Finance & Coffee Talk with Dien: Recent Episodes
Dien Le
Discussing all things finance lending related in Australia as it stands in 2020. Specifically aimed at the 3rd Party Lending (broker) space. Mortgages, business, asset, development funding and a myriad of other associated topics will be discussed....over a coffee.
Each week, we drop a video inside the group where you get to learn something new about a product or service out there that may be of benefit for you or your clients.
We make it fun by incorporating these sessions in a monthly quiz where you can win $1000 gift voucher from us? - All you got to do is take part in a monthly Quiz and get the highest score. Which means you can do it as many times as you like. This episode deals with outsourcing your back office. With the high court case in NSW regarding payroll tax in the headlines, it's probably a great idea to check whats out there.
New kid on the block - REMOTE BROKER SOLUTIONS - chats with us in this episode. Whilst new, David Browne has been in the industry as a broker for many years. So to say he knows your pain points is not an exaggeration.
So grab a cuppa and have a listen
In our conversation with Steve Matsoukas, a Legend in the Finance Industry, we delve into his remarkable journey. After running a successful food business alongside his brother for 16 years, Steve decided that the cold working environment was enough, so he decided to transitioned into the broker industry. His initial foray in 2002 with Aussie as a salaried broker laid the foundation, but it was after venturing out independently post his entrepreneurial success that he truly made his mark. Steve's narrative stands out not just for the strategic processes he implemented to expand his team, leveraging technology significantly, but also for his strategic alliances with major players in the construction industry.
Navigating the complexities of construction loans, which inherently pose challenges with extended settlement lead times compared to typical refinances or purchases, Steve's expertise shines. In the current business landscape marked by firms facing adversity, we inquired about Steve's concerns and his outlook on the future. Tune in to discover his insights and perspectives on these pressing matters.
In this podcast, I interview Ronald Pringle and Arun Gupta from Gateway Bank about their Green Pocket and Planet initiative and their commercial lending offering. Gateway Bank was the one of the first to offer a green home loan program in Australia, which rewards customers for investing in environmentally friendly, energy efficient housing. With the cost of utilities across the country jumping by 30% in recent months, a green home loan could save customers a significant amount of money on their running costs. Gateway Bank also offers a green loan program for commercial properties, helping businesses to finance the purchase or renovation of commercial properties with a loan that rewards them for their environmental commitment. If you are new to commercial lending, Ronald Pringle and Gateway Bank can help you through the process. We often think that commercial lending is different in that it is difficult, so why not chat to a bank that will guide you through the process rather than ask you to take a back seat?
In this episode of the podcast, Peter White from the FBAA discusses the organization's recent milestones, including their 30th anniversary and reaching over 11,000 members. They also discuss the CBA's recent change in clawback policy and whether other lenders will follow suit. Finally, they talk about the FBAA's involvement in International Broker Forum, which will be held in Las Vegas for the first time this year. Lets also not forget their own annual National Conference on the GC at the end of the year! Hope to see you there!
Here are some of the key points from the podcast:
- The FBAA is celebrating its 30th anniversary.
- The organization has grown significantly in recent years, reaching 11,000 members.
- The CBA recently changed its clawback policy, which could have implications for brokers.
- The first International Broker Forum in Las Vegas this year.
- The FBAA's national conference will be held in November.
In this episode, we sat down with Abraham Mathew from Suncorp Bank to discuss their image turnaround with F&C Members.
In the past, Suncorp Bank had a reputation for slow turnaround times. This lead to frustrations and a few memes on here.
However, that has changed recently. Thanks to their new Suncorp Bank Sunlight offering, applications are now processed "at lightning speed" - if they fit the mould.
Quick turnaround times make brokers look great in the eyes of their clients, and it has also helped Suncorp Bank to attract new business and fans on F&C.
In addition to their fast turnaround times, Suncorp Bank has also implemented an Instant Pricing Tool and a new digital verification of identity process called SunVerify. This process ensures that your clients can verify their identity super fast.
Key Points:
- Suncorp Bank has a new Suncorp Bank Sunlight offering that makes applications process much faster.
- Suncorp Bank has also implemented a new digital identification tool called SunVerify, ensuring a smooth verification process.
- Suncorp Bank’s new Instant Pricing Tool is the fastest way to find the best discretionary price for personal new lending – in matter of seconds.
- Speak to your Suncorp BDM to make sure its the business they want (Payg and Simple SE) to ensure a timely turnaround time for assessment.
Have you jumped on the Suncorp train yet?
In today's episode, we had the privilege of sitting down with the CEO of the Mortgage & Finance Association of Australia (MFAA), Anja Pannek. With her unique insights, Anja shared her observations on the industry and the association since taking the seat as CEO nine months ago.
We began by discussing the transformative power of Anja's role as CEO and the valuable observations she has made within the industry. From emerging trends to shifting dynamics, Anja provided a captivating overview of the ever-evolving landscape that brokers navigate daily.
Moving forward, we delved into the key challenges faced by brokers in the current climate and the proactive measures undertaken by the MFAA. Anja shed light on the association's relentless commitment to addressing these challenges head-on, ensuring that brokers are equipped with the necessary tools, resources, and support to thrive in their profession.
One notable aspect of the MFAA's work is its active engagement with the government. Anja provided a comprehensive update on the pressing issues the association is tackling in collaboration with policymakers. By fostering strong relationships and advocating for the interests of brokers, the MFAA plays a pivotal role in shaping policies that impact the industry as a whole.
To conclude the conversation, Anja shared her insights on the top three priorities brokers should focus on at present. Her expertise and strategic vision highlighted the critical areas where brokers can maximize their effectiveness and capitalize on emerging opportunities, ensuring their continued success in a dynamic and competitive market.
Prepare to be inspired and gain a wealth of knowledge as we delve into the fascinating world of mortgage and finance with the remarkable Anja Pannek, CEO of the MFAA. Let's dive into this captivating conversation and uncover the invaluable wisdom she imparts.
In this interview, we catch up with Mandeep Sodhi, CEO of Effi, to learn about their recent developments since our last conversation 12 months ago. During this time, Effi has achieved SOC 2 certification, which means that more aggregators should, in theory, accept them as part of their ecosystem for brokers to utilize. SOC 2 places greater emphasis on how security principles are implemented to address relevant risks, particularly in relation to the services provided to customers.
