Module 2 - Building Client Relationships V2!06!03-18

Module 2 – Building Client Relationships
This module covers two units of competency:

FNSASIC301 - Establish client relationship and analyse needs
This unit describes the skills and knowledge required to interpret and comply with industry regulations and codes
of practice when considering the characteristics of financial products and services for individual client needs. It
applies to individuals with excellent communication skills who are authorised as Australian Securities and
Investments Commission (ASIC) registered Australian financial services licence (AFSL) holders to provide advice on
deposit products, non-cash payment facilities and general insurance products at Tier 2 level.
FNSFMB402 - Identify client needs for broking services
This unit describes the skills and knowledge required to determine clients’ finance broking requirements and
explain capabilities, legal and compliance related issues so clients are aware of their rights. It applies to individuals
who are skilled at building relationships and who use specialised knowledge and analytical skills to provide advice
and a range of services for clients.
These units will also be covered in the next two modules.

There are 4 topics addressed in this module:
1. Effective Mortgage Broker Traits

2. Developing Client Loyalty
3. 21st Century Communication Skills
4. Personal Benchmarking
Now that you have learned about the compliance processes (legal and ethical requirements) of a mortgage broker,
this unit will help you to develop the personal and professional skills you require to provide effective customer
service, encourage loyalty from clients and ensure that your own personal brand is reflected well in everything you
do.
1 s ourced from https://www.socialmedianews.com.au/social-media-statistics-australia-july-2017

Module 2 Building Client Relati onships V1 26-01-2018 RTO 22401 1
Contents
MODULE 2 – BUILDING CLIENT RELATIONSHIPS ........................................................................................................................................ 1
TOPIC 1: EFFECTIVE MORTGA GE BROKER TRAITS .................................................................................................................................. 3
1.1 PROFESSIONALISM ....................................................................................................................................................................................... 3
1.2 HONESTY AND INTEGRITY.............................................................................................................................................................................. 6
TOPIC 2: DEVELOPING CLIENT LOYALTY ................................................................................................................................................... 7
2.1 PROMOTION ................................................................................................................................................................................................ 7
2.2 QUALITY OF WORK .....................................................................................................................................................................................10
TOPIC 3: 21 ST CEN TURY COMMUNICATION SKILLS ..............................................................................................................................13
3.1 EFFECTIVE COMMUNICATION SKILLS ...........................................................................................................................................................14
3.2 BUILDING RAPPORT....................................................................................................................................................................................25
3.3 COMMUNICATION STYLE ............................................................................................................................................................................28
3.4 BARRIERS TO COMMUNICATION .................................................................................................................................................................30
TOPIC 4: PERSONAL BENCHMARKING ....................................................................................................................................................31
4.1 TYPES OF BENCHMARKING ..........................................................................................................................................................................31
4.2 THE PROCESS OF BENCHMARKING...............................................................................................................................................................32
4.3 BENCHMARKING FOR BROKERS...................................................................................................................................................................33

Topic 1: Effective Mortgage Broker Traits
As a mortgage broker, it is important to develop strong relationships with your clients to:
a) Assist them to meet their needs
b) Develop loyalty for your personal brand
c) Build your own business
1.1 Professionalism
Mortgage Brokers deal with their client’s biggest investments. For many, a home is the most important asset they
will buy. A broker needs to be able to instill confidence to be trusted and relied on to provide service.
Personal Presentation
The saying “first impressions last” is well known but often not well applied when meeting new people. A broker
who turns up late to an appointment, who is poorly dressed and appears disorganised will be less likely to be
trusted early than one who turns up on time, presented professionally and with a clear sense of organisation.
Your workplace may have a uniform or dress code that needs to be followed or you may be able to choose your
own dress. It is important to stop and review what you are wearing, the way you are groomed and your physical
approach. Clients will make a judgement about you before you even open your mouth when you arrive at an
interview.
Points to consider:
• Wear neat business attire and wear it correctly. If you are wearing a tie, do up your top button and tie it
neatly, make sure your clothes are clean and look like you have taken care of them.
• Grooming is important. Clients do not want to sit in an interview with someone who has bad breath or
offensive body odour, likewise, it is unpleasant to be in a room with someone who is wearing too much
perfume or cologne.
• If you have an office and clients come to you, keep it neat and ensure that files for other clients have
been filed before a new client enters. This shows you respect the privacy and confidentiality of your
clients.
• Don’t arrive at an interview eating or smelling of cigarettes, take a minute to refresh, keep breath mints
handy and don’t enter someone’s home directly after finishing a cigarette.
Authority and credibility
When meeting a client to provide credit assistance services, a Mortgage Broker is likely to talk with the client about
their overall financial circumstances which may include items such as:
• Income, expenses and after-tax cash flow; and the various sources of income (if relevant).
• Assets, liability and the client’s net worth.
• Superannuation holdings.
• Personal and general insurance.
• Investments, such as shares and managed funds that could be used as collateral for the loan.
• Any business interests
It is important that the broker can speak with authority and credibility.
People tend to trust others when they feel they speak with expertise and authority. Introducing yourself and clearly
explaining your role, the work you and your business can do for the client and giving some examples of your
experience and credentials can help a client to feel comfortable that they have engaged with an expert.
A high level of expertise can give a client comfort that your recommendations and the information you provide has
credibility and that they can come to you if they have concerns or need more information.
Compliance
Mortgage Brokers are obliged, at law, to comply with financial services legislation and industry codes of practice.
The identified relevant legislation is the National Credit Code and National Consumer Credit Protection Act and the
Financial Services Reform Act. Also identified were the codes of practice applicable to the mortgage industry such
as the MFAA Code of Practice.
Benchmarking is the process of determining a standard to achieve, also referred to as “setting the bar”.
Benchmarking helps mortgage brokers to measure themselves against industry best practice, industry results (e.g.
sales figures) and their own standards and values. This will be explored in more detail in Topic 4
Mortgage Brokers must work within the relevant industry legislation and codes of practice when it comes to
providing product advice to clients such as the features, benefits and fees of the products. This will ensure that the
following key principles are followed:
• the product features and benefits are clearly explained to the client in a timely manner with no misleading
representations.
• adequate disclosure of product information so that the client can make an informed decision.
• conflicts of interest are avoided.
At this point in time, mortgage brokers who strictly sell loans are not required to comply with the training
requirements of the Financial Services Reform Act (FSRA) and Regulation 146 (RG146), as the FSRA excludes loans
from its financial product definition. Generally speaking the FSRA regulates deposit related products and facilities
and insurance products. For example, a savings account with a debit card attached would be classed as a deposit
product and facility.
However, it is worthwhile noting some compliance requirements for the following reasons:
• In the event that a broker is authorised to sell a lenders basic deposit products or general insurance products.
• the compliance requirements of the FSRA is a benchmark for best practice.
Other regulations you need to make sure you are compliant with include:
• National Consumer Credit Protection Act 2009
• National Credit Code (NCC)
Revisit Module 1 if you want to refresh yourself on these Acts.
False or misleading representations
A person must not make a false or misleading representation in relation to a matter that is material to entry into a
credit contract or a related transaction or in attempting to induce another person to enter into a credit contract or
related transaction.
Mortgage Brokers must ensure that they meet all the requirements of the National Consumer Credit Protection
Act and the National Credit Code.

