As the financial services industry continues to evolve and adapt to changing consumer behavior, technology, and increased scrutiny, financial advisory practices must also adapt to stay competitive.

One way to do this is by integrating lending solutions into your practice, but finding the right referral partner in the form of a mortgage broker can be challenging. In this article, we will delve into the benefits of working with a mortgage broker, how to find the right one for your practice, and tips for maximizing the potential of this partnership.

Why Integrate Lending Solutions into Your Practice?

The Macquarie 2015-2016 Accounting and Financial Services Benchmarking Report found that the most profitable financial advisory firms "have articulated client value propositions that seek to drive revenue from adjacent services." In other words, these firms have found success by offering a wider range of services to their clients beyond just traditional financial advice. By doing so, they are able to create more value for their clients and increase revenue per client.

There are several reasons why financial advisory practices may want to consider integrating lending solutions into their service offerings:

Evolving to a whole-of-life proposition:

Many financial advisory practices are transitioning to a values-based, whole-of-life offering for their clients. This means taking a more holistic approach to financial planning that considers all aspects of a client's life, including lending needs.

Meeting client expectations:

Customers today expect their trusted advisers to provide a fully integrated view of their planning needs and offer all necessary services under one roof. By offering lending solutions, financial advisory practices can meet this expectation and provide a more comprehensive service to their clients.

Responding to the challenge of customer value creation:

Introducing adjacent services, such as lending, can help financial advisory practices deliver on both new and existing client needs, leading to increased revenue per client and advocacy.

Addressing cost pressures:

The cost of producing financial advice is under pressure from increased compliance, staffing, and operational costs. By integrating lending solutions into their practice, financial advisory firms can potentially grow their revenue per client and offset these costs.

Finding the right Mortgage Broker partner

Now that we've established the benefits of integrating lending solutions into your financial advisory practice, let's look at how to find the right mortgage broker partner. The key is to align yourself with a broker or broking firm that shares your values and takes the time to understand your personal and business objectives, your service offering, and the advice you provide to clients.

Here are some steps to follow when searching for a Mortgage Broker partner:

Determine your objectives:

What are you trying to fix, avoid, or achieve by working with a mortgage broker? Do you want to offer a residential and commercial lending solution? Do you want to make your clients "stickier" by offering a wider range of services? Your objectives will help determine the type of broker relationship you are looking for.

Assess the costs and benefits of different models:

There are several ways that financial advisory practices can work with mortgage brokers, including referral fees, commission-based models, and fee-for-service arrangements. Consider the pros and cons of each model to determine which one is the best fit for your practice.

Align with the right broker:

Once you have a clear understanding of your objectives and the different models available, it's time to start searching for the right mortgage broker partner. Look for a broker or broking firm that shares your values and takes the time to understand your practice and the advice you provide to clients. Ask about their value proposition and process for working with your practice.

Once a partnership is established, it's important to communicate with the mortgage broker regularly and track the results of the partnership to ensure it is meeting your practice's needs and objectives. By following these steps, financial advisory practices can maximize the growth potential of their partnership with a mortgage broker.

Who Are Willow Private Finance?

As a leading independent mortgage brokerage with a strong track record of assisting a diverse range of clients, Willow Private Finance is an excellent partner for IFA's looking to integrate lending solutions into their practice. With a focus on providing a dedicated and bespoke service, Willow Private Finance is committed to helping its clients achieve the best possible results and meeting their objectives. The company's extensive experience in all aspects of specialist lending and finance makes it well-equipped to handle the complexity of the mortgage funding process and navigate regulatory changes. By partnering with Willow Private Finance, IFA's can provide their clients with a comprehensive service that includes expert advice on lending solutions