Shifting market landscapes and emerging technologies are placing an increased onus on the benefits of offering broader ranges of financial services.
The downturn in previously secure markets, such as buy to let or first-time residential property sales, as well as the perceived threat of robo-advice and other cyber-innovations, are cited by many brokers as evidence of a need to expand their products and services.
Indeed, industry experts have been recommending diversification as a means of ‘future proofing’ businesses.
Evolving expectations of the remit of customer service and the increasingly widespread belief that financial needs should be catered under one roof, offer a compelling argument for expanding horizons and product ranges – especially if they relate to core businesses.
By developing knowledge and awareness of specialist products that fall outside of traditional areas of business, such as second charge mortgages and bridging loans, brokers can make better informed decisions for clients and look to build longer term relations with their custom bases.
Moreover, repeat custom that is predicated on multiple services and strong foundations of trust can yield wider sources of revenue and offer better chances of growth.
Many brokers have become accustomed to selling insurance products alongside mortgages so a similar shift towards specialist products that reflect changing needs and circumstances shouldn’t be too much of a leap.
Just look at the surge in second charge mortgages over 2017 and the similar growth in bridging loan business, with 65% of brokers reporting increases in loan volumes for Q3 2017.
And, if this seems like a step too far at the present time, then brokers can consider partnering with businesses that do offer specialist products.
Either way, with uncertain political and economic factors presenting their own challenges, more and more brokers are beginning to realise that they need to be jack of all trades, master of some to survive.