We also delve into the fascinating topic of chat GPT and its potential to assist brokers. Mandeep, however, is quick to raise the issue of caution when interacting with such technology. After all, feeding it data raises concerns about data security. It is crucial to ensure that your data is protected. Amidst these discussions, we explore the functions of Effi and the partners integrated into their ecosystems. These partnerships not only help brokers promote their own brand but also enhance lead conversion through Effi's Lead Management platform and a range of other tools designed to streamline the process.
In this interview, we speak with Anny Le Wilson, the Chief Revenue Officer of Joust, to discuss the topic of digital leads.
We begin the conversation by exploring what Joust has brought to the market over the past two years. Unfortunately, their offerings were often misunderstood by the market, with the focus primarily on their cheapest option rather than their superior "exclusive Leads" product which was more expensive. The adage "you get what you paid for" comes to mind here. The cheaper product will be phased out, as they recognised that it not only received unfavorable reviews from brokers but also provided a subpar customer journey for the individuals themselves.
This isnt uniquely a Joust thing, many brokers often attempt to purchase or acquire leads at the lowest possible cost, sometimes even resorting to overseas lead generation businesses that lack representatives in Australia. However, they frequently express dissatisfaction when these leads turn out to be unresponsive.
Lead generation businesses, in general, tend to have a poor reputation. But is the issue truly with the quality of the leads, or is it simply because brokers are not prepared to make immediate contact with the customers on the other end? By the time brokers eventually reach out to the leads, several hours may have passed, increasing the likelihood of dismissing a potentially valuable lead as insignificant.
As they grandfather one product they will be introducing a new one - leads that undergo a "warmed" handover, which, in theory, should significantly enhance the conversion rates compared to conventional methods prevalent in the market. Rather than simply sending an email or a list of leads to the broker, this new approach aims to establish a closer connection with the leads, thereby increasing the likelihood of successful conversions.
To find out more, click https://www.joust.com.au/partnership-opportunity.
In our recent podcast episode, we had the pleasure of speaking with Ryan Gair, the CEO of Rate Money, about the market performance in the first half of the year. Despite facing some significant challenges, Rate Money has not only managed to weather the storm but also expand its franchise operations. Which highlights that there are opportunities if you look at it. Not only is the Fixed Rates producing opportunities for brokers in terms of refinancing business, but the changing landscape of how the Australian Taxation Office (ATO) is now stepping up its efforts to pursue tax debt has also opened the doors for more potential business. This development presents a unique opportunity for brokers, as it opens up a different customer potential and market. Ryan encouraged brokers to set themselves apart from the competition, particularly those who primarily focus on residential lending. The discussion sheds light on the dynamic nature of the market and the importance of adaptability. Ryan's insights and challenges to brokers underscored the need for innovation and differentiation in order to thrive in the ever-evolving lending landscape.
In case you didnt know, the 2021 Tokyo Olympics are on. So it is timely we speak to someone who has been there and done that. They train very hard to be at the top of their chosen sport to represent their country at the ultimate sporting event. The level of discipline and determination is quiet frankly out of this world. Do these skills translate well after their days as an Olympian have past? This week we speak to Guy Callaghan about his story.
Guy represented New Zealand in the sport of Swimming for many years in the 1990s. He was part of their Olympic team to 1992 team to Barcelona and achieved Gold at the FINA SC World Champs in 1995. Everything was pointing to another place in the next Olympic games when the unthinkable happened, he failed to qualify! This was the beginning of his journey out of the pool (and New Zealand) and into another world that would eventually see him as Head of an exciting new SME Fintech in Australia called Banjo.
In this Podcast we chat to Victoria Coster (CEO Credit Fix Solutions) about what trends she has seen, given lockdown meant a lot of people have lost their jobs/unable to work. All of this affected their debt repayment obligations and hence their credit reports.
However before we get into that, we start the conversation talking as working parents and about the complexities of WFH. Dealing with children, their mental health and of course screen time whilst running a business.
The mental toughness to deal with those things in the "covid normal" times that we find ourselves in has pushed some people to the edge. Yet Victoria's business relies on speaking to customers who have life events that push their credit reports into less than ideal areas where lending assessments are concerned.
So you would think that the strength to continue to take the next case and listen to sad stories day in and day out can have a drain on you. How does Victoria and her team do it?
The word "innovation" is thrown about in media releases by a multitude of businesses including banks. But just how much innovation have you really seen? Since Gateway Bank was founded in 1955 with just one employee and a briefcase, they’ve always been pushing themselves to do business in the right way by being innovative.
Today, we’ve got Zeb Drummond and Arun Gupta from Gateway to clue us in on a range of innovations at Gateway and their accelerated commitment to their customer’s pockets and the planet.
Monthly LMI
First up is the monthly Lenders Mortgage Insurance (LMI) launched in collaboration with Genworth that has turned the whole home purchasing experience on its head.
Eco visa debit card
Traditional debit/credit cards are made from PVC which is petroleum based. Gateway’s Visa Eco Debit Card, on the other hand, is made from plants and kind to the planet.
Green Home loan Package
Gateway also developed two new green home loans with a competitive home loan rate to help you do your bit for the environment.
Both loans are Premium package loans with an annual fee, all features of premium products including 100% offset functionality
They’re currently only available to 80% LVR for owner-occupied purposes and offer a variable interest rate. They do also have the ability to be used for construction purposes, as long as it meets the environmental criteria for each loan.
“We want to do well from a planet perspective. The intention and the view here is a home loan rate with a discount to it as an incentive to help people on their way to be more environmentally-friendly and eco-conscious” – said Zeb
It's not often we have someone so senior in a multinational Bank give a candid story about their journey in Finance. In this Podcast, we speak to Glenn Gibson (Acting Head of Retail Bank at ING Australia). We find out how he almost didn't have a career in Banking at all because he wanted to go on a school holiday over the Summer with his parents before he started work when he finished high school. He didnt want to work straight away!
Starting out as a Batch Clerk for the NAB and then rising through the ranks quickly (because he "was an ambitious little shit"), it wouldn't surprise many to see why he was so successful.
We also chat about his journey into the 3rd Party space and how he came to Head INGs Broker Division. No chat is complete without his thoughts on what he believes ING has done right by brokers where other lenders have failed - Turn around times. It seems so simple yet many lenders don't get it right. It was actually one of the first things he did when he first come there.
