Mortgage News
Finding new clients a major concern for brokers
Searching for new clients and replacing lost income are the two major concerns facing brokers in the current market, according to a poll carried out at the Royal Bank of Scotland Intermediary Partners (RBS IP) Forum in Sunderland last week.
The survey revealed that finding new clients was the top issue for brokers, with 29% admitting it was a major concern. Replacing lost income was the second highest issue, with 26% of respondents highlighting it as an area of concern.
Despite the ongoing debate over the potential ramifications of the Retail Distribution Review (RDR), only 13% said that dealing with further regulation was a worry. Around 18% said their main concern was managing a move to a fee based model. Learning about new markets and managing technology proved minor concerns, with just 1% of brokers singling out either issue.
Commenting on the results, Martin Reynolds, development director at PMS, said that brokers should concentrate on retaining and servicing their existing clients rather than finding new clients.
He explained: “It would be better for brokers to maximise the potential from their existing database rather than finding new clients through referrals and through selling protection. They need to understand and fulfill the needs of all their clients before looking elsewhere.”
Grenville Turner, group chief executive at Countrywide, said existing clients were more likely to provide sources of income than new clients.
He commented: “I believe far too much time and effort is placed on trying to search for new customers who tend to be less loyal. More business is done through clients who have transacted with the broker previously. It is always surprising how little support and retention is concentrated on servicing existing clients.”
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