NFI Diploma: Finance and Mortgage Broking Exercise 4 Analysis

This document presents a comprehensive solution to a finance and mortgage broking assignment. It addresses various aspects of the field, including effective communication strategies to meet customer needs, behavioral competencies for outstanding customer service, and methods for organizational improvement. The assignment explores the importance of laws and responsibilities, ethical practices, and the process of identifying customer needs and providing suitable loan options. It also covers topics such as handling customer objections, understanding different personality types, establishing successful networking, and the interrelation of financial service sectors. Furthermore, the assignment delves into environmental sustainability in business, the requirements for an ACL application, key features of different loan products, and the importance of providing excellent service. The document offers valuable insights into the practical application of mortgage broking principles and industry best practices.

FINANCE AND
MORTGAGE BROKING
EXERCISE 4

TABLE OF CONTENTS
MAIN BODY...................................................................................................................................1
QUESTION- 1.................................................................................................................................1
Listing important five points to ensure communication delivers on customers needs ,
expectations and priorities...........................................................................................................1
QUESTION- 2.................................................................................................................................2
Describing specific behavioural competencies for providing outstanding customer experience
and ways to measure it.................................................................................................................2
QUESTION- 3.................................................................................................................................3
Explaining the way in which organization collect information to facilitate continuous
improvement ...............................................................................................................................3
QUESTION- 4.................................................................................................................................3
Evaluating importance of laws and responsibilities ....................................................................3
QUESTION- 5.................................................................................................................................4
QUESTION- 6.................................................................................................................................4
Recommendations to improve service delivery to prospective customers..................................4
QUESTION- 7.................................................................................................................................5
Three common types of objections that are handled by the mortgage broker.............................5
QUESTION- 8.................................................................................................................................5
Four main types of personality that the mortgage broker has to deal..........................................5
QUESTION- 9.................................................................................................................................6
Five point plan to successfully establish networking..................................................................6
QUESTION- 10...............................................................................................................................6
Four different sectors of the financial services industry and their interrelation..........................6
QUESTION- 11...............................................................................................................................7
Five things to make the business environmentally sustainable...................................................7
QUESTION- 12...............................................................................................................................7
10 documents required for an ACL application...........................................................................7
QUESTION- 13...............................................................................................................................8
Four loan products and their key features....................................................................................8

QUESTION- 14...............................................................................................................................9
QUESTION- 15.............................................................................................................................10
REFERENCES..............................................................................................................................13

MAIN BODY
QUESTION- 1
Listing important five points to ensure communication delivers on customers needs ,
expectations and priorities.
 Communication play crucial role in delivering valuable information, to other
person so that better understanding can be developed. The foremost thing which
should be taken into consideration is patience as it play important role in
understanding customers needs and expectations. Patience enables the parties to
have significant share information that can aid them to make any important
decision.
 Accuracy of information is one of the crucial components of an effective
communication as efforts taken to deliver and prioritizing customer need is
irrelevant if obtained data is not reliable. Providing fair information helps the
customer to develop understanding bout market trends in turn better judgment can
be made. It contributes in avoiding errors and mistake that can impact progress of
specified party.
 Having an proactive approach always attracts the customers as they are receiving
attention for solving their particular problem. Being able to deliver quick response
make customers able to trust the communicating persons while sharing their
opinion about particular product or services (Barry and et.al, 2019). This aids in
identifying clients expectations so that suitable alternative according to their
preference can be suggested. Inactiveness is one of the cause of losing buyers s
taking this particular point into particular point is insignificant.
 Honesty always leads towards success so while delivering any information sender
should make sure that it’s all provided data are correct. Manipulating customers
with wrong subject can lead to harm reputation due to negative customer
experience. In addition to this, having honesty in process of delivering required
component as helps in achieving trustworthiness that can result in good
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conversion rate. Precise and clear way of giving required information aids to
resolve the client’s issues and assist in prioritizing their expectation.
 Avoiding interruption and knowing each and every detailed regarding products &
services gives activeness while distributing any subject matter according to
customers needs. This becomes essential to avoid external factors so that full
concentration on client can be obtained. It helps in achieving client’s attention and
achieving desirable outcome of communication with customers.
QUESTION- 2
Describing specific behavioural competencies for providing outstanding customer experience
and ways to measure it
There are variety of attributes that are essential to be posses by staff for providing
effective customers service on continuous and consistent manner. Staff should be prompt in
order to understanding the changing circumstances by giving emphasis on taste and preferences.