How does he stay so well connected to brokers? It just so happens that his wife has run a broker franchise for many years. One of his daughters has also started her own brokerage after spending time working in her mum's business. They definitely help him keep his ears to the ground about what the industry is concerned about. Unfortunately his other daughter, who doesn't work in finance, must be bored out of her mind during family get-togethers!
A Senior execs who posts on Social Media with a personal touch? you wont find many around. Usually their accounts are run by the Bank marketing department and the posts are very "company line" devoid of any personality. Not so with Glenn. - "Because It's Friday" posts are fantastic on LinkedIn. If you are looking for some really great tips on where to go to eat or drink, definitely follow him and watch out for his post. As he does ALOT of traveling around Australia, Glenn is in a unique position to find some great spots for your next social or business meetup.
https://www.linkedin.com/in/glenn-gibson/
Its not often we have come across someone who was a former credit analyst (assessor) who took a leap of faith to the broker side.
In this Podcast, we chat with Joel Dieu about what prompted his move from SA to VIC - it was for love. Why he eventually came to realise that his career needed a little reset after working for some of the biggest lenders in Asset Finance. His move to become a Broker. His overwhelming deep aspiration to be more involved with helping customers; the enjoyment of the whole process: the sheer amount of labour it takes to get to finalisation of a loan application.
Joel believes there’s a happy middle ground where you have the freedom to work in your own time and on your own terms but also try not to get caught up in your own vision and ego.
Get your ears around this fascinating podcast episode for some practical wisdom from Joel.
Check out his work over here:
https://www.dreamcatcherfinance.com/about-us
17 years ago Anita Marshall, started her mortgage broking business as a one woman show in her spare bedroom to try and make a better life for her son as a single mum. She was told by an uncle (who was a broker himself at the time) that she was crazy and not to do it. However she was determined and it turned out to be the best decision she ever made.
Starting out in the travel industry and then for a credit union and struggling to make ends meet. The broking industry appealed to her as it was one where she could work around looking after a small child. Being there for school pickups/drop offs and much more was something she would not have been able to do in a 9-5 role.
Whilst her business has changed a lot over the years. She now has an office and small team in NSW whilst she lives in QLD. Technology has allowed her to continue without much interruption. She now no longer has to take regular trips from the Gold Coast and back for business! . You can tell from her voice that she still loves the crazy industry - "It’s the toughest I’ve ever known right now to get loans approved with the paperwork red tape nightmare but I’m confident it will get easier again".
She worked her ass off to make it happen ( and still does ). But most importantly she finds time to provide advice and guidance to strangers she has not met before.
A little chat with Luke Phan, Bluestone's Head of Product. Here at Finance and Coffee we love chatting to folks about their job and it's not very often that we get to sit down with a Head of Product. It’s a pretty cool job title but it’s one Luke Phan gets to live out everyday. Luke’s interest in finance started at a young age when he was helping his parents to run their family business. He was hooked and became passionate about helping people achieve their financial goals. In this episode, Luke talks us through his path from his first graduate role to working in product management for the last 15 years. These days, Luke spends his time experimenting with product design, doing broad research and looking at alternative solutions to help customers faster than a bank can. Curious about the scope of products they have at Bluestone and future projects? Have a listen to the full story and keep up to date with our future podcasts by subscribing through Spotify or Anchor.
In this episode, we picked the brains of James Angus, Chief Customer Officer from Bluestone, finding inspiration around the success of this fast-growing lender, just for you. James offers us an inside look at the changes made and the principle in which Bluestone sets their values around to do things that a lender like them has not done before. That brings us to over 30 policy changes in the past year that make the entire community sit up and take notice. They ticked those off and even built a full suite solution for Australia’s leading aggregator Connective to give their brokers a competitive advantage. Bluestone doesn’t get bogged down when the pandemic comes along – they pulled up their socks and just got on with doing the simple things well to help brokers and their customers. Tune into this episode for the full lowdown.
Growing up on the family farm (in which his brother now runs) to working for the largest bank in the world (at the time), to running his own Mortgage Management Company. This is one human's journey into finance that you definately want to listen to.
In this Podcast, Dien speaks to Murray Cowan about the ups and downs of the industry he has been in for over 30 years. Starting a Mortgage Management Business when it was sexy to do so, to surviving the GFC and now Thriving!
But, by no means was it an easy gig, and the mentality to sell the services of a mortgage manager to everyday brokers is definitely different from a BDM working in a Bank. How did he do it? What does it that for his sales team to also do? and most importantly, why should a mortgage broker consider using a mortgage manager in the first place?
Venturing out on your own is super-scary for many people, but it’s a decision that’s paid off for Czech-born back office solution expert Petra Novakova. We’re chuffed to have Petra in the hot seat to tell us how she built her kick-ass business Koruna Assist from the ground up. Long story short, Petra came from the Czech Republic and has spent her life living in England, Asia and Australia. Having started off working in offices for several finance institutions, Petra felt something was missing, deep down, she knew she wanted to do more. Petra decided to believe in her own ability and take a leap of faith. She now spends her days looking after her team of offshore virtual assistants and helping business owners outsource and free up 20-30 hours a week. So if you’re ready to down some inspiration in one gulp, tune in to find out more about Petra Novakava and her amazing life story.
How often does someone on the Credit/Risk side make the move to Sales?
The mentality is totally different. Whilst one waits to have a file passed to them to check if all things meet the requirements so as not to "harm" the lender they work for, the other is constantly out there hunting for new business, facing not only rejection but the pressure of sales targets. Dealing with credit and customers at the same time. In this Podcast, Dien speaks to Marco Symons about his accidental journey into finance. First as a credit analyst, then his move into sales. How his Father played an influential part in his mental toughness and business savvy.
We chat about his journey from Employed to Self Employed. Often times Finance Brokers entering industry start out in residential lending before they dabble in the commercial space, not so for Marco Symons who has taken the leap by doing the opposite. Have a listen to the podcast and find out why this was the case.
Where did bankers used to do their own banking? why it was with Gateway Bank! In this Podcast, Dien speaks to Arun Gupter (Manager Third Party Sales) and Zeb Drummond (Head of Customer Operations) about the Bank that has a Big Heart!
