As you grow your finance brokerage, you will encounter many hurdles along the way. Competition is often fierce, gaining a client base is sometimes a struggle, and lenders may not want to deal with you in the beginning, considering you too small.
Grow Your Finance Brokerage
You can grow your finance brokerage with the right strategies. Here are five ways to grow your finance brokerage in 2022 and beyond.
1. Using Aggregation
This should be your number one strategy – hence why we’ve put it at the top here. Exploring business finance options through the use of a lender aggregator can help set you up with a wide panel of commercial and consumer lenders while taking care of financial compliance issues at the same time. Instead of establishing your own panel, which can take a lot of time and money, aggregators also offer professional development and compliance, lead generation tools, and specialised asset broker software. This is the first step towards growing and scaling your finance brokerage.
2. Online Self-Service
Brokers have websites – and the website has to sell what you’re offering but also provide the tools for customers to inquire and apply for their finance products. Newer generations – and much of the older generations – are using their phones to do their banking and personal finances. Make sure your website is optimised for mobile and all of the compliance and regulatory requirements can be fulfilled via your online portal.
3. Customer Outreach
The tried and true are tried and true for a reason, reaching out to customers using a combination of education, awareness, and assistance. This could take the form of digital marketing – offering advice, tips, and financial analysis as blogs or videos that people can use in their everyday lives. Becoming a trusted pillar of finance and the community can reap rewards later in the form of customer loyalty. Getting testimonials and positive reviews online is worth their weight in gold.
4. Offer Value Added Products
Many brokerages offer value added products such as insurance or even car buying (if you’re selling personal loans) to make their service more attractive. Imagine telling a broker your desired model of car, buying it with a fleet discount and approving finance all on the spot – then having the car delivered to your door! You can also offer other ancillary products such as utilities comparison, so clients can have cheaper gas and electricity when they move into their new home. To grow your finance brokerage, make sure it has something the competition doesn’t. This will make you unique and stand out.
5. Using Business Finance
Yes – we all need to get finance ourselves to get up and running – and it should be no stranger to you as a broker. Invoice financing, lines of credit, and short-term business loans can help you navigate stormy waters as you get set up with aggregation, marketing, and overheads. This may mean buying new equipment, CRMs, LOSs, or other fintech to make your life easier and improve your bottom line.