It requires a good range of patience which aids in analyzing the individual behavior and
responding accordingly. It provides assistance it having activeness in turn to deliver suitable
suggestions that can fulfilled specific requirement of client. It can be measured by reviewing
staff ‘s duration of communication with customers (Gaid and et.al., 2020). Problem solving
behavior of employee permit the buyers to interact in suitable manner and share information
regarding their expectations so applicable course of action can be derived. Having open minded
approach to evaluate and problem and clearing giving methodical approach in respective manner.
customer survey, 360 degree & KPI assessment contribute significantly in determining the result
of competency. Customer experience with satisfaction score can be identified so that
improvement in skills to derive this on upper scale can be taken. Ability to utilize positive
language in dealing with clients without giving any negative comment on any other service or
products aids in convincing and believing about benefits of services & products. Respecting
every segment of society is one of the essential behavioral attribute as it enable customer to
understand broker’s creativeness & resourcefulness. This is crucial for employee to have positive
approach towards everything to create good atmosphere to get full attention of client through
reading their needs. Time management is another behavioral competency which helps the staff to
provide all time consistent and improved customer experience.
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QUESTION- 3
Explaining the way in which organization collect information to facilitate continuous
improvement
Business environment is changing continuously and requires competitive advantages to
cope with varying situations. It becomes essential for firm to analyze its current performance
in terms of employees potential a, market share, revenue generating, etc . to know lacking
areas. This lacking components contribute in creating barriers in path of success. It becomes
crucial for company to develop a significant approach for measuring and evaluating its actual
outcome (Aksnes, 2019). Company can develop internal as well external procedure to obtain
the information regarding improvement areas. For making changes in its micro factors
through developing approaches like benchmarking, KPI, etc. so that actual results with
predetermined standards can be measured by analyzing causes behind it. There are various
other factors that need to be consider for analyzing current performance of company. With
respect to this, having feedback mechanism also assist in making continual improvement by
evaluating low performance of each function so that suitable action for modification can be
identified and implemented. In addition to this, conducting customers survey can enable
organization to develop understanding regarding product or services efficiency, staff
performance, changing taste, etc which can be taken into consideration for implementing
actions.
QUESTION- 4
Evaluating importance of laws and responsibilities
Government establishes various types of laws for brokers which are crucial to follow in
order to behave ethical practices. It is important to enact variety for rules and regulation in
respect to protect clients’ interest. In addition to this, this enables to set boundaries for staff so
that assurance of ethical practices can be maintained. To have healthy and trustworthy working
scenario in broking industry in turn clients can rely on them for continuing their trading as well
other commercial practices (Daly, 2018). It become significant for official authorities to execute
laws like Australian consumer & contract act, disclosure of conflicts of interest, corporation act,
etc to protect clients. The responsibilities of brokers are related with making reasonable enquiries
about borrower’s requirements & objectives, evaluation of financial information, disclosing
charges, interest, commission, etc information, providing suitable product through market
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analysis, making customers aware about pros & cons of suggested service, ethical utilization of
documents of customers, etc. it is important for broker to conduct all broking practice sin
accurate and fair manner.
QUESTION- 5
As a mortgage broker, the first and the foremost important thing which will be taken into
consideration would be the identifying the needs and expectations of the customers which is the
base for putting forward a request. Proper evaluation will be carried out as per the client’s
requirements through various methods and then the urgency of the request will also be identified.
In addition to this, the priorities will be made in respect to the timely delivery of the services to
the customers which involves the evaluating proper documentation, request of the clients, time it
will be taken to meet with the request, the communication system that will be used for
communicating the status of the application to request to the customers. After the completion of
this, the next step is to identify the possible choices which is being available with the customer to
select from. The choice is decided based upon the criteria or the requirements provided by the
customer.
Post identifying the various options that are available with the customers, they have to
assist them in the selection procedure which depends on their preferences, current status and also
the risk profile that can be undertaken by them. The mortgage broker shall be offering the basic
knowledge regarding the alternatives and what is the most suitable one among them. As soon as
the decision is made timely and efficiently the services are to be delivered to the customers. Then
finally proper networking must be executed with the clients, feedback must be acquired, the
complaints must be resolved and ensure regarding the future assistance as well to the customers.
