FNSSAM403 Certificate IV Finance: Identifying Cross-Selling Products

This document contains the solved assessment for FNSSAM403, a unit within the FNS40815 Certificate IV in Finance and Mortgage Broking. The assessment includes two tasks: short answer questions and a written test, focusing on identifying opportunities for cross-selling products and services. The short answer questions cover topics such as prospecting methods, building client relationships, understanding client needs, LVR calculations, and addressing client hesitations. The solution provides detailed answers and explanations related to these topics, demonstrating an understanding of the role and responsibilities of a credit advisor, the importance of data collection, and effective communication techniques in the finance industry. The assessment uses a case study involving a client named Mary Jane to illustrate practical application of the concepts discussed. The document is available on Desklib, a platform offering study tools and resources for students.

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Student details
Course name FNS40815 Certificate IV in Finance & Mortgage Broking
Assessment name FNSSAM403 Assessment
Student name
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☐ Task 1 – Short Answer
☐ Task 2 – Written Test
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Assessment V3.1 A1

FNSSAM403 FMB Assessment
CREDIT TRANSFER
You may be able to claim credit transfer for a unit/s of competency that you
have previously completed with AAMC Training or another RTO. If you have
been awarded a record of result or statement of attainment for any of the
units detailed below then please go to the Credit Transfer tab in your Learning
Centre and follow the prompts.
This assessment relates to the following units of competency:
 FNSSAM403 – Identify opportunities for cross-selling products and services
Please refer to AAMC Training’s full Recognition Policy for further
details.
Task 1 – Short Answer
In order to successfully complete some of the tasks in this assessment you
should have access to the following documents. These are available in the AAMC
Training Useful Resources or you may wish to find your own/use your company
documents.
 Credit Guide – important facts about the business and products you
provide
 Adviser Profile – this may be included in your credit guide and could be
simply your licence number as the services you provide are one in the same
as your licensee
 Client Needs Review – for client data gathering
 Preliminary Assessment
Questions
1. What do you believe to be three good prospecting methods and why?
1 Warm
Calling
It helps in the right
decision-making of
the target accounts
by gaining attention
for saying
something
compelling.
2 Referrals It is simple
prospecting through
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other people which
know and
understand the
business partners,
clients and
contracts.
3 Content
Marketing
It is the art of
communicating with
the customers and
prospects without
selling.
2. In your own opinion, what are some areas which are important to say
about yourself and your business when creating a Facebook or LinkedIn
profile? Why would correct and professional information be important to your
organisation?
On such platforms name of the individual and its business is the most
essential information to be provided. Other information such as the time of
beginning the business and its location can be mentioned as well. Correct and
professional information about the organization will influence the candidates
which are looking for job get attracted towards working for the organization.
3. What is cold calling? Is cold calling an effective prospecting method?
Explain your answer.
Cold calling is the technique in which the salesperson contacts the
individual which have not shown any previous interest in the products and
services which were offered to him. Thus, with the help of cold calling
solicitation of the phone and telemarketing can be done which provides
involvement in the person's visiting and also door to door sale (Olson and et.al.,
2021). This is the reason why it is considered to be an effective method of
prospecting.
4. How would you build a relationship with a client through cold calling?
For building relationship via cold calling it is essential for the individuals to
make sure that they provide the finest solutions to the most difficult of
problems faced by the prospects. It is important to focus on the needs of the
people. The outcome of the cold call is needed to be decided before making
the cold call. The human connections should be made towards the journey for
ensuring the encounter of new and interesting people. Speaking graciously
Assessment V3.1 A3

