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Brokers must communicate the value of advice – Metro Bank founder

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  • 11/10/2013
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Brokers must communicate the value of advice – Metro Bank founder
British consumers need to recognise there is 'no such thing as a free lunch' when it comes to mortgage advice, the founder of Metro Bank has said.

Anthony Thompson, who now chairs the National Skills Academy for Financial Services, told Mortgage Solutions: “The whole UK intermediated space has suffered in the last few years. The biggest challenge is having customers who actually appreciate the value of advice.

“It should be paid for and it should be quite transparent, whether it is an upfront fee or otherwise. Customers should recognise the value of advice. There is no such thing as a free lunch.”

Speaking at the Association of Short Term Lenders’ conference, Thompson said when he founded Metro Bank in 2010, there had been no advertising budget. As a result, the challenger bank had followed a strategy of customer advocacy.

He said: “It is possible to create fans by giving a great customer experience.”

Thompson also criticised financial services firms’ drive for profits above customer experience: “Profit is the by-product of giving someone a better product experience. It is not the reason for being in business. The great malaise of UK plc and banks in particular is that they have forgotten this.”

Established lenders also needed to stop focusing on price and consider the value to the customer, he added.

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