitability. We ve seen an increase in cross selling, says Mr Di Conza. It simplifies the process of sharing information. Peter Nott, principal of SeaChange Financial, says easy access to data also enhances client communications. I find it very, very easy to navigate through the software, Mr Nott says. It forms an incredibly comprehensive record of the client interaction that we ve had and that means we know exactly where each of the client files is at. This enables SeaChange Financial s two loan writers to interact with clients at key moments throughout the loan process without any difficulties. As our business has changed to mostly repeat and referral business, it is crucial that we have the sort of facilities that we have, says Mr Nott. We know where each individual client comes from and this enables us, for example, to provide incentive gifts to referrers. access and ownership Data and the business brokers can generate from using that data effectively are the building blocks of an effective brokerage. While the question of who owns the data is sometimes a contentious one, Mr Lees says that one of Connective s main points of difference when compared to its competitors is the company s attitude to data. Our philosophy has always been that it s not our data, it s the broker s data, he says. Our philosophy is that it belongs to you. To illustrate this point, he explains that there are functions in the administrative section of Mercury through which brokers can download and export all of their data, without Connective being involved. While some aggregators use data as a retention tool, he adds, Connective would rather hang onto members because they want to be there. Our brokers can have the confidence that if they use our software, they can get the data out if, heaven forbid, they decide they don t like us anymore, Mr Lees says. Our attitude has actually brought a lot of brokers across to Connective, he says. The way we ve structured our data is all about attitude. We have to make our customers happy because if we don t, we don t have any. Compared to others who say, well, if you leave, you lose your trail or you won t get your customer data, we don t have any of those things interrupting the way we think. 11

12 You told us what you wanted & we delivered. Our offer is simple. We will provide you with access to the lenders, our software, compliance support and attendance at all of our training and networking events, all for a flat monthly fee. Ask yourself, does your current aggregator offer you: 100% upfront commission and 100% trail for a monthly fee. A non exclusive agreement where you can keep your current accreditations or establish new ones outside of our 50 plus lenders. No handcuffs. If you re not happy, you are free to leave without penalty. Plus, access to our award winning Mercury software and PD Programme is included FREE in your membership. With Connective, you can choose to re-invest your savings in your business, or send them straight to your bottom line. Calculate the Savings What s the difference between Connective & your current aggregator? Visit info.connective.com.au/calc to see for yourself just how much better off you will be with Connective. To learn more about the industry s fairest agreement and fee structure, please call or media@connective.com.au. ACN Australian Credit Licence Number