Founded in 1955, Gateway Bank is now one of Australia’s leading customer-owned banks. As a mutual bank they put their members/customers first. Profits are reinvested to benefit their members rather than shareholder return. Gateway Bank have a long track record in the broker channel, entering in 2009 and are grateful for the support they have received from brokers over the past 12 years. Gateway Bank have built a broad and loyal broker following, thanks to their competitive rates and of course their people – who provide their broker network with a reliable, proactive, and bespoke one-on-one service.
Given SLAs (Lender turnaround times) are a hot topic right now, we discuss what brokers should expect when they deal with Gateway Bank. In addition, we discuss how their team members assess applications on an individual basis, carefully considering each one, rather than relying on credit scores, to ensure they reach a mutually beneficial outcome for everyone. There is no such thing as an "auto decline" which can leave a broker frustrated in some circumstances.
Another topic which is pretty hot at the moment is the Government’s First Home Loan Deposit Scheme. Gateway Bank has allocations and have had great success in helping brokers and their first home buying clients access the Scheme and buy their first home. Family Guarantees can also be used for investment purchases as Gateway Bank understands that First Home Buyers may use this method as a stepping stone to get into the property market.
Gateway Bank understand and respect the sanctity of the relationship between brokers and their clients and are always mindful of this when designing their market-leading, competitive products, or interacting with broker-introduced members. Brokers will never find themselves losing out on a better rate, because they always offer the same deals to their direct customers as they do for their broker channel. Of course, they’ll always refer broker clients back to brokers for top-ups and other enquiries so that a Broker can maintain the integrity of their relationships.
In this episode, Dien chats with Aaron Milburn - General Manager Mortgages and Commercial Lending for Pepper Money. He is a massive fan of the broking industry and genuinely believes brokers are the people who can get their customers in the best possible place financially in life. Throughout his 18 years in finance services, Aaron has always been seeking every opportunity to learn and combine his passion for helping others with his professional career. His journey into finance begins with one suitcase as he sets off for his Overseas Experience (OE), uprooting his entire life moving from New Zealand to a small country town of Leicestershire in the UK. Aaron laid out with us his entire career, how he has worked his way up in the finance industry and how he later stepped into the broker side. His work connects him to a community of people who rise to their challenge. It allows him to ultimately help solve their problem and give them a second chance in life. Tune in for his wonderful learning journey!
In this podcast episode, Dien had a fun chat with Ryan Gair, the brilliant mind behind Rate Money – Australia’s leading financial service provider for the self-employed. Ryan has been in the finance industry for 18 years. On day one, he got out there cold-calling and door-knocking to drive the business. His resilience and willingness to learn led him to where he is today with the success of Rate Money. In this uncertain climate, many of us realised that the reality we have invested so heavily in can be changed at any time. Especially, the self-employed might find themselves in quite a pickle with unmet plans and aspirations. Not one to roll over and accept the situation, Ryan saw this as a great opportunity to provide new products with greater policy and flexible service to help his self-employed clients go that extra mile. For more on this episode and to join our largest community of brokers online head to https://www.facebook.com/groups/financeandcoffee
The email address for any enquiries is enquiries@ratemoney.com.au.
Salestrekker is the name of a CRM platform that all smaller aggregators who don't have their own proprietary software use. A few brokers and large brokerages who are with larger aggregators also use Salestrekker in addition to their aggregator software. Why is this the case? Ease of use and intuitive UX could be key. But who is behind Salestrekker? and what is the story behind why it came to exist? In this episode, Dien talks to Dalibor Ivkovic about his journey from refugee to a Powerhouse in the 3rd Party Broker space in Australia. Dalibor Ivkovic came to Australia as a refugee during the 1990s as a result of the unrest due to the War in the former Yugoslavia. He, his mother and sister settling in Tasmania because he had an Uncle who lived there. Having to overcome his struggle with a new language, he graduated university as an engineer and ended up in the Brewing Industry for 12 years! His career with Carlton Breweries (in VIC) lead him to Brisbane. And it is here that he started an unsuccessful Web Development Business which luckily lead to him accidently falling into the finance broker industry. By pure chance, a mortgage broker friend, John Paynter needed a new website built. This lead to John (and his assistant) receiving more leads than they were able handle. So Dalibor looked at the mortgage broker process to see how he could save time for John (and other brokers) by looking at where the inefficiencies were. Not long after that Xsource (a Processing Business for Brokers) was born. Being the Engineer that he was, Dalibor developed systems and processes before he started to build a customer base. All business was via word of mouth and today Xsource employs 80 staff to assist brokers from all over Australia. A hurdle he found early on was to track a status of a deal in-flight, both for the processor and the broker. There was nothing on the market at the time - they went through a few off the shelf platforms before building their own Platform - Salestrekker. Initially Dalibor was going to leave it to his mom to run whilst he concentrated on the main business - loan processing. Then one day, whilst attending a Connective PD Day, a speaker on the topic of Future of open banking sparked the idea that Salestrekker had the ability (and now the opportunity) to become something big. Luck was again on his side because a commonly used CRM at the time, Symmetry, as sold and then on-sold to larger businesses that didnt take an interest in the small sample size of mortgage brokers in Australia. As a result not much effort as put in place to keep it relevant to the Aggregators who used it as their CRM. Enter Salestrekker and the rest is history. One of the things that made Salestrekker so successful was because Dalibor was always looking for what that next bottleneck for a brokers will be in the future. Programmes that saw early adoption and integration by Salestrekker were things that would massively cut down on time on a file. Applications such as " e-sig, video conferencing and recording, bankstatements.com.au etc integrated for brokers to use. The Pandemic brought most of this applications to the forefront, especially video conferencing. Another matter in 2021 that will be critical will be Best Interest Duty (BID). As of 1 January 2021, BID is in play where Broker are to Act in the best interest of their client. Otherwise they would find themselves on the wrong end of the court system. Dalibor strongly believes that Tech will play an important role in helping brokers be able to successfully navigate BID. Those who dont pick it (tech) up will struggle to operate without their CRM or other tech solutions to prove their conversations with their clients. Are your processes and systems ready? Is there more education that is needed? Are you BID Ready?
