We love to bring the human element to the financial process and introduce you to the brokers behind the platform, working hard to get you great rates.
We also want to introduce you to National Finance Brokers Day (NFBD), which was established in 2015, held on the 15 August, with the ambition to promote awareness so that you, as consumers, can have a clearer understanding of the benefits brokers offer.
We interview the founder of NFBD, Dino Pacella, and ask him a little about the industry and his aspirations around the day.
1. Tell us a little about your background?
With fifteen years experience in the finance industry I started my career at the Commonwealth Bank before expanding into senior leadership roles with Suncorp Bank, via the direct channel, as the Regional Support Leader and Area Manager Retail WA before moving into the third-party channel in 2012.
I have a deep passion for finance and technology including the interactive world of social media and provide assistance on how to create an online presence by creating a powerful & precise personal brand.
2. Why did you found NFBD?
When I commenced as a BDM in the broker channel I spent hours of research on both what brokers were bringing to the market and how consumers perceived this profession.
I wasn’t satisfied with the overall perception that the market had about finance brokers, quite frankly was skewed towards the negative end of the spectrum. As such I had an idea to help create an awareness day so consumers would understand the full services offered by these finance professionals.
As well has offering established NFBD (third Wednesday of August every year) the work continues throughout the year to help educate consumers on the advantages of using a finance broker, along with industry changes that alter these advantages.
3. How do you see the industry changing for brokers over the next few years?
I see advances in technology playing a huge role for everyone involved from brokers and lenders to consumers.
These advances will see quicker turnaround times, faster decisions and shorter settlement timeframes. My personal view is that by 2025 the average settlement time from contract signing to loan approval to final settlement will be approximately 10 days.
The brokers who will be around within the next five to ten years will be those who embrace technology and make it work to their advantage.
Technology has allowed Fintech platforms to come in and provide a different avenue stream for consumers to seek out finance. If a broker can identify which platforms along with which technological advances will assist in them getting across more consumers with greater urgency and speed than their competitors, then these are going to be the brokers of the future.
4. What are five tips you can suggest to customers considering a home, car or personal loan?
Number one has to be seek professional guidance and advice, getting any form of credit is a serious transaction so get help.
Do your research on which experts you need and what services they provide.
Understand your full financial position so you can then gain a clear understanding of where your affordability position stands.
What features will help you in future. Is an offset account suitable or will a redraw facility work for you? Can you pay off the loan sooner without any additional fees? Can you top up the loan?
Do your homework on the type of loan you are se
eking. Use the online platforms available to gain an understanding of current products, rates and features.
5. What are your predictions around future regulatory changes?
The regulatory environment will continue on the path of compliant, transparent and integral processes as to ensure continuity in achieving fair and equitable outcomes for consumers.
With hundreds of funding options and thousands of players this makes the lending environment an extremely complex machine with many moving parts. These parts continuously need to be serviced to keep up with market conditions, consumer needs and the economic environment.
6. What are your thoughts on cryptocurrencies and how technology can improve the whole process?
With the rapid advancement of blockchain we are now seeing leading technology companies invest heavily in this such as IBM. The finance industry, I believe, will be no different given blockchain is a decentralised database where verification and speed becomes a major advantage.
To my knowledge transactions that are undertaken via the blockchain will also be completed at a lesser expense than current platforms used today.
With these advancements we will start to see cryptocurrencies become more well know but given their unregulated environment along with their fluctuating values, I feel the move into the world of digital currencies still has some advancements which we will need to see come to fruition to progress further.
7. Why do you think the Lodex Marketplace is good for consumers?
Having lenders and brokers bidding for your business puts you in the drivers seat. An important discussion that consumers what to have with their lender/broker is what’s the best rate they can get.
The Lodex Marketplace allows this to be tackled from the outset and shines the light on the importance of a consumer’s affordability versus simply their serviceability.
Thanks so much Dino for your time and sharing your experience. We will make sure to add August 15 to the diary and acknowledge the day and all our brokers on our financial services panel.