There are many ways and techniques available in the world of business that a mortgage
broker may adopt and consider to assist in the context of process regarding possible choices
selection to customers. They may take initiative to communicate personally with target customer
and provide information about available options in term of each key benefits which enable an
individual to take better decision and select what they want to purchase. It is the best way to do
so in ethical and effective manner.
It is quite important to enhance the satisfactory level of customers and provide services as
well as products to them that also contribute to do so. When a service provide is unable to satisfy
consumer needs they may actively take an action in term of apologizing gracefully and finding
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better solution to deal with this situation. They may conduct a face to face meeting through
which individual may understand each customer effectively and take further actions accordingly
to do not repeat similar mistakes every again.
Customer may take initiative to obtain appropriate advices from assistance who may
provide so in understand way, which they may completely learn without taking any mistake.
When they need guidance, they may take so with whom who may have better understanding
about certain things and enable to cater it to other people. With the help of an assistance an
individual may take better decision to choice something which they may utilize currently and in
the future that is also essential and beneficial too.
The best way to offer or provide prompt services to consumers is to be friendly with them
and create comfortable environment which allow them to feel relax and then start
communication that is the main element of excellent services. Before communicating with them
an individual may get them relax. They may take initiative to give a small smile that affect
consumer mind. Give them respect, understand their issues or anything what a buyer said, which
help to retain each with current services.
Mortgage broker may attempt to establish and maintain rapport with target market or
segment in effective manner which enable them to keep customer with them for longer. They
may utilize effective and beneficial approaches to do in term of talking about their interests, ask
about their work, share useful data, ask them for suggestions or appropriate directions and take
action to build rapport. Honesty is the best approach in recent time that mortgage broker may
provide to customers that give them unexpected satisfaction and become a loyal consumer.
Service provide may focus on do not making any kind of mistakes, when they do so then
emergent action may require to solve a complaint from customer’s side. Mortgage broker may
take decision to find out the reason behind complaint or issue that affect customer satisfaction
and then use effective method to solve it as faster as possible. Without understanding the reason
or identifying factor, it is impossible to deal with any matter or circumstance.
Providing assistance when there is specific need is essential in order to deal with customer’s
problems. It is one of the responsibilities of broker to identifying prevailing issues in order to
give emphasis on getting suitable actions in turn better client experience can be providing. This
is crucial determinant of success as customers largely admire services of that mortgage broker
who proactively response to challenges occurring in path of clients. Cross selling is one of the
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most strategic marketing approaches that allows broker to offer various forms of financial
products in effective manner. Broker should pay attention on customers need to derive desirable
outcome of applied technique. In order to be successful broker in industry most important
component that requires focus is always seeking to make improvement. The best method for
identifying lacking areas in offering methods is establishing feedback mechanism in order to
permit clients to share their experience (Mennen, 2018). Having ability to make modification in
order to give better customer service it is significant step which attracts clients through making
perception of that broker is concern and utilizing full potential to improve results.
Seeking for customer satisfaction helps in analysing performance so that level of success
in industry can be evaluated. Feedback mechanism play role in getting information regarding
client’s satisfaction so that appropriate course of action can be taken to increase in positive
direction. Making improvements in identified lacking parts that is creating dissatisfaction can
enable to broker to recognise opportunity to grow with providing suitable service according to
need of customers. In addition to this, it helps in utilizing information of feedback to make
significant change in pattern of offering services.
QUESTION- 6
Recommendations to improve service delivery to prospective customers
There can be some recommendations for the improvement of the service delivery to the
prospective customers which are:-
 There must be an efficient system of communication between the broker and the client
and all the necessary information must be informed so that the trust factor can be
developed.
 Special services and the discount offers must be provided to the customer in order to
retain them for long and derive value for the amount paid.
 Educate the customers nad offer them with the basic knowledge which could be helpful
and shall contribute in enhancing their overall experience with the broker.
QUESTION- 7
Three common types of objections that are handled by the mortgage broker
The most common types of the objections that are handled by the broker as posed by the
clients are:-
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 It can be related to the price, cost, budget and the return on the investments that are made
by the client. They require the various justifications and also that their expectations must
be fulfilled in this aspect (Shater, Hatta and Kamis, 2017).
 It can be associated with the quality of the services that are provided to the clients. This
can be in relation to the documentation, responsiveness of the doubt etc.
 The trust/ relationship and the networking, gaps in the communication, and they are also
associated with the legitimacy and the credibility of the broker.