In this podcast, Dien Le and James Angus (Bluestone's Chief Customer Officer) have a candid chat about what the non-bank lender is doing to win broker trust by treating them with respect and installing the belief that when they put business via Bluestone, they are given the respect that they deserve by having quick service with great BDM support. Building on that winning formula is also a game plan to take Bluestone to another level in 2021 by implementing new platforms that will allow new product offerings as well as technology capabilities to grow market share.
In the last few weeks, Finance and Coffee conducted a series of surveys inside the group. We asked questions around what brokers would like to see from non-bank lenders in order to use them more. The questions were things such as "what was valued more" from lenders such as SLAs, Rates / Cashback offerings, and BDM responsiveness. We also asked the same question about what they valued from the major banks. The results were surprising and we discussed them in this podcast.
As this podcast goes to air, broker market share has also officially hit more than 60%. This is despite 2020 being one of the toughest lending landscapes since the GFC. With the onset of COVID-19, we saw SLAs blow outs with some lenders to over 30 days, on top of record low interest rates and cashback offers across the board causing much mental stress on most brokers. This segways into an interesting conversation about broker segmentation. Why lenders do it and James' experience in implementing it and why it does not work. Especially for non-bank lenders where the philosophy is to "earn the right to do business" with brokers by building better relationships and training.
In this Podcast, Dien Le and James Angus (Bluestone Mortgages Chief Customer Officer) have a candid chat about the anniversary of Bluestone's launch of their Prime Product. More often than not, Brokers do not associate Prime Lending with Bluestone. Topics discussed are: How has it been received, what challenges have they had and most importantly, what it means to have Prime offering and the Pillars Bluestone have in place to support it.
- Not just a rate, but an experience - People First Culture
- Commitment to turnaround time of less than 2 days
- Hold / Wait times on the phone is no where near what can be deemed unprofessional
- Internal staff levels to meet expectations of a broker.
- Working with credit underwriters that will talk to you.
Also discussed are who will win the Melbourne Cup, what the RBA may do with rates and how the economy is going. Are the media focusing on the wrong stats?
-News for the week that was in Finance-
Covid News
- -Great news for VIC
- -NSW not so much
- -Covid Supplement to extend well into 2021?
ATO
- $120m clawed back Jobkeeper Payments from ineligible clients
ABS data on consumer prices
- Inflation has increased 1.6%
Carbon Neutral Targets
- Coal and natural gas purchases in Australia in danger as overseas governments adopt this stance.
ANZ has also announced a carbon neutral plan
- No assistance to finance coal and thermal plants
- No longer providing services to businesses whose rev (10%) is made up of coal / thermal.
- ANZ policy also applies to the construction of large scale office buildings - where loans will only be provided if they had a 5 star energy rating.
Wine exports has increased by 4% - despite all the rumours
Banking news
- ANZ - $500m cash profit hit
- NAB - Staff underpaid hits profits
- ABL - Board of ABL takes a paycut
And more!
News for the week that was in Finance.
Topics:
ABS release of data on how the market is performing:
Retail Trading - Slipped Backwards 1.5%
*However, figures are better than Sept 2019 ->Online Spending?
AustPost: expect $4 billion to be spent from now till Xmas - 25% increase in Online Shopping
WISR Result for first QTR of 2021 - Record 47% spike in lending
Is this a sign of debt consolidation or spending?
Payroll figures for people employed under 20 years of age has risen 6.1% since mid march
*This was before the Fed Budget JobMaker scheme was announced.
*Unfortunately, every other age bracket was in decline
*Younger Staff = Cheaper wages?
Fed Budget tax cuts have passed Parliament.
CBA: Cut 5 bps off savings account
What will the pensioners do whom rely on interest earnt on savings accounts as a means of income?
CBA also beefing up the Business Banking team
*1 day approval
*Biz Express (loans approved inside 12 minutes) will be the new platform that they will use.
Afterpay teaming up Westpac - Providing savings account
*Westpac then sold 10% stake in ZipCo (direct competitor to Afterpay) the next day.
Listen to this and more!
News for the week that was in Finance.
Topics:
*NZ Election and the Trans-Tasman Travel bubble.
*RBA - and the likelihood of a rate cut before Christmas
*Bluestone's move to go to 90% lend in Metro Melbourne and Sydney with No LMI / Risk Fee and a fantastic rate.
*Property prices and Auction Clearance rates.
and more!
In this Podcast, Dien Le and James Angus (Bluestone Mortgages Chief Customer Officer) had a candid chat about the Federal Budget, the easing of Responsible Lending and how that may have an impact on broker business.
Also discussed was an insightful look into the operations of how Bluestone worked with brokers in the current market, FY20 results, the impact of COVID-19, and Bluestone’s roadmap for the next 12 months and beyond. Some exciting products in development and one coming to the market next week like a 90% LVR with NIL RISK /LMI at 3.59% (3.60% comparison rate) being one of them. Full doc, owner occupied purpose only. Metro Melbourne and Sydney postcodes, Brisbane Metro to come at a later date. So listen in and then get in touch with your Bluestone BDM today!
**Interest Rates are correct as at 15/10/20 and subject to change at any time. The comparison rate is based on a loan amount of $150,000, over a 25 year term. WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Terms, conditions, fees and charges apply and your full financial situation would need to be reviewed prior to acceptance of any offer or product.
SMEs are the engine room of Australia, we hear this time and time again. SMEs employ around 4.8 million Australians (44 per cent) and are a major GDP contributor (57 percent). Employment growth in small businesses accounted for approximately 60 per cent of total employment growth in the private sector between 2013-2018. The pandemic has had devastating impact on small businesses in Australia, especially in the State of Victoria. However, if and when we are looking at reopening the economy, Australia’s “economic engine room” will be a major contributor to bringing Australia out of economic recession.
One of the biggest struggles for any SME will be getting the right funding to keep their businesses running and expanding once the economy opens up as well as the Myriad of Government Grants that may be available to them that they may not be aware of. Whilst the new Budget reflects the need for SMEs to get firing again, owners of SMEs often do not know the "what" and the "how" to get about it outside of the traditional BIG4 Lenders. With an explosion of SME FInTech Lenders in the last 4 years, the options are mind blowing, but the question is... where to start?