and naturally is very important for the new acquaintance. It important for
treat the one which are being called, its not important how many customers
are called unless the ones which are called are treated properly. Allowing the
conversation to evolve very naturally.
5. In your opinion, why would the following areas of information (found in the
Credit Guide) be important for a new client to understand? How could this
information protect all parties?
 your role and responsibility as Credit Advisor
 the role of the organisation
 the identity of and information about the Credit Licence holder
 the range of services provided
 all costs, fees, commissions etc. associated with the transaction
 the procedures for handling complaints and disputes.
Answering opinions
 Role and responsibility of the credit advisor in the credit guide helps
them to understand at what time does the credit advisor need to
explain what the credit activities are needed to engaged.
 In the credit guide the summary towards the organizations goals and
standards are mentioned.
 It signifies that the license holders has the right to achieve credit
(Heller and et.al., 2020).
 This guide provides information about the range of financial solutions
given to the consumers which also include loans, credit cards, goods
and services.
 The credit guide provides information about, fees payable by you to the
third parties, fees payable by you to the licensee and fees paid by the
licensee to the third parties
6. Why do you believe is it important to encourage prospective clients to
express their needs and goals when completing a data collection?
Engaging with the clients is important for the prospectives because of the
following reasons,
 It provides opportunities to get to know the other clients even better as
an individual.
 Establishment of the areas of the potential risk prior to the call can be
effective n the organization.
 Ascertaining the needs and the preferences of the clients is very
important for the prospectives.
 Acknowledging the culture, religion and ethics is considered to be the
most effective way of providing the organization different values of the
organization.
 Advocating freedom towards the choice and independence should also be
very effective for communication with the prospective.
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7. Your client Mary Jane has advised that she would like to purchase a home
worth $400,000 and you have worked out associated costs of around
$30,000. She has a deposit of $150,000. She has spoken to friends and are
concerned that she may have to pay mortgage insurance which she hears can
be a very high cost.
a) Complete a quick LVR calculation and explain the outcome to the
client. Please ensure you show your workings. Information on calculating
LVR’s are found in your learning guide and via the internet.
Purchase price =$400000
Deposited amount = $150000
Therefore, the loan amount = 400000-150000 = $250,000
LVR = (250000/400000)*100 = 62.5%
b) Why is it important to respond clearly to the client in this case?
This ratio shows the relationship between the lenders and loan on the
determination of the risk taken on the secured loan.
c) What could you do to make sure the client has understood what you
have advised?
This ratio of LVR shows that the client is taking more of the taking more
risk than they should for by depositing the 150000 amount which is
required. Provide the client with a credit guide can ensure that the client
has understood what has been said.
8. Your client Mary Jane is hesitant about completing some of the information
in the client needs review. As an Adviser, you must fully complete a client
needs review for a number of reasons.
a) What is a probing question you may ask the client to determine their
resistance?
Some probing question which are needed to be asked the clients are,
 How can we help?
 Do you have a budget in mind?
 Why do you think it is the case?
Assessment V3.1 A5