Codes of practice and conduct
Many professional organisations have Codes of Conduct as the basis of their ethical frameworks. This assists
mortgage brokers in having a set of guidelines for how to act. These organisations include:
• Mortgage and Finance Association of Australia (MFAA),
• Finance Brokers Association of Australia (FBAA),
• Financial Planning Association of Australia (FPA), and
• Association of Financial Advisers (AFA).
The following codes of practice can also be referenced as a guideline for working with integrity in the sector:
• The Code of Banking Practice
• The General Insurance Code of Practice
• The Finance Brokers Association of Australia Limited (FBAA) Code of Practice
• The Mortgage & Finance Association of Australia (MFAA) Code of Practice

1.2 Honesty and integrity
Ethics and morals are similar concepts. Morals are the personal judgements that a person uses to determine if
something is right or wrong based on a range of factors including religion, upbringing and culture. Ethics are the
principles of appropriate and correct conduct, usually in interactions with others in social or business
circumstances. Following ethical principles, guided by firm morals will ensure you are working with integrity.
It is helpful to remember that the client sitting in front of you is not interested in a loan. They are interested in
fulfilling a goal of owning or maintaining a property (be it for investment, daily living or leisure).
Using your communication and interpersonal skills is critical at every point of the process. When working with
clients, consider what is expected of you and then what your clients would consider exceptional and worthy of
their advocacy (recommending you to potential future clients).
Presenting information to a client about fees, charges and features of products is expected, exceptional service
requires you being able to explain what these mean to the client in terms of:
• Benefits to the client
• Limitations of what they can or can’t do with their loan
• When and how the loan will be funded, repaid and eventually paid out
Clients will expect you to be an expert and for you to be honest with them always. Your clients will expect you to
tell them what they need to know with or without asking questions of you. You will need to be able to e xplain the
following concepts honestly and openly:
• Fees and charges (e.g. commission, loan service fees, lender’s mortgage insurance, late payment fees,
interest)
• Key features of loans including any limitations the client may face
• Key company policies that affect the client
• Complaint resolution procedures
• Processes that they will go through (e.g. touchpoints)
• What to expect leading up to settlement of their property
Ask questions to ensure that clients understand the information you have provided. Some clients may be buying
their first home and expect a slow, detailed explanation of every concept, other clients may require a refresher.
Don’t assume anyone’s level of knowledge.
Integrity describes moral and ethical principles and is the foundation on which people build relationships and trust.
An effective broker will set a personal benchmark of always acting with integrity. This means
• Following ethical principles and acting morally (e.g doing the right thing for the right reason)
• Open communication and honesty with clients, suppliers, colleagues
• Teamwork and collaboration
• Avoiding conflicts of interest
• Engaging in research and personal development to remain current and always give clients accurate
information
Taking Ownership
Taking ownership means being accountable for outcomes for a client. A mortgage broker should be the client’s one
point of contact and “source of truth” while they are in the process of an application. A client who contacts the
lender directly because they aren’t getting the results they expect from the broker may do so because the broker
hasn’t owned their application.
Following up is an important action to ensure that clients feel their application is being looked after.
There will be times a client has an issue that cannot be resolves to their satisfaction. As part of your obligations,
they must be made aware of dispute resolution channels available to them. These include the Financial Services
Ombudsman or the Credit & Investments Ombudsman.

Topic 2: Developing Client Loyalty
Loyalty is important to a broker for many reasons. Think about your mobile phone. Is it Android or Apple, or is it
another operating system entirely? Most people you speak to will be in either the “Apple camp” or the “Android
Camp”. Some clients will have a strong sense of loyalty to a specific brand or a specific service provider. Client
loyalty means that a client won’t even think twice before using or recommending your services.
2.1 Promotion
The foundation of a Mortgage Broker’s business is its clientele. There are a range of ways you can market your
business, but there is no stronger advertisement than word of mouth. One of the most powerful tools you will have
at your disposal if you develop a loyal client base. Promotional Options include:
Method Pros Cons
Advertising includes the development and Since you pay for ad placement in Advertising takes up a
paid delivery of brand or product messages media such as television, radio, significant portion of a
through media. Companies usually have newspapers and magazines, you company's budget
internal advertising departments that generally have more control over the allocated toward
design and develop ads, or they work with message than you do through some marketing and
advertising firms who specialise in the other promotional methods. promotion.
advertising process.
The reach can be wide, allowing for a
lot of people to be marketed to in one
event of marketing.
Public Relations - Maintaining goodwill with A general objective of PR is to keep The challenge is you can't
the public is an important long-term your brand in front of people even always control the way
strategy for both small and large beyond paid ads. your PR messages are
companies. A variety of public relations delivered or received
There are a variety of ways to achieve
tactics are used to reach out to customers through a third party
public relations - press conferences,
through unpaid-for media messages. Press
features news reports and
releases are one of the most common and
newsletters are common PR tools.
routine PR tactics. This is when a company
sends an overview of a major change or
event, product launch or other news to
various media outlets.
Selling is another form of promotion. Clients Selling is one of the most interactive Clients have to already be
may come in looking to just secure a loan forms of promotion. in front of you in order for
and through conversation with a broker you to use this method.
Meeting additional needs your clients
realise they have risk insurance and
have will strengthen the relationship
accounting needs that the broker can refer
them on to fulfil.
The evolution of the Internet and related These methods are often relatively Social media is notorious
technologies has given rise to digital and affordable for small businesses and for being a place to share
interactive promotional methods. Email offer direct connections to tech-savvy negative feedback and
marketing, online advertising and mobile consumers who spend significant complaints.
advertising have all become common time online. Social media portals such
components of promotional campaigns. as Twitter, Facebook and YouTube
also provide inexpensive ways to
interact with customers in real time.

Word of mouth
Word of mouth is very powerful, if one person tells five about their experience, and each of them tells five what
they have heard, that’s an immediate reach of 30 people. This can work in one of two ways. Positive impacts of
word of mouth include:
• A broker who comes recommended by a friend or family member is more likely to be trusted by a new
prospect because they know someone who has had a good experience with them.
• It’s easier than cold calling as clients approach you already warm to the idea of your services
• It is powerful to get the feedback from the prospect about why you were recommended to them to help
you maintain your customer base and their satisfaction
• If people are talking about the business, they know the business, recognition helps to build business and
have people seek a mortgage broker out.
Negative impacts of word of mouth include:
• Clients who have a poor experience will share it. Word of mouth can be hard to corral if it is negative
• People are more likely to complain on social media than deal with a problem directly with a supplier.
Client centred service
A famous book, first published in 1936 “How to Make Friends and Influence People”, written by Dale Carnegie is
one of the best sellers of all time, and the advice still rings true for client service today. This book outlines three
fundamental techniques for handling people:
1. Don’t criticise, condemn or complain (focus on positives, own problems, resolve them and remember, a
positive mindset leads to positive behaviour which can generate positive outcomes).
2. Give honest and sincere appreciation (appreciation must not be insincere, must be meaningful and
shared genuinely)
3. Arouse in the other person an eager want (get excited with your clients about the prospect of purchasing
a home, expanding a portfolio, renovating their home, make it all about what they want)
He shared a further six “ways to make people like you”. People tend to buy more from people they like or feel
connected to:
1. Become genuinely interested in other 4. Be a good listener. Encourage others to talk
people about themselves
2. Smile 5. Talk in terms of the other person’s interest
3. Remember that a person’s name is, to that 6. Make the other person feel important – and
person, the sweetest and most important do it sincerely
sound in any language