Would it surprise you that the same problem will be faced by other countries as well? In this Podcast, Dien Le speaks to Ciaran Burke - Co Founder and COO of Swoop Funding. The Tech Start-Up based in the UK has found swift and massive success by connecting SMEs to suitable and viable Lending options in addition to any eligible Government Grants that may be available to a specific business. Customers have their own financial dashboard to keep up to date on their financial and liquidity metrics and Swoop then alerts them when they become eligible for new funds. This episode dives into the "how" and the "why" the platform came about. Including the amazing journey that Ciaran and his team took to get it to where it is today. A short stint in Australia earlier in his working life sparked an idea to bring Swoop to Australia as well. Have a listen... and definitely watch this space.
This week's episode is dedicated to the Federal Budget that was delivered earlier this week.
Topics of discussion by Dien Le and Michael Tran are:
Personal income tax * Immediate personal tax relief for individuals * Exempting granny flat arrangements from capital gains tax
Business owners * Extension of the provision allowing small business to instantly write-off asset purchases * Temporary loss carry-back to support cash flow * Covid-19 response package * JobMaker hiring credit
Superannuation * Superannuation reform
Many in the Third Party Finance Broker space have heard of HashChing, but not many would know about it's visionary Founder - Mandeep Sodhi. Even Less would know about the cheeky story of how he went behind his parents back to prepare for his journey to Australia. Having now exited HashChing and starting a new business called Effi (or short for Efficiency) Technologies, Dien Le interviews Mandeep about his journey from his cheeky start in getting to Australia, to making a seismic impact in the FinTech Space. The chat also focuses on the mindset and determination one needs to successfully raise Capital to get a product from inception to MPV stage, to a powerhouse in the industry.
Mandeep's achievements are impressive: selected as one of the top 100 coolest people in Australian tech by Business Insider in October 2016, awarded Young Business Leader by IABCA in 2017, and nominated as Finalist for 2017 Young Business Leader of the Year award by Optus. For his contribution to Australia as a successful migrant, his name was even added to the 79th Bronze Panel of the Welcome Wall in 2018. With those credentials, we are sure Mandeep will make an even greater impact in the way Brokers do business in Australia with Effi.
News for the week that was in Finance.
*Rate Drop?
*Property Prices to go up?
and more!
Special thanks to Co-Host Michael Tran
In Grade 11, Tracy was bored and was seen filling out an application to join the ANZ Bank, with a little help (she later found out) she was successful in landing her first bank role. Little did she know that her Journey, in and out of Finance, would lead her to being one of the few Women Leaders in Banking. Currently Head of Third Party with Auswide Bank, Dien chats to Tracy in this episode, about her amazing journey. The lessons she learnt, how resilient, determined she has always been and on top of all of that she maintained an overall positive personality which clearly comes out in the podcast.
News for the week that was in Finance.
And what a week it has been!
*Responsible Lending Laws to be Axed to make borrowing money easier
*Westpac agree to proposed $1.3bn penalty for breaching AML / CTF rules
*The final Regulations and Explanatory Statement that was released on Monday
and more!
With over twenty years of experience in financial services, James Angus has seen it all. Currently with Bluestone as their Chief Customer Officer, many will also recall him as the former Co-Head of Personal Banking Intermediaries at Macquarie. While at Macquarie, he was a key figure in rebuilding and positioning the Macquarie residential mortgage brand with brokers and driving book growth through that channel. However, not many knew that he wasn't always at Macquarie, and that he had a stint as a professional rugby player. In this Podcast, Dien speaks to James about his journey in finance, how he was part of the original Dream Team that made Macquarie a trusted brand to brokers, what he saw pre-GFC and how that landscape changed post-GFC. Taking on a new challenge as Chief Customer Officer of Bluestone, they chat about what opportunities he sees within the changing lending environment as Australia enters a recession.
From a struggling single mother with no business skills living in a housing commission unit, turned award-winning business woman, Dien speaks to the lovely Victoria Coster about her journey going from "From Zero to CEO".
Why do we place a stigma on people living in Housing Commission Flats? How does one overcome that mindset and succeed? The fundamentals with life in general revolve around finance and the ability to access loans. Underpinning this is the credit report and how critical it is to keep it "healthy". Education is the key and that is Victoria's passion and mission to educate not only the brokers, but also University Students to Small Business Owners. Victoria has put all her learning and skills together from starting her own business as a struggling single mother with no business skills, to create a hands-on step by step guide to starting a business from home, click the link here to order the book.
With over 28 years experience in the Finance Industry, winning multiple national awards both as Broker of the Year and as a Mentor of the Year, you could say Tracie has seen it all. Working her way up from a Junior Bank Teller to the Youngest Female Branch Manager with Suncorp, hard work and determination was definitely something she had in spades. Taking the leap away from Corporate to became a Finance Broker and work for herself, Tracie's self-confidence and determination saw her excel where many did not.
In this episode, Dien chats to Tracie about her amazing journey, and tries to get into her mindset about the successful methods and systems that helped her and her team to be one of the industry leaders. It was through this success that she wanted to share what she had learnt and leave a lasting legacy that Tracie started one of the first Mentoring programs in Australia before "mentoring" became a compulsory requirement in the industry. This recipe saw multiple Mentees win awards and go on to create their own successful brokerages under her stewardship.
News for the week that was in Finance -
In this Episode, we talk about:
*Buy Now Pay Later
*Interest Free Credit Cards
*The State of the Economy
*Boarder Restrictions: What is the cost of these restrictions?
*Jobkeeper: some businesses receiving it at the same time as paying exec bonuses
*WA Rental laws
*Forcasts re drop in Property Prices
*Wage Growth vs Housing Prices
No stranger to the pain and pleasures of growing a successful business, Dien speaks to Kristy about how she fell into the Real Estate industry and then into the Finance Brokering Industry. Most brokers in the industry in Victoria know about her Super Broker husband, Josh, but for those outside the Loan Market circle, not many know about Kristy or what she did. From building her own Top 10 Real Estate business at age 24 to building teams, Kristy has done it all. Using smarts as well as the data that tech brings, looking at a business and how to scale it are at the heart of what she does every day. After many years with the Ray White / Loan Market Group, a chance encounter has lead her to take on a new Opportunity in the broker space. In January this year, Kristy Joined Mortgage Advice Bureau - An international leading mortgage broking network that originated in the UK and is now making great inroads in Australia. She is head of Partnerships and her role is to identify key strategic partners and work with business owners to help grow and streamline their business which is right up her alley! The enthusiasm and passion for what she does is evident from the sound of her voice, have a listen and you be the judge.
