As waves of apps for every device and activity continue to flood the industry, brokers are being warned not to get caught up in the hype.
As waves of apps for every device and activity continue to flood the industry, brokers are being warned not to get caught up in the hype.
Justin Doobov, managing director of Intelligent Finance and number five on MPA’s Top 100 brokers list, says he hasn't felt the need to follow other brokers onto the app bandwagon.
“If someone is a really good broker and knows their products inside and out, they don’t need a computer to tell them what the answer is. They can use a computer and a software app to back up the advice and show the rationale of the numbers, but most calculations I can do in my head, most bank’s policies I know off by heart, and I’m confident enough in my knowledge of products and my ability to talk to a client that I don’t necessarily need to stand behind a software app or graph that comes up on my computer screen to say 'This lender is better'.”
Calculator apps in particular are of little value, says Doobov, as the majority of Intelligent Finance’s loan decisions focus on structure and strategy, rather than price alone.
“Some brokers use software and say ‘I’ve typed your requirements into a system and it spat out that lender C has the best rate, therefore that’s the best lender for you'. When we look at finding the right loan for a client the interest rate is probably the third or fourth thing we look at.
“You’re not being a good broker if you’re trying to squish a square peg into a round hole; you’ve got to find a square hole to put that peg in.”
Phil Eligio, digital marketing manager of Aussie Home Loans, is frequently asked why Aussie doesn't yet have an app, but stresses that Aussie isn't one to follow trends for the sake of it.
“I’m a big advocate for mobile solutions, and there are great opportunities to do some innovative things in the mobile space in Australia. However, despite the hype, you should always have a good reason to do anything especially when spending money in a tight economy.”
There’s no need to spend “tens of thousands” on something like calculator apps, which are already readily available in the market, just to be seen to be in the game, says Eligio.
“If you cannot justify any return on investment when splashing the cash on an app…well… you know what they say about a fool and their money?”
Aussie will be releasing an iPad and Andriod app in August, but Alex Crompton, head of marketing and digital at Aussie, says the release is part of a carefully crafted digital strategy.
"We decided at first the best possible way to serve our customers was to expand our mobile site and now, as the number of our customers using mobile devices has grown, we've decided it's time to release an app."
The development of the app has grown out of a strong demand from Aussie brokers, says Crompton, but there will always be brokers who prefer to do calculations on a laptop or in their head, and at the end of the day it is a matter of personal choice.
"Brokers all have various different ways in which they do their job, but there are a growing number of Aussie brokers who do do their business through apps and we wanted to give brokers and customers a way to understand key calculations and rates and improve their borrowing power regardless of screen size."
Doobov stresses that he’s not averse to working with apps in future, simply that nothing has yet been presented to him “that ticks the boxes”.
“I’m always willing to expand my scope and knowledge-base and toolkit, so if other brokers are using something that’s of benefit I’m not closed-minded to it, but clearly, as one of the largest loan writers in the country, what we’re doing today seems to be working.”