Show value
Tell clients what you are doing for them. Don’t do any work anonymously and don’t let others take credit for the
work you do for clients. Make sure that you take the time to explain the amount of effort you have put into helping
them achieve their goals. Delivered well, customers will see the value of their relationship with you. Done poorly
it can be misconstrued as bragging (or worse, complaining).
Statements that can help customers see value include:
“I promised I would call tomorrow to let you know the status of your application, bu t I chased up the lender today
and got an answer for you!”
“I know you’re in a hurry to get started, so I stayed back last night after I saw you and pulled together some
comparisons for you”
Regulations
It is important that when promoting products, the broker ensures they do not make any statements that could be
deemed false or misleading. There are harsh penalties under Consumer Law for providing in correct information to
clients. This applies to promotional material, information provided face to face, via social media, online or over the
phone. Refer to RG234 Advertising financial products and services (including credit): Good practice guidance

2.2 Quality of work
You need to ensure that the work you do is of the highest quality, this means that you need to remain up to date
and informed of any changes to market and ensure that you are always giving up to date, accurate and timely
advice. There are four key factors that an effective mortgage broker needs to be up to date with always to maintain
current and relevant in the industry:
1. The Economic Environment
The economic environment is a group of economic factors that influence buying and selling behaviour of
consumers. These factors include employment rates, income, productivity and wealth.
In addition to this, staying up to date with interest rates, exchange rates and inflation (not only current, but
forecasted) will ensure that a high level of expertise can be offered when servicing clients. The Reserve Bank of
Australia website offers the most up to date rates for inflation (measured by the CPI – Consumer Price Index),
interest (set by the Cash Rate) and exchange (the top four currencies traded are United States Dollar, Chinese
Renminbi, Japanese Yen and European Euro). Interest rates changed by financial institutions are set by the
institution and may also vary depending on the loan product sold.
2. Business Cycles
The business cycle relates to fluctuations in activity experienced by the economy. There are two key periods in the
business cycle – expansion and recession.
• Expansion relates to growth in the economy through greater employment, productivity, sales and
income.
• Recession relates to decline in the economy through higher unemployment, reduced productivity, sales
and income.
3. Financial Markets
Financial Markets are any market where trading of securities occurs. The following are the key financial markets
that apply to investors:
• Stock Market – This market is where investors to trade (buy and sell) shares of publicly listed companies.
• Over-The-Counter Market – This is the market for trading public stocks that are not listed on the major
exchange lists (NASDAQ, New York Stock Exchange, or American Stock Exchange).
• Bond Markets - A bond is a loan made by an investor with a predetermined rate of interest and an agreed
loan period.
• Money Market – The money market is centred on cash and short term (typically under 12 months)
investment (borrowing, lending, buying and selling)
• Derivatives Market – This market trades securities that derive its value from its underlying asset (e.g. stocks,
bonds, commodities, currencies, interest rates and market indexes)
• Forex (foreign exchange) Market – This is an inter-bank market as well as a market for private investment.
4. Financial Services Industry Participants
Maintaining current knowledge of other participants in the industry outside the mortgage brokering business will
aide in identifying specialists to refer to and provide forewarning about major changes to the sector. These
participants include (but are not limited to) credit unions, banks, foreign exchange service providers, insurers,
investment services (e.g. financial advisors), accountants, equity firms and debt resolution agencies.

You are your brand.
As a mortgage broker, everything you say and do will impact the way clients, peers, and potential industry partners
will view you personally as well as the way they view your business. It is important to remember this as a mortgage
broker as a great deal of business comes from “word of mouth” referrals.
Quality of work is partially driven by compliance and understanding the sector, but predominantly driven through
communication, honesty and interpersonal skills.
Branding is just as important for a single operator Mortgage Broker as it is for a larger broking business. There are
key tips on how to successfully implement branding of your business
1. Start by defining your brand.
Review the product or service your business offers, you can’t be everything to everyone right? pinpoint the space
in the market it occupies and research the emotive and rational needs and concerns of your customers. Your brand
character should promote your business, connect with your customer base and differentiate you in the market.
2. When building your brand, think of it as a person.
Every one of us is an individual whose character is made up of beliefs, values and purposes that define who we are
and who we connect with. Our personality determines how we behave in different situations, how we dress and
what we say. Of course, for people it's intuitive and it's rare that you even consider what your own character is,
but when you're building a brand it's vital to have that understanding.
3. Consider what is driving your business.
What does it believe in, what is its purpose and who are its he roes. These things can help establish your emotive
brand positioning and inform the identity and character for brand communications.
4. Aim to build long-term relationships with your customers.
Don't dress up your offering and raise expectations that result i n broken promises, create trust with honest
branding - be clear who your company is and be true to the values that drive it every day.
5. Speak to your customers with a consistent tone of voice.
It will help reinforce the business' character and clarify its offering, so customers are aware exactly what to expect
from the product or service. Don’t constantly change your branding, consistency is the key, constant changes will
make it more difficult to build your brand long term
6. Be innovative, bold and daring – stay true to your brand
Building your brand never stops, it should be visible and reflected in everything that your customer sees, if
creating a website, make sure you incorporate your voice and personality into your content. Once you have
chosen your voice, use it consistently.
7. Be your brand’s best advocate
No-one will know your brand better than you and once you start building that brand and hiring employees, ensure
they will fit into the culture of your brand, skill can be taught, attitude can’t
Successful brands have the following in common and are easy to demonstrate when implementing the above key
points: These are:
• Trustworthy, Honest, Reliable, Credible
• Compassionate, Patient
• A guide, A mentor
• An educator

Building loyalty in practice:
Marjorie visited Tessa to discuss her interest in buying her first home. Tessa was very patient and explained the processes
Marjorie would follow from application through to settlement. At the end of the conversation, Tessa said openly “I hope
everything I have taken the time to explain has been of help to you today…” with a pause. This technique states what Tessa
has done for Marjorie and leaves it open for Marjorie to respond, affirming that Tessa’s information has been helpful. This
puts Marjorie in a more likely position to describe the value of Tessa’s service to others as the statement directly tells
Marjorie the value of Tessa’s service.
Influence
Dr Robert Cialdini identified six principles for influencing in his book “influence: The Psychology of Persuasion” in
2011. These principles can be applied to sales and service roles where direct contact with customers is part of the
experience.
1. Reciprocity (people are more likely to give back if they feel they have received something from you)
2. Scarcity (people want more of what they think they may miss out on)
3. Authority (people will follow the credible knowledge of experts – identified by appearance, title, positive
word of mouth)
4. Commitment and Consistency (people are more likely to follow through if they have directly made a
commitment)
5. Liking (people prefer to say yes to those that they like)
6. Consensus (also called “social proof” - people will do what they see others doing)

Topic 3: 21st Century Communication Skills
Whether oral or written, communication is not successful unless both people understand the information in the
same way. Information needs to be relayed in a way that the recipients will understand.
Most of the time, when people communicate with others, they do not thi nk of how the recipient will interpret the
information being relayed. It is assumed that they understand what is meant. Too often, English language skill is
the only communication issue considered. However, within the context of our Australian cultural di versity, the
broader issue of everyone's inter-cultural competencies and of the responsibility of the communication sender to
develop this needs to be constantly addressed.
Around 25% of our community speaks languages other than English. In day-to-day dealings in a multicultural society
where co-workers and customers are likely to have diverse backgrounds, it is important to respond to the
diversities of languages and cultural differences that exist.
Language barriers and cultural misunderstandings can get in the way of effective communication and create
complexities in the workplace, including problems with safety and effective customer service. It is important for all
employees to gain expertise in cross-cultural communication.
It is important to communicate with respect and sensitivity to consider differences in culture, language, race,
religion, ethnic origin, socio-economic status, physical abilities and age/sex.
The way you present yourself will also communicate your commitment to your clients. Professional presentation
and an organised office or travelling file will communicate trust and integrity and the client will have an expectation
that you will help them in a professional manner. A messy, disorgani sed work space and rough personal
presentation may give them impression to clients that you will be disorganised with their loan application.

