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ANZ’s move puts mortgage advisors on notice

Press Release – Finax

Auckland, New Zealand – 9 August 2018 – Finax Mortgage & Insurance Advisory is applauding ANZs latest move to remove sales targets for bank staff and cautions that this move effectively puts the mortgage industry ‘on notice’.For immediate release

ANZ’s move puts mortgage advisors on notice

Auckland, New Zealand – 9 August 2018 – Finax Mortgage & Insurance Advisory is applauding ANZ’s latest move to remove sales targets for bank staff and cautions that this move effectively puts the mortgage industry ‘on notice’.

“The latest move by the ANZ is a signal to all of us operating in the financial advisory space that the ground is shifting under our very own feet,” says Finax Director, Lucia Xiao. “Financial product consumers are becoming savvier and information thirsty. We are seeing the old sales techniques deployed by traditional business models no longer giving mortgage brokers the results they once did.” Ms Xiao notes that her mortgage clients are becoming more driven by rational thinking rather than an emotional response to the cheap thrills of low rates and promises of cash-backs.

Regardless of this shift, the mortgage industry itself is still rife with outdated training for up-and-coming brokers. New brokers without a client base often get their start into the industry by cold-calling customers every day. They secure appointments with promises of interest rate savings on existing loans and for a while, act mostly for re-financing clients until they get name-recognition in the industry. “And what choice do they have?” asks Ms Xiao “Many of these roles are commission-based. Most people have bills to pay and families to feed. If they don’t make a sale that week then that puts them under tremendous pressure.”

Ms Xiao believes an industry overhaul is long overdue. “I am seeing far too many young and impressionable brokers being trained to tele-sell when they should be learning how to give good financial advice. Not only is this incredibly dispiriting and a waste of young talent, but it is also incongruous with the current consumer culture,” says Ms Xiao.

Customers have come to expect more from their broker. “For most people, a mortgage is one of the biggest financial decision we are going to make in our lives. It stands to reason that we would want to deal with an advisor who understands the far-reaching consequences of the product we choose and give us the advice we need to reach our financial goals. You would expect your broker to demonstrate more financial competence than simply sales,” says Ms Xiao. “Anyone can sell a cheap home loan, but being able to give customers good financial advice takes leadership and moral courage by us industry veterans to train newcomers properly then simply leaving them to fend for themselves.”

Ms Xiao is hopeful that the mortgage industry would take a leaf out of ANZ’s book and shift its focus from sales to financial advisory service. “Last time I checked, we call ourselves ‘financial advisors’. I, for one, would like to see us do more advising than sales.”

Finax Mortgage And Insurance Advisory is a leading Auckland financial service provider that was founded by Ms Lucia Xiao.

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