In this episode, Dien speaks to Paul Smith about his accidental journey into the Finance industry in Australia and how he came to find himself specialising in the field of Digital Marketing for Finance Brokers. The story begins with Paul coming to Australia with his dad on a two week holiday many years ago, that trip sows the seeds for his adventure Down Under a few years later. The podcast ends with news about his father passing and the sad realities of being unable to fly back home due to the Pandemic and not being able to say good bye. However, Technology via apps like Zoom, enabled Paul to say his good bye in a different and meaningful way. This Humans of Finance story is sure to tug at the heart, especially because Fathers day just past, and especially for those whose parents are not in Australia. Have a listen... and more importantly... dont miss that Zoom call from your parent (whether they are overseas or not) again.
News for the Week that was in Finance.
Australia Officially in a Recession!
Guest: Michael Tran
Overseas Experience (OE) is a New Zealand term for an extended overseas working period or holiday. Sometimes referred to as "The big OE" in reference to the extended duration of the travel - typically at least one year, and often extended far longer. For many Kiwis, the first destination is Australia. Bradley Ward didn't stray far from that trend.
Finding himself in St Kilda, he started out with jobs Backpackers tended to get when first coming to these shores. One such role was that of a door to door salesman for electricity! Through chance, he met and was given the opportunity to be a Real Estate Agent in St Kilda. He fell in love with the industry (as well as an Australian whom he married) and the rest as they say is history.
With an explosion in new Technology and Tech based businesses, Brad saw an opportunity to get into the PropTech (Property Technology) space when a role came up with ListingLoop. In this Episode, Dien chats to Brad about his journey, about where he sees the opportunities to harness Tech lies for Agents and Brokers alike as well as the everyday consumer.
For those in the Finance Brokering World, you would know that the last 2 years (up to Aug 2020) has been one of the most tumultuous times that the industry has had to endure. Funnily enough, Dan Brown decided to take a leap of faith and give it a go as a Broker during this very period. As at time of recording, a milestone was reached, TWO Years as a Broker. What a fantastic milestone it was indeed considering the usual head winds any new business would naturally face in their first 2 years, but this time compounded by the external events that affected the industry as a whole. In this conversation, Dien speaks to Dan about his journey from Banker to Broker, back to Banker again, and then back to Broker once more. They chat about what happened the first time round vs what he has done differently this time. How does one maintain the mental toughness to survive and thrive during these chaotic times is a testament to how good an operator Dan Brown is.
Finance Related News as it stands for the week ending 07 August 2020
Co Host: Michael Tran
Introducing Jane Slack-Smith, most likely the only qualified person to handle explosives in The Finance Industry! In this episode, Dien chats to Jane about her early career as an Explosives Engineer, her accidental move into sales and her journey into property investing. Being an engineer by training, she developed a meticulous formula that worked for her. Her desire to help friends and colleagues to also reach financial freedom via property investing meant it was an easy transition into Finance Brokering. Careful planning, continued learning and a never say die attitude (including a heath scare) as well as a very bubbly personality has helped Jane be on top of the game in the Brokering Space. Have a listen, there are some funny stories as well some take aways that every broker (as well as BDMs) should learn from.
In this episode, Dien speaks to Sam Arthurs, a Finance Broker in Warrnambool, Victoria, Australia. We discuss his journey coming from the UK and starting out in Regional Victoria, his time working for the Royal Flying Doctors and his transition into being a Finance Broker. Regional Finance Brokers do not often get a lot of attention from Lender BDMs, perhaps due to a number of factors such as policies on postcodes restrictions, property size or valuation notations that can wreak havoc on a finance application. The Pandemic and the move to Online catch ups means that Sam has been able to connect more, not only to lenders, but to other brokers. That said, he had phenomenal month in submission in July 2020, the dollar figure itself is huge. We must bear in mind the average loan size in Regional Areas is not the same as Metro. All this points points to him successfully building a brand as a Trusted Mate in an area that everyone knows everyone, so its no surprise he can be trusted with their finance.
In this episode Dien talks to Nick Homes, Co-Founder and CEO of a Payment Platform called Billzy. As with most people, Nick didnt start is career in Finance, it was actually Law. He fell into Real Estate and eventually realised that there was a Pain Point in the business he was in that could sink any large development... the issue of being paid on time. The issue is actually universal for anyone that is self employed. A job is completed and an invoice is issued, then you wait to be paid. Sometimes it can be 60-90 days before you receive payment. Everyone business does this.. delay payment for as long as you can. The problem is... this can destroy the business awaiting the income. As a result Billzy was born so businesses can get paid sooner. have a listen to the other problems that they tried to solve and the products that were created due to it.
Finance Related News as it stands for the week ending 07 August 2020
Co Host: Michael Tran
Im very pleased to announce a Partnership between the Finance and Coffee Community and ListingLoop.
ListingLoop.com.au is Australia’s number one real estate marketplace for pre-market and off-market property listings, The platform is designed to help people discover pre-market and off-market listings by bringing them together behind a login and by matching buyers to the properties most relevant to them. Sellers benefit too by being able to list their properties via their agent on ListingLoop.com.au immediately with no upfront advertising fees. It’s the first property advertising portal in Australia to offer a no sale, no charge approach to property advertising.
Listen in and find out more about this great start up and how it can help to increase your revenue with buyers applying for a Pre-approval on a home loan with you.
In this episode, I talk to Tanya Brimblecombe about being in a Sales Role inside a Bank - Business Development Manager Third Party. Specifically her Mindset on how she approached it. Moving Interstate and then landing her first BDM gig (Heritage Bank) with zero connections must have been a daunting experience. Then after many years, moving to a new employer (Adelaide Bank) with a different set of products/policies and having to do it ALL again requires a certain level of discipline as well as hunger to achieve sales numbers. After all, in any Sales role, you are only as good as your figures from the previous month. But what stands out in this interview is Tanya's genuine desire to help brokers, especially the new to industry whom are often forgotten. This makes Tanya a valuable partner to any finance broker who happens to fall under her portfolio.