3.1 Effective Communication Skills
Effective communication is not limited to the communication you have face to face. Client centric communication
requires the broker to assess each client as an individual and determine the best communication for them. The
best way to do this is to ask, if this is not possible, understanding some of the principles of communication within
your selected choice will ensure that the intent of the message is not lost, feelings are not misunderstood and
everyone in the communication cycle has the same understanding. Listed below are some key points to consider
when in communication with your clients, peers, business associates and potential industry partners:
Email
One of the core tools of communication and often one that causes much tension and confusion. On average an
office worker can receive more than 60 emails a day. One of the first questions you should ask yourself when
composing an email is “Is this the best way to get my message across” would it be easier to pick up the phone and
speak with the person? Don’t use email if there needs to be back and forth discussion – pick up the phone.
Always remember that your emails could be printed and shared or forwarded and once the words are down on
paper, then can never be taken back
These simple rules are easy to follow and will get your emails noticed, read and most importantly actioned, super
critical if you are waiting for an answer on a loan application question.
1. Don't overcommunicate by email – Get to the point of why you are emailing, don’t ramble, don’t share
personal or sensitive information, remember that emails can be shared or forwarded to other, pay
attention to what you say in hitting reply to an email and who you are including in that reply . Do you need
to include the conversation history? Is there something in that history that a recipient that you have
included should not be privy too. Do not communicate bad news in an email, non-offers from a lender
should always be communicated by telephone and if possible in person.
2. Make good use of subject lines – never underestimate the power of Subject lines- remember that a subject
line grabs the attention of the recipient. Spam filters will generally remove any emails that have no subjects
or the abbreviation “RE:” Short and precise subject headings are best:
Instead of this Try this
Subject: Loan document signing - 10 a.m.

Subject: Meeting February 25, 2018
Subject: Please read and respond by 17th of

Subject: reply required March 2018
3. Keep messages clear and brief – emails should always be clear and concise, unlike traditional letters, don’t
try and fill an email up with more lots of different topics, its important to find a good balance in the number
of emails that you would send out. If you need to include several topics, place headings in the body of the
email with the required information underneath.
4. Be polite – when writing an email, the words you use are a reflection on your professionalism. A point to
remember is the same business etiquette you would use when speaking with someone should be adhered
to, when writing emails. The use of informal language, jargon or slang should be avoided. Worst still is the
use of Emoticons when you are not on good terms with the receiver of the email. A good close to your
messages can be “Regards”, “All the Best” or more formally “Yours sincerely”

5. Check your tone – have you ever received an email that you have read and immediately thought “Whoa,
what did I do wrong to deserve this email?” or were offended by the “tone” of the email? Your choice of
words, or lack of choice in some cases, how you place your punctuation, right down to the length of your
sentences can have impact of whether your message will be misinterpreted.
Geoff, Hello Geoff,

You still haven’t provided me with your Thanks for sending me through the letter that
payslips that I needed, and you have until confirms your employment. Last documents that I
5pm to get them to me. need from you are your 2 most recent payslips.
Could you please send them through by 5pm today
Fred and I can finalise the application and lodge with
Westpac.
Thanks so much
Fred
6. Proofread – Before you hit send, take a moment to read through your email. A good trick is to read it out
loud, first it slows you down, secondly your brain automatically corrects any errors you read on a screen
and by reading out loud, if you have forgotten punctuation or your sentences are too long, you will be able
to rectify before you send the email out. Sending out a well written email is part of your brand image and
is as important as the clothes you wear.

Telephone and Mobile Phones
Mobile phones are a normal part of everyday life, a fantastic and essential business tool with many businesses,
clients and industry partners communicating outside the normal 9am to 5pm business hours. Each upgrade of
mobile phone sees the phone becoming more versatile and important in the communication process. It is
therefore critical to your success that you use this tool correctly.
Your Voicemail message -The first place to begin is your Voicemail recorded message. If you have an office landline,
mobile or both, this part of the communication process cannot be overlooked. You are not available to answer
every call, so will rely on a recorded message, but what impression will people get when they listen to your
message? Does it accurately reflect your brand? Does it instill trust and confidence?
Hi, thanks for your call, you know the drill, Thanks for calling, you’ve reached the
leave a message and I’ll call you back voicemail of Geoff Alan of Home Loan Plus, I
am unable to take your call, it is important to
me so could you please leave your name,
number and a brief message after the tone, I
will return your call as soon as I can.
You’ve reached my desk phone, leave a You’ve reached the desk phone of Geoff Alan, I
message can't take your call right now, but please leave
a message after the tone. I will return your call
as soon as I am able. If you need immediate
assistance, please contact my secretary, Faye
on 9428 9632. Thank you for calling
Communicating on the telephone is still the preferred communication choice for many when it comes to doing
business and the better you are at communicating, the larger your client and referral base will be come. The
following tips have been put together to help you understand the importance of communicating via telephone:
1. Find a quiet place to make your call – this is especially important when using a mobile phone with many
business people using handsfree technology when driving. Ask yourself, who are you giving your attention
to when you do this, the other drivers on the road or your client or the lender? Walking through a busy
street or in a café/restaurant and making or taking a call can also mean background noise distraction and
calls dropping out when you walk through a black spot. Never ever make or take calls in the bathroom.
2. Listen without interrupting- When making or taking calls, you will need to hone in on your listening skills,
remember there are no verbal cues on the phone, with mobiles there is sometimes a small , often no more
than a second or two, time lag, which is often confused as the person you are speaking to has stopped and
you begin speaking. If this happens take those two seconds to wait before you speak.
3. Tone of voice – how you answer the phone, how you start a call, will without a doubt, set the tone for the
whole call. If it’s not convenient to take a call, let it go to voicemail rather than being snappy or short with
the caller, regardless of who they are. Smile when you answer the phone, it makes a huge difference to
your tone of voice. Try it.
4. Making that call - If you are going to take a call or a make a call, give the person on the end of the phone
your utmost professionalism. If you call, identify yourself, ask the person if it is convenient for them to
speak, even if you are returning their call. Speak clearly and be succinct, ensure you are not talking to fast,
especially if English is not your first language or that of the person you are speaking too. Speak with
confidence and trust and ask questions when you don’t understand or need a point clarified
5. Pay Attention – When making or taking a call, try, and it is hard not answer or read emails, tidy up, use the
microwave, give your caller your full attention. By doing this simple action, you will be conveying that they
are the most important person to you. If you don’t, it can come across as disrespectful and they could
think that you are not interested in them, or that you don’t think the conversation is important enough to
give it your full attention.
6. Placing someone on hold- on occasion you may have to put someone on hold, while you check details or
gather information or clarification from another person. Always ask you caller permission to place them on
call – if finding the information or checking details is taking too much time, set a time to call them back.
Avoid saying “I’ll call you right back” as most of the time, however good the intentions, calling right back is
not possible. When returning to your caller who is on hold, thank them for waiting, yes, thank them,
because they have been patiently waiting. Try and avoid saying “Are you there” when returning to a call.
Where else would they be?
Alice, I’ll just put on hold, hang on a I will need to check a few details Alice; would
minute you mind if I placed you on hold whilst I check
this out for you
Are you there? Thanks for waiting Alice, I appreciate your