QUESTION- 8
Four main types of personality that the mortgage broker has to deal
The four main personality traits of the clients that the mortgage broker has to deal with
are:- Dominant- They are the ones who make their decisions on their own and do not muck
around much and make up their mind very quickly. This shall help the brokers as dealing
with them is easy not requiring much details. Influencing- They can be the ones who are highly talkative in nature and this is the
reason that they seek the complete information and each and every details so it becomes
harder for the broker to bring on track and focus. Supportive- They are the good type of people who are highly supportive in nature and
they don't hurt the other person's feelings. This helps the broker in the easiness and
convenience in convincing the client as they don't possess much knowledge.
 Controlling- They keep the whole situation under their control and in that case they shall
be ensuring that they know minute details and before that they don't proceed. In this case
the broker has to stay vigilant in the proceeds as they shall be maintaining each required
document and in any issue shall be able to retrieve themselves.
QUESTION- 9
Five point plan to successfully establish networking
Five point plans can be adopted by the company to establish networking:- List your existing network- This is the process of compiling the list of the people you
know and whom you have ever met. This is the exiting network and identify the means of
contact like phone, mails and letters.
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 Develop a “hit list”- Create a list of the selected people who are ones who can potentially
benefit the company in the future times. They remain the major priority for the business. Identify networking opportunities- The people in the hit list shall be contacted through
various means like the social groups, sports club, church groups, ethnic groups etc. Attend trail meeting and network functions- Attend the various meetings and try to
introduce yourself for building the future possible relationships.
 Commit to regular attendance- When the fruitful relations are established, then the
officials shall have to be committed and regular in attendance.
QUESTION- 10
Four different sectors of the financial services industry and their interrelation
The four different sectors in the financial services industry are:-
1) Lenders- Banks, Non-banking financial institutions, credit unions, private finance and the
mortgage managers.
2) Mortgage Brokers- Independent, employed, aggregators etc.
3) Real Estate- Agents, franchisers and the various websites
4) Support industries- Valuation companies
All these financial services in the industry stands inter-related to one another and are
functioned in association with each other. For example in case of the above 4 financial services it
can be analysed that firstly the mortgage brokers shall be acting as the intermediary between the
mortgage borrowers and lenders (Pearson, 2017). This connection that is established by them
shall be used by the lender to provide the loans. These loans can be used in the real estate sector
to purchase the property either for residential or commercial purposes. And finally the valuation
companies are used while mortgaging the assets as a security for the loans.
QUESTION- 11
Five things to make the business environmentally sustainable
There can be various measures that can be applied by the business in order to create or
build environmental sustainability and also do the friendly practices for the attainment of the
corporate social responsibility. These practices can be:-
 One of the most essential policies could be to use the renewable sources of energy like
installing the solar panels or usage of hydroelectricity etc. It can also be undertaken by
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the means of applying the practices that are fuel efficient in nature and consumes lesser
energy.
 The other significant practice that can be adopted in the business is the 4R policy which
is reduce, reuse, recycle, recover of the business resources that are acquired from the non-
renewable sources or are creating the extensive waste in the environment. This can lead
to environmental protection as well as sustainable development.
 Another major practice can be associated with the treatment and disposal of waste
generated in the company. A structured and efficient programme must be developed
which can reduce the creation of waste and also treat the harmful effluents that can
released in the environment.
 It can be strategically planned by the company that they shall be maintaining the clean
and green surroundings in the company. This can be effectively undertaken by
plantations, cleaning the society and placing the dustbins etc.
 The other contribution by the business can be that they can form the strategic partnerships
and collaborations with companies and also implement the corporate social responsibility
norms on them. This is a way to organize sustainable partnerships.
QUESTION- 12
10 documents required for an ACL application
These are the 10 key policies and the documents that are required in order to comply with
ASIC's general conduct obligations and for the ACL application to be complete in all aspects:-
1) Compliance Plan- This is the structured document for the system applied to comply with the
rules and regulations of the businesses. The policies are designed in accordance with the
Australian Standards.
2) Risk Management System- This is the structured document enlisting the risks are faced and
insights into the risks that may be faced. Its completion is the value addition for the business.
3) Financial Resources Policy- It involves the financial planning for the adequate resources in
the business and proper cash flow forecasting to meet the obligations of the licensee.
4) Human Resources Policy- This document is in relation to the human resource need
forecasting and the prospective obligations of the licensee.
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