b) What are two points you may highlight to the client to try and overcome
this situation in an appropriate manner?
A hesitant client can be persuaded with the help of the following,
 Realising them the fear of mission out on a great deal.
 Getting ahead of consumer questions with reviews.
9. A prospective client is hesitant to use you as their broker because they are
already a client with a competitor. What interpersonal techniques and
communication skills would you use to overcome this?
Interpersonal skills while dealing with clients can be listening skills, self-
control and positive attitude.
Communication skills while dealing with clients should be, personalized
interaction, avoiding negative phrases and use of positive language with
empathy.
10. You have now gained Mary Jane’s consent to move forward with fully
completing the fact find. She has advised that further to the basic
information provided above (in question 7), she is buying the home to live in
and is a single parent on a good income in long term employment. Mary Jane
would like to pay the home off early but would also like some spare funds for
a holiday over the next 12 months. Protection of the home and her child in
case of job loss or becoming ill is highly important.
Mary Jane would like to purchase another investment property down the
track to provide for her retirement. Prior to a marital separation, Mary Jane
and her ex husband had paid off another mortgage. Mary Jane has a clear
credit history.
The client may also like a 100% offset account as she had one in the past
and it worked well to pay the loan off quickly. Mary Jane would prefer a major
bank as she is concerned a smaller provider may not have any branches in
her area.
Whilst it would be prudent to complete a fact find under normal
circumstances, for this exercise we ask you to highlight and record some of
the client’s goals, concerns and creditworthiness (i.e. why the lender should
consider them for the loan) in the table below.
Goal Concern Creditworthiness
Purchasing the
property
For living in as a
single parent.
The loan amount
would be 250000
which can be paid by
Mary Jane in 3 years.
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Recurring Deposit Need of some spare
fund for the holiday
which needs to be
planned over the next
12 months (Gao, 2020).
12 months of time is
enough for generating
the amount required.
House insurance For the production of
the house taken on
loan
Will require the
premium to be paid of
yearly.
Life insurance In case of an
emergency in which
she became very ill.
Will require the
premium to be paid of
yearly.
Purchasing another
property
As Mary Jane has
clear credit history
she is eligible to new
loans and advances.
After the 3 years of
the loan payment of
the previous property
this loan can be
started.
11. John has asked you for some advice on buying a car for personal use worth
$40,000 over a five year loan term. You have completed his client needs
review and must now complete some research to present John with
appropriate finance options. Research and present two products that may be
appropriate for John, highlight all fees, features, repayment amount, etc. (You
can use a number of sites including rate city to complete this activity.)
1 Wisr loan with 4.74% per annum interest with a total
repayment of around $45006, with 0 ongoing fees
and secured upfront fee of $595.
2 Omm loan with 5.35% per annum interest with a
total repayment of around $45677 with 0 ongoing
fees and secured upfront fee of $ 250.
12. Using a search engine, research “Ten tips to protect your customers’
personal information”. Select one of the 10 points and in your own words
briefly describe the purpose of this step.
It is very important for being up to date with the data breach practices
going on in the world through forums, conferences, research, website and
even industrial peers. It will provide the to speed with the trends and
technologies and prevent the customer data from being breached.
13. You have completed a fact finder, costing analysis, and LVR calculation
for a client and have worked out the due to affordability issues, based on
the living expenses they have provided, the client is unable to borrow the
required loan amount. They would be able to borrow a loan amount of
Assessment V3.1 A7

$5,000 less. Referring back to your client needs review, what additional
question/s would you ask the client?
Additional question which can should be asked the clients are,
 What is the required amount money for the client?
 What are the plans of utilising the money?
 Is there anything which can be kept collateral as security for loan?
14. You have completed the product research for the client. How would you
prepare for the next contact and what would you do at that meeting?
Following are the steps which cannot be missed before the next client
meeting,
 It is important to reread the research for ensuring that each and every
detail about the information is covered.
 Establishing a main objective and goal of the meeting before going on it.
 Planning an agenda for supporting the objectives and goals.
 In case the main aim is not reachable there should be a plan B for
tackling the issue.
 Keep the follow up activities prepared.
Task 2 – Written Test
1. List six buyer motives and in your own words, analyse and discuss issues
relating to two of them.
1 Need Need is said to be the most immediate buyer
motive. Prospect having a problem which can
be solved is said to be inherited or motivated
for considering the offerings. The issues with
this motive is that not all buyers have clear
cut picture of the problems. In this motive
raising of awareness is important which is an
issue as well.
2 Acceptance Acceptance is the motive which is said to be
essential by product of the consumer fear of
missing out. It is considered when the client
get interested in buying the products and
services. Issue with this motive is to clients
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don't want to miss out on the movement. It is
a powerful motive for the salesperson for
paying off.
3 Fear
4 Health
5 Impulse
6 Pleasure
2. Using conflict resolution and persuasion techniques, write a response to the
following examples of buyer resistance:
Not interested Terminate : Thanking the client for their time and
ensuring that they think about the products you are
offering.
Investigate : Asking what other help can be done for
them for building strong relationship (Strau, 2021).
Perseverating : Confronting them whether they are sure
on their decision or can want to rethink the fear of
missing out.
Send me
some
information
Asking them what are the particular products which they
are looking for and automatically agreeing to them.
No money –
Can’t afford it
Offering them reduced solution for checking if their low
budget matches their requirement.
You’re
wasting your
time
Thank them the client for their time and move on.
3. How do you successfully undertake cold calling? Explain the process from
start to finish.
Ways of effective cold calling tips and techniques are,
 Embracing the rejection and keeping the pace normal and running too
fast is also important.
 Focusing on immediate learning and not increasing the sales
immediately is also important.
 Utilization of technology for the elimination of the tedious task.
 Should not waste anyone's time on the call including your