time, this what I have found out……………
7. Closing a conversation – sometimes a client, peer or referral will be overly chatty, and you may find it hard
to close the conversation without appearing rude. Waiting for the caller to finish a topic and then
summarising the intent of the call and ending with “Is there anything else I can help you with” is a proven
method for completing your call in a professional manner. If the caller has made the call remember to
thank them for taking the time to
8. Follow up – the last piece of the communication piece – if you have committed to any actions in your
telephone conversations then follow up in the time you said you would, it builds credibility and even if you
don’t have an answer, touching base with your clients is super important.

SMS
SMS stands for Short Message Service and is also commonly referred to as a "text message". With a SMS, you can
send a message of up to 160 characters to another device. Longer messages will automatically be split up into
several parts. Most cell phones support this type of text messaging.
If you use SMS as a method for communicating with your clients, remember the following etiquette protocols:
1. Get permission from your client – you cannot start sending SMS’s to clients without their permission and
would not be the first type of contact you would have with a potential client.
2. Remember its personal – receiving an SMS arrives directly to a client’s phone, so consider the time of day
when you are sending your SMS. Always identify yourself – super important. If you are marketing a new
service of product to your existing client base, do you want them to receive it late at night – might be
asleep, during the rush hour commute to work – to busy to read, during dinner time – clients busiest
time. Timing is everything.
3. Abbreviations and jargon – not everyone understand abbreviated messages, don’t assume, even for
younger generations
What does this mean? Answer
CTN, date SLAP, can we meet F2F AEAP Can’t talk right now date sounds like a plan,
can we meet face to face, as early as possible
4. Don’t bombard – Equally as important as timing, overloading a client with too many messages is both
meaningless and annoying. Never send a text to tell your client that you are sending something by text!
You would be surprised how often this happens and it can annoy people. If you don’t have anything to
say, say nothing. Use SMS wisely

LinkedIn and Facebook
Using either of these platforms to connect with clients or other business people is now in the 21 st Century worth
considering when Facebook in Australia as of July 2017 has over 15 million users, LinkedIn 4.2 Million and Twitter
3 million monthly users. 1 They are good networking platforms and a good analogy would be they are like window
dressing your brand and yourself. Using social media is fast becoming a useful method of communicating your
brand to your clients. Which one you choose will depend on what outcome you are looking for. Each takes time
and commitment, so be prepared to put in effort to reap benefits.
Facebook and Twitter are truly social network platform, is designed to encourage people to share and
communicate. While LinkedIn has established a reputation for connecting university educated business
professionals, Facebook and Twitter have established a reputation for connecting almost everyone.
LinkedIn has been primarily focused on becoming the online Rolodex of connections for business people. LinkedIn,
known as the business networking platform, is touted as a salesperson's best bet as an added sales tool. LinkedIn
users tend to be white-collar University graduates, which makes the LinkedIn environment appealing to the
business community, job seekers, and corporate recruiters. Key tips for communicating with each platform
Method Dos Don’ts
Facebook Use a current profile picture – goes towards Post to often

credibility
Be slow to respond to positive or negative
Use videos- generates more views than words feedback
alone
Leave the “about” section blank
Use tracking URLS and Facebook insights to track
what people are looking at and commenting on
LinkedIn Use a current profile picture – goes towards Don’t just use “I’d like to add you to my
credibility professional network” without saying why.
What’s the benefits for you and the person you
Keep your profile current
want to connect with? Make your contact
Answer all LinkedIn messages count
Be proactive and selective in making new Don’t Spam as status updates
connections
Don’t confuse quantity with quality – its not a
popularity contest to have the most
connections if you do nothing with the
connections
Twitter Use a current profile picture – goes towards Don’t forget to vary the content of your posts
credibility you don’t want to become robotic
Be respectful, active and appropriate Don’t overuse hashtags
Choose carefully who you follow Don’t spam, but don’t just engage with your
followers, ensure you engage with other
Include your location
conversations of interest.
Tweet often and include promotions

Letters
There are mainly two types of letter, a personal letter or a business letter. These are the two most commonly used
types of letters. Business letters are formal letters, the following is a sample of a loan approval, notice how succinct
the letter is, what actions the client needs to take and by when.
When writing letters follow the same protocols as using Emails.

Intergenerational Communication
There are 4 key generations that may require services. Each generation has had different experiences with
communication and technology and different levels of exposure to financial services. Thes e generations include:
• Silent or Builders (born prior to 1946)
• Baby Boomers (1946-1964)
• Generation X (1965-1979)
• Generation Y or Millennials (1980-2000)
It is common for a Generation X or Y client to prefer written communication to phone communication, likewise, an
email or SMS may be considered impersonal or even disrespectful to a Baby Boomer. Tailoring your communication
skills to each individual client will ensure that you don’t make assumptions and unintentionally create a distance
between you. Once rapport is built, it can still be broken and can be difficult to repair.
Silent / Builders Boomers Gen X Millennial

1925-1942 1945-1962 1965-1979 1980+
Family Life • Earliest marrying & • Religious +/or • Adult oriented • “Special” (eagerly
babying generation spiritually from an early age anticipated)
• Silent women oriented • “Anti-child” • Lowest parent to
divorced in record • Health movement child ration ever
numbers oriented • Less parental • Universally
• Large numbers of • Waiting until supervision than protected
women in workforce later in life to ever before • Sheltered
later in the have children • Little peer
generational cycle • Have become interaction in
“helicopter” childhood
parents
Upbringing Great depression • Prosperity • Early technology • Greedy 80’s &
WW2 • Rebellion • High inflation and 90’s
unemployment • Rationalisations
• Corporate
downsizing
Financial status Save for a rainy day Indulge Investment plans Spend on credit
Employment Cradle to the grave On my terms Entrepreneurial Contracts

Communication • Formal & traditional • Explain things • Short, simple • Concise action
strategies • Clear, concise clearly bites words
messages • Questions • Informality – not • Emphasize fun &
• Newspapers answered for letters worth
• Mail them • Like feedback & • Stimulation of all
• Face to face, • Overwhelmed email the senses
by mail • Cell phones, • Fast response
• Like email, voicemail • Instant messages
phones & • Electronic NOT mail
answering newspapers
machines