In this follow up episode, Dien talks to Sarah about being the face of The Stranded Aussies stuck in Peru when the Peruvian Government unexpectedly and suddenly shut it's boarders due COVID-19. Upon successfully lobbying for assistance from the Australian Government to assist with the evacuation, Sarah finds herself coming back to Melbourne just as the city was going into Lock Down for the first time in March 2020. Being quarantined in a City Hotel was far from easy as it appears that plans to safeguard the community from the newly arrived passengers from overseas was not all that well thought out. The results were devastatingly clear because by July 2020, the State was forced into Lock Down once again with fingers pointed at the disorganisation around team responsible for looking after Quarantined Hotel Guests came to light. Sarah now finds her self back in Melbourne rather than travelling around Europe for the rest of the year. What does she do now?
Mental Toughness is the key to being a Tier One Level Athlete. Some would even say that trait it is also a deciding factor to being a sucessful business/salesman. In this episode, Dien speaks to Sean Wroe (who has represented Australia at World, Commonwealth and Olympic Level) about his journey from being an Athlete and competing at the Olympics to transitioning into a career in Finance Brokering.
In this episode, I interview Esha Frykberg. We chat about how he has come to have a strange accent and how he fell into the Finance industry. Similar to myself, his first foray into sales was a call centre environment. We discuss the challenges that were presented there and how that has help him achieve a "think skin", a trait you need to be in Sales - no matter what industry. We also chat briefly about Fintech, why they came about and where the sit in the environment.
In this episode, Dien talks to Maria Tomlinson (Owner of Complete Conveyancing Solutions) about her journey from working for a someone else in a Law Firm to taking the plunge to starting up her own conveyancing business. Being 2020, no one expected a Pandemic but then again when is there a good time to start a business? Luckily the process has been largely digitised which allows Maria to operate as normal.
We also discuss the conveyancing process and where a client should look to engage a Conveyancer as part of their home buying journey.
An award-winning property investor, mentor and mortgage broker. When it comes to buying property, there’s a lot to know. Just as the State of Victoria was going down into lock down for the first time in March of 2020, Dien talks to Garry about his journey and his approach with his clients to that help them to understand what’s possible and how to focus on keeping balance when it comes to building property investment portfolios.
Highly successful broker, Finance Industry Council Member and Vinnies Soup Van Volunteer. Have a listen to this wonderful human's journey since coming to Australia in 2006.
St Vinnies runs many initiatives around Victoria (and Australia wide), one of which I am involved with which is the famous "Soup Van". Every night the Vans go out no matter what the weather to feed the less fortunate on the streets, in the boarding houses and in some housing commission flats. There are multiple teams across the state servicing different designated areas/regions. What many do not see (or are aware of) is the army behind the scenes prepping the food for the van teams, keeping records and ordering the stocks and run the organisation itself like a well organised machine. However, like many charities, it not only relies on the volunteers to provide the human resources, it also relies on money either by way of donations, charity events or via its retail arm.
Winter is a time where many people may buy wood for their log burner to keep warm. St Vinnies has come up with a novel way to not only sell a product that keeps you warm from re-purposing wood off cuts, but also help it run its various programs around Victoria from profits made.
Completely natural - made from Radiata Pine and Victorian Ash Hardwood waste timber that would otherwise end up in landfills, saving trees from unnecessary felling
In this episode I talk to Jason Hulbert (VIC BDM of St Vinnies) about what this initiative is and why you too should consider buying Wood for Good.
Also the promo link attached…
“Sorry mate, not good news.”
And with those 5 words, my twenty year career in Stockbroking came to an end.
When the GFC hit. Almost overnight, the industry collapsed. Stockbroking firms were hit hard, and good workers, with lots of long-term experience were being made redundant.
I was at the crossroads, my son Alex was 18 months old and my 6 figure salary disappeared. My Stockbroking skills couldn’t be quickly transferred anywhere else, and I had no idea what I could possibly do next. Stressful times.
I somehow stumbled across a Mortgage Broking post on LinkedIn for Masters Broker Group. The rest is history.
A Pandemic has been declared. The share market has tumbled, Businesses will close, and people will lose their jobs. Rather than panic, We discuss practical things to do now.. eg get cashflow funding whether you run a business or only have a home loan. We also discuss working from home what you should think about doing.
Coffee Cocktail: Bourbon, Frangelico, Lemon Bitter and Coffee. Dien chats to Lauren about protecting the home loan with insurance. No one expects a life event to impact them which makes paying a mortgage difficult. Did you know there is also insurance in case your child gets sick and you need to take time off work to look after them and not worry about losing your house?
Week 2 post Reserve Bank dropping rates to a historic low. Does this cause increase in demand for loans? Does this cause rework? We also talk about The Corona Virus and how it has impacted the wider economy. Human behaviour can be irrational and how this may impact the overall finance ecosystem.
I chat to Patrina Chia from Mortgage Zone over some coffee Cocktails. We talk about her experiences about being a broker. Telling it like it is. We discuss the differences prior to and after the GFC. We also talk about business relationship building, the basics, have they changed much over the decades?
Michael Budge. One of the OG member of Finance and Coffee. We discuss his journey from Broker to Asset Finance Specialist. Becoming a trusted partner to other brokers who did not specialised in Asset Finance. In 2019, he also added Heart Attack Survivor to his list. Now he spends his time campaigning to get a new treatment added to the PBS so that the treatment he has received can be accessed by more people.
How traditional Vietnamese Coffee is made... slow drip. As it drips, Dien talks to Andrew about mentoring and what happens after the mandatory first 2 years is up. A true Master, we discuss why brokers/business owners need continued coaching regardless of how long you have been running a business.
Drive and determination are ingredients of a successful finance broker. Sarah has taken that by smashing it (making into the Top 150 PLAN Brokers). We talk about her passion to pass on her knowledge and experience by being an Accountability Coach.
Turkish coffee refers to the special brewing method. Turkish coffee is made unfiltered with finely ground coffee beans (so fine that they resemble the texture of cocoa powder). The ground beans are boiled with sugar and cardamom in a special pot called a cezve or ibrik - We also talk about how you can use a Deposit Bond as part of a home purchase process.
Introducing you to the world of coffee as well as all things relating to Finance in Australia as it stands in 2020. There is more to life than a Latte or a Flatwhite. This short episode sets out what i want to do with this series. Each week I will interview a different guest over a different type of coffee out and around Melbourne.