“It’s beginning to look a lot like Christmas.” Actually, it began to look like Christmas around the middle of November this year so with just a few days to go, it probably couldn’t look any more like Christmas. I’m half expecting the Boxing Day Sales to begin today, in fact with the introduction of ‘Black Friday’ this year I think they actually started a month ago.
Do I sound weary? I don’t mean to but given I’m the person who turned up to our recent Christmas jumper day wearing something which said ‘Bah Humbug’ you’ll probably have a good understanding of which side of the fence I fall on. Actually, this is a great time of year and I am, like you no doubt, looking forward to the Christmas and New Year break in order to spend some time with friends and family, after what has been an incredibly busy year.
Most people I have met in the industry over the past few months in particular, have met my “How are you?” with the answer of “busy”, and unless all of them are lying then I think we can agree it’s been a good year for the mortgage market. Especially if you are an intermediary. After what preceded 2013/14 it is good to say that and to see business activity increasing throughout the year and our advisers developing their propositions and covering off more product areas, is also very pleasing.
I won’t bore you with the numbers but we have see improvement across the board, whether it be the number of AR firms choosing to use us or the level of mortgage, protection, GI business they have completed during the last 12 months. All have gone up and this is not just down to an improvement in market conditions but it is testament to the staff we have in place here and the work of all our advisers. It is one thing to have a market opportunity available, it is certainly another to be able to grasp it.
The positive news for all stakeholders is that the opportunity available for advisers continues to strengthen as both market conditions and regulatory changes shape the playing field much more in our favour. We were quite certain that the MMR would ultimately favour intermediary distribution and this shift is being played out right now as lenders accept the greater costs that now come with a direct to consumer approach, coupled with the fact that as the market gains new lenders and greater numbers of products, the need for advice grows with it.
Now that we are seeing a number of lenders looking more at underserved niche areas or realising that, for example, many more people are now self-employed or contract workers, we are seeing these product areas open up. Where once borrowers like these had few options available to them, now they can access a growing market and the simple fact is the best way to do this is through an adviser. The profession’s worth is growing and the demand for our services continues to rise – it is up to us all to make sure we are in shop window and that our services are readily available to all that require them.
Therefore, during 2015 it would make good business sense for the advisory community as a whole, and individual advisers/firms in particular, to focus on the way we market our services to customers. The market continues to shift in our favour but we still need to use marketing techniques and communications not just to secure clients, but to hold onto them, and to gain those potentially lucrative leads and referrals.
Understanding your client database and developing the technology you currently use to target all potential consumer groups will be vital especially in a sector which could well see an influx of competition in the coming period. I fully expect new adviser start-ups and a greater number of new and returning advisers to set their sights on the mortgage and protection market this year and beyond. Just as new lenders are making their moves, so will new advisers become more prevalent and therefore it will be important to set out your stall and make yourself as visible as possible. You have a market advantage already – now is the time to make the most of it.
And on that note, may I wish you a Merry Christmas and here’s to a very prosperous New Year and beyond. Have a great break and we will catch up again in 2015.
Richard Adams is managing director of Stonebridge Group