Silent / Builders Boomers Gen X Millennial
1925-1942 1945-1962 1965-1979 1980+
Generational • Hard work (right • Hard work (to • Work/life • Good work ethic
values way) move up) balance for the right cause
• Privacy • Peer • More • Why??? Give me
• Loyalty & trust competition information reasons &
• “Paying your dues” • Challenge • Solve own justification
• Their word is their • Create Change problems • Questioning the
bond • “Show me” • Diversity status quo
• Honesty • Health & • Thinking globally • Don’t take orders
• Formal Personal • Economic • Fast track
communication growth awareness promotion
• Willing to sacrifice • Teams • Less trust • Respect needs to
• Hierarchy • Question • Resourceful be earned
• Patience is a virtue • Justify • Comfortable with • Taking short cuts
change
Handling complaints effectively

In Module 1, we explored the legislated requirements of a Mortgage Broker in handling complaints. During the
process of complaint resolution, how you the broker conducts themselves will affect the outcome of the complaint.
During the process no matter how, difficult it is or who is perceived as the wronged or injured party, maintaining
your professionalism is paramount to your success.
Complaints are never easy and there are many publications and websites to help with the resolving of complaints,
some key points are described below:
• Complaints are part of the continuous improvement cycle for a business – value you them and ensure
your staff do the same.
• Behave professionally when dealing with clients
• Know where to locate both internal and external complaint and dispute handling procedures and always
comply with internal policies
• Help clients to find access to the right documentation in a timely and efficient manner
• Be part of the solution not the problem
• Be proactive and keep lines of communication open with staff, managers and clients
• Be discreet and maintain business and client confidentiality
• Take ownership and responsibility of your mistakes, learn from them, teach others how to avoid the
mistake

Non Verbal Communication Skills
Effective communication is not only the spoken word, but the unspoken word, such as body language.
Body language is used by both clients and service providers.
• Only 7% of a message is conveyed in words.
• 38% of a message is conveyed via tone - vocal pitch and emphasis.
• 55% is conveyed through nonverbal communication Examples of nonverbal communication are: -
o Head movements (use nods to show you are listening, tilt your head to the side to show you are
thinking)
o Facial expressions (does your face show you are listening, are you saying yes, while your face says
no?)
o Eye Contact (consistent and friendly)
o Smell and grooming (it is important to look professional)
o Gesture (purposeful and deliberate, keep arms open, not crossed)
o Posture (sit up straight with shoulders back, or mirror your client)
o Touching, personal space and territory (particularly important in some cultures)
Try this: If you say the following sentence with emphasis on each word differently – the entire message is changed : I didn’t
steal your lunch
Emphasis on the I imply the speaker is aware of the theft, but not at fault
Emphasis on DIDN’T implies that the speaker was not involved whatsoever
Emphasis on STEAL implies that the speaker did something to the lunch, but it wasn’t stealing it
And so on.
Mirroring
Mirroring is a technique you can use that will help build rapport. Mirroring requires you to copy the posture and
behaviours of the person you are speaking with. If the client is sitting back relaxed in the chair, copying this and
sitting in a relaxed pose shows you will speak on the same level, if the client is sitting up straight and very serious
about the situation, slouching in your chair may give off an impression that you don’t take them seriously.
Encouraging others to mirror you can also be effective. If a client is yelling, this is not the time to yell. Speaking in
a calm, polite, even tone can be enough to calm them and have them reflect the same.
Mirroring done well:

Fredrick is interviewing Mandy for the first time. Mandy comes in anxious, sitting up straight and leaning over the table.
Frederick starts the interview in the same pose. Gradually, Mandy sits back in her chair and folds her hands in her lap.
Fredrick mirrors this posture to show he is letting Mandy set the pace.
Mirroring done badly:
Lilly is interviewing Peter. Peter is very relaxed and speaks to her candidly about his plans to build. He has his legs sprea d,
leaning back in the chair with his arms folded. Lily starts to slouch back in her chair, folds her arms and starts using
profanities also. This is unnatural for Lily, who has now dropped her professional standards instead of mirroring Peter’s
relaxation.

Listening
Listening is an important communication skill to be able to determine what a client needs. Most of us think that
because we can hear well we are also good listeners, but often that is not the case – think of times when people
talk over one another.
One problem is that our minds work at a greater rate than a person can speak, and it is therefore easy to be
distracted and think of other things when we are supposed to be listening to a client.
Good listening is active listening
Listening is a skill that can always be improved.
Listening can be divided into three sets of skills:
• using attentive body language
• using encouraging skills
• using reflecting and summarising skills.
Good listeners use specific skills called active listening skills. People who employ the active listening technique may
use the following skills.
• make eye contact.
• use verbal encouragers such as 'mm', 'uh', 'yes', and 'I see'
• ask questions directly relating to what the client is saying
• seek clarification of anything they don't understand by asking the client to explain or give more detail
• summarise or paraphrase what the client is saying
• encourage the client to provide more information
Paraphrasing
Paraphrasing is a basic communication skill for improving interpersonal relationships. It is a skill which requires
careful attention to the client and the ability to put oneself in their shoes and see things from their point of view.
In its simplest form, paraphrasing is a restatement of a word or a phrase. More usually, the objective of
paraphrasing is to say back to the client the essence of what they have just said. It arises out of a need to know
what the person's statement means.

3.2 Building Rapport
Interpersonal Communication
Rapport is the term given to a relationship between two people where each trust the other and feels they know
the other person. Seasoned salespeople, Schultz and Doerr identified 7 ways to build rapport in their book
“Rainmaking conversations: Influence, Persuade and Sell in Any Situation”. These 7 methods are:
1. Be genuine Be yourself, don’t try to be anything you aren’t and don’t adopt a “sales-like” tone
when interacting with your clients. Relax, smile and maintain a positive attitude.
2. Be warm and Use a warm and friendly approach. Greet people with a smile and handshake (where
friendly culturally appropriate), make eye contact and engage.
3. Show interest The one topic everyone knows the most about is themselves. This is where the
opportunity sits for a broker. Ask your client to tell you about themselves. This will
help to determine their goals and show them you are interested in them. If you are
genuine and relaxed when asking for information, clients will be more comfortable
sharing it
4. Don’t seem too Rapport can’t be forced. Being interested is one thing, being pushy and desperate is
needy entirely another.
5. Give Genuine This MUST be authentic. For broking clients, congratulating them on their savings or
Compliments the styling of their home will be appreciated. Don’t go overboard but do recognise
their efforts and achievements.
6. Calibrate the Use the time you have and make sure you build rapport before diving in. Even a client
rapport to “just in a rush will expect some level of care and interest in them. If you spend too much
right” time chatting, this may also be poorly received. Try to find a balance between
relationship building and discussing business that suits your clients.
7. Read the culture Always be yourself but adjust your approach to others and their environment. If you
are comfortable in jeans and a t-shirt, this may not be appropriate for every client
environment. Likewise, some clients may feel it is too ‘stiff’ to sit in a meeting with a
broker in a suit and tie.
Source: 7 Ways to Build Rapport in Sales and Connect with People – Mike Schultz
It is important that the broker maintains clear and open communication with the client throughout the loan
submission process. For many clients, this is the most important buying decision they will make. A smooth broking
process will assist any future long-term relationship between the broker and the client.
Stages of the broker relationship
The client relationship begins with your marketing and advertising. Whether this is word of mouth or a paid radio
commercial, a client will begin to form an opinion of you and begin to develop an opinion of you and your business.
Well-developed communication skills are important for a broker to have to lead to a successful interview.
An interview of any type can be a nerve-racking experience and not just for the person being interviewed. When
interviewing clients for home loans, empathise by ‘putting yourself in their shoes.’
Before arriving at the client's home or arranged venue, it is essential to have a developed interview technique. The
aim in an interview is to create trust and rapport. An effective interviewer asks questions that identify all the needs
of the client which can be fulfilled by the products able to be offered.

To be effective at interviewing, one must put their own needs and priorities second to tho se of the client. Unless
this is done, the focus will not on the client, listening will not be as effective, and as a result the Broker will not be
able to effectively meet the client's needs.
Asking the proper questions leads to trust. A Broker is seeking to develop a clear picture of everything that is
important to each specific client with whom they are doing business. This is essential to provide the client with
exactly what they want and need. It is important to be aware of all the stages of contact that shape a relationship
with your client. These include:
Stage Considerations
Setting the When setting an appointment, this may be your first conversation with a client and
appointment your first chance to make a good impression. When setting the appointment, make
sure you take a note of the time, date and repeat back the location and the client’s
contact details to ensure you have them correct. This sets you up to be organised and
helps to make sure you can attend on time. Make sure you leave adequate space
between appointments for travel and in case an appointment runs over. This is the
time to set a clear expectation of what you need from the client (E.g. evidence of
income) and how long the appointment will take.
Confirming the Before the appointment, call or SMS to confirm the time and location. This ensures the
appointment client is reminded and shows them you are organised. When you confirm, ask the client
if they have any questions and make sure they feel prepared for your time with them.
Greeting Greet the client with your name and using their name. Offer them a business card and
lay it out in front of you so they can see it while you are talking. This helps the client to
remember your name and provides them something tangible to write future
appointments on or to hold onto if they have any further questions.
Effective questioning Never assume anything. This client may be your hundredth client, but you may be their
first broker. Asking a person what they want and need will help to make sure the
recommendations. An effective question is a question that requires an open response.
Making Making recommendations is not limited to loan recommendations for a client.

recommendations Recommendations should be made to meet the range of needs a client presents. This
may include:
• Referrals to specialists (accountant / financial planner)
• Referral to a deposit taking institution to assist with building a larger deposit
• Recommendations for websites or further research to help the client’s
understanding of finance and buying / building a home
These recommendations will help build the relationship by demonstrating you can be
the single point of contact for the client’s needs and that you will point them in the
right direction for specific enquiries outside your scope of practice.
Closing the At the end of the interview, make sure that all the client’s questions have been
interview/saying answered. Don’t rush out, take the time to say goodbye and outline next steps and give
goodbye your client an action plan.
Following up the After the interview, a short message thanking the client for their time can go a long
interview way in establishing a strong relationship. Make sure you do everything you promised
you would do. A broken promise can lead to broken trust.

The lender
Communication with the lender throughout the broking process is also important. Any additional information
requested by the lender to support the loan application should be gathered and provided by the broker in a timely
manner. Avoiding any delays in the loan application assessment process will ultimately avoid a delayed settl ement.
Some examples of additional information that a lender may request includes:
• Property or Certificate of Title details from the client's solicitor:
• Further income details or evidence from the client's accountant:
• Letters confirming employment details from current and/or past employers.

3.3 Communication Style
There are a range of communication styles a person can adopt. Different psychologists and business scholars have
identified their own set of styles, so there are a number out there that can be researched. This module will focus
on three well known styles
1. Passive
2. Assertive
3. Aggressive
and some different approaches to communication
1. Direct vs Indirect, and
2. Competitive versus Affiliative
A communication style (or conversational style) is best described as the way a person chooses to use language.
This is not only verbal language, but non-verbal language also.
Type Passive Assertive Aggressive
Description Follows others’ opinions. Believes everyone is equal Dominates conversations,

Does not speak up even if and ensures everyone is wants everything their way.
they don’t believe in what is given equal opportunity.
being said.
Example Everyone else must be right, Everyone has something to Everyone needs to listen to
so I will just sit and listen contribute, including me me because I know best
Verbal • Quiet • Positive • Rude

• Submissive • Confident • Blunt
• Speaks very little • Polite • Talks over others
• Puts self-down • Regards self and others • Patronising
as important
• Praises others • Sees self as superior
Non-verbal • Avoids eye contact • Comfortable eye contact • Intense eye contact
• Nervous expression • Relaxed expression • Expressionless
Typical Often gets ignored or left Maintains positive Can upset others
outcomes out. Gives in easily. relationships. Gets outcomes (particularly those who are
that meet everyone’s needs passive).
Passive-Aggressive Communication
Some people take a passive-aggressive approach to their communication, this is where a person makes an
aggressive statement, clouded with a passive style. This is a manipulative form of communication. An example may
be a statement such as “no, that’s OK, I don’t mind that you’re late, it’s not like I had anything important to do
today”.

Direct vs Indirect: Direct communicators will state facts and expectations clearly. The benefit of this is that there
is little room for misunderstanding, but direct people may seem insensitive or rude. An indirect communicator may
make statements that imply a fact or expectation but will not state it explicitly. Indirect communicators are at risk
of being misunderstood due to their attempt at being polite.
Competitive vs Affiliative: An affiliative communicator takes the approach of working together to solve problems
and create ideas. A competitive communicator is more likely to decide by themselves and then direct others to the
solution they have chosen. At times both these styles have their advantages. Affiliate communication may go in
circles without someone willing to steer the direction of communication towards the end goal.

3.4 Barriers to Communication
There are many barriers to communication that can lead to the communication ball being dropped. One of the
major barriers to our communication is our own preconceptions. People may be judged according to:
• preconceived notion of their character,
• their needs,
• their motives,
• stereotyped image of the person.
There are many more barriers to communication. Some are listed here:
• Sympathy rather than empathy – not the same as each other, you sympathise when you feel sorry for the
experiences that some has had rather than empathising by putting yourself in their position
• Language – differences in language and understanding unfamiliar accents
• Cultural differences- the social norms of interaction can vary between cultures, what is acceptable to your
culture may not be in others
• Educational levels – thinking that a person doesn’t have the same level of education as you
• Beliefs and your difference in perception and viewpoints
• Prejudices or bias – based on race, age, gender, religious beliefs, political views, disabilities, sexual
orientation. All of these can lead to stereotyping
• Self-esteem – or lack of it
• Past experiences – we are all influenced by previous experiences in life
• Using jargon which is over complicated and unfamiliar
Many clients are apprehensive the first time they enter a financial institution or broker for lending. It is therefore
extremely important to create a friendly and business-like impression and quickly establish a rapport with the
client. You may need to engage a third party, such as a translator, to ensure the process is smooth for your client.
The key to overcoming barriers to communication is to be aware of them in the first place. Take the time to educate
yourself about cultural expectations of your clients.
Example 1: Simon’s language barrier

Simon is a well-educated man in his 50s. He has lived in Australia for 5 years after living in China all his life. He
works in a Cantonese speaking workplace and speaks Cantonese at home. His English is good, but he s truggles
with complex terminology. He spoke to a broker a few months ago, that came recommended by his business
networking group. They were very rude and treated him like he was an idiot when he asked them to explain
some terms to him that he wasn’t familiar with. He asked them to leave and went directly to the bank to have
them handle his enquiry. He spoke to a lending specialist who took the time to explain everything to him and
followed up to make sure he understood everything he was committing to. Simon told friends and family about
this experience and the broker lost a significant sales pipeline in the community.
Example 2: Fatima’s cultural needs

Keith has an appointment with Fatima in her home. On arrival he sees she is wearing a hijab. He has had
experience working with clients of the Islamic faith and is aware that she may not be comfortable shaking hands,
so does not offer his hand for a shake. She smiles warmly and extends her hand, so he shakes it politely. This
small gesture from him may be rude in other cultures (not offering his hand for a shake) but it allows the client
to dictate what they are comfortable with, indicating his understanding of her culture.

Topic 4: Personal Benchmarking
Benchmarking is the practice of comparing your business against standards set by
• Industry
• Peers
• Organisational requirements
The three key areas that benchmarking typically investigate are quality (e.g. customer experience and compliance),
cost (is the business making money) and time (is work being completed efficiently).
Benchmarking is a useful for several reasons. It is common practice for most successful businesses, and assists to
establish a baseline, identify best practice, identify areas for improvement and ensure that the business (and you
as an individual broker) are remaining competitive. When benchmarking performance against industry skills, a
broker needs to consider their compliance with and performance in terms of what is expected from the financial
services industry, not restricted to those working in mortgage broking.
4.1 Types of benchmarking

There are several “types” of benchmarking used in business. These include:
Process The business identifies a business that is known for having benchmarkable processes.
benchmarking Processes relevant to a mortgage broker may include:
• Record keeping
• Application processing
• Interview processes
• New applications or technology available
Financial Requires an investigation into results from other businesses (e.g. dollars written vs costs)
benchmarking and comparing against the business. Comparing commissions and other incomings may
contribute to financial benchmarking practices.
Benchmarking Extending the benchmarking universe to also compare to peer companies that can be
from an investor considered alternative investment opportunities from the perspective of an investor.
perspective
Performance Allows the business to review their competitive position by comparing service with those of
benchmarking others, through customer experience modelling as well as comparing available product
lines.
Strategic Requires observation of how others compete. This can be used within or external to
benchmarking industry, even looking at service from businesses in industries such as retail, hospitality,
business.
Best-in-class Requires a business to analyse the input and outcomes of the leading competitor in the
benchmarking market.
Operational Involves reviewing operational aspects of a business including:

benchmarking
• staffing
• productivity
• office / process flow

4.2 The process of Benchmarking
Six Sigma identifies the differences between Benchmarking and Competitor Analysis
Differences Between Benchmarking and Competitor Research

Benchmarking Competitor Research
Focuses on best practices Focuses on performance measures
Strives for continuous improvement Bandage or quick fix
Partnering to share information Considered corporate spying by some
Needed to maintain a competitive edge Simply a “nice to have”
Adapting based on customer needs after examination of the best Attempting to mirror another company/process
Source: www.Isixsigma.com
Qualitative vs Quantitative Measurement
Qualitative measures are based on the quality of something, they don’t have a number assigned, and are about
opinions and experiences. Quantitative measures as based on the quantity of something. Quantitative analysis
involves comparing figures and quantitative analysis requires the broker to gather information and then interpret
it to find patterns and draw ideas from it directly.
The Australian business resource business.gov.au – identifies six steps to successful benchmarking:
1. Identify what you're going to benchmark

Start with targeted and specific questions – the questions should be specific, capable of being explored using qualitative or
quantitative research efforts, and in line with your business strategy.
If you haven't already, it's recommended to do market research.
2. Identify your competitors
Write down a list of who your competitors are – most businesses benchmark within the same industry.
Identify effective tactics used by your competitors, and areas in which their business is performing b etter.
3. Look at trends
Look at recent statistics to analyse any current trends for insight into how fast your industry is moving, and how you can plan
ahead to keep your business in tune with customers’ needs.
4. Outline objectives
After the results of the analysis have been interpreted and communicated to the appropriate people, goals should be
established – these should be concrete, attainable and in line with your corporate strategy.
Make sure you list all your goals in your marketing plan.
5. Develop an action plan for your objectives
Define specific, concrete actions to be taken.
Your actions should detail the tasks involved and include specific names and dates associated with each task.
6. Monitor your results and implement an action plan
Continuously monitor the results of the benchmarking efforts and ensure the action plans are consistently applied.
Source: www.business.gov.au

4.3 Benchmarking for Brokers
To benchmark as a broker, the key requirements of industry and the role of a broker need to be reviewed.
Benchmarking What is it? How can it be measured?

Item
Quality Quality can be benchmarked in several ways. • Customer Satisfaction Surveys.

Quality relates to both quality of product (the
• Compliance with industry regulations
loans you select) and service (the advice and
(audit results).
support you provide).
• File audits (low to no error rate).
• Lender feedback.
Cost Cost in a business can come down to factors • Dollars written vs cost of sales (profit and
from staffing cost to cost of energy in a loss).
building. Some of these can be easily
• Comparing individual costs and resource
benchmarked.
usage against industry standard (e.g.
utility bills, stationery and equipment).
Time Time in a business is a good measure of • Length of time taken for application
productivity. It helps to determine if work is processes.
being done efficiently.
• Time allocated to personal and
professional development.
• Response time to enquiries.
There are a significant number of legal requirements that need to be upheld by a broker, for example continuing
development to maintain your Australian Credit License. This is an example of a quality requirement, where the
benchmark is industry wide. Benchmarking against other brokers will also assist in identifying gaps in skills and
knowledge that lead to competence as a broker.
Another area that brokers can benchmark against is outcomes. The Mortgage and Finance Association of Australia
publishes an Exclusive Finance Broker Benchmarking Report every six months. This report indicates the following:
• The number of brokers servicing the market (and whether this is in growth or decline)
• The total value of new loans written
• Gross annual earnings as an average figure
• The average value of new home loan settlements per broker
• The number of loans settled for the period
This document can help a broker to compare themselves against industry average and set ongoing goals to meet
or exceed these benchmarked averages.
Finally, comparing performance against the performance of others within the workplace to:
• Workplace standards
• Workplace policies and procedures
• Workplace Key Performance Indicators (targets)
Will assist a broker in identifying gaps in their performance as well as who to turn to for mentoring and advice.


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Module 2 – Building Client Relationships

This module covers two units of competency:

These units will also be covered in the next two modules.

1. Effective Mortgage Broker Traits

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Method Pros Cons

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Instead of this Try this

Subject: Loan document signing - 10 a.m.

Subject: Please read and respond by 17th of

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Instead of this Try this

Geoff, Hello Geoff,

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Instead of this Try this

Instead of this Try this

Are you there? Thanks for waiting Alice, I appreciate your

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What does this mean? Answer

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Method Dos Don’ts

Facebook Use a current profile picture – goes towards Post to often

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When writing letters follow the same protocols as using Emails.

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Silent / Builders Boomers Gen X Millennial

Employment Cradle to the grave On my terms Entrepreneurial Contracts

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Handling complaints effectively

• Behave professionally when dealing with clients

• Be part of the solution not the problem

• Be discreet and maintain business and client confidentiality

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Mirroring done well:

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Making Making recommendations is not limited to loan recommendations for a client.

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Type Passive Assertive Aggressive

Description Follows others’ opinions. Believes everyone is equal Dominates conversations,

Verbal • Quiet • Positive • Rude

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Example 1: Simon’s language barrier

Example 2: Fatima’s cultural needs

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4.1 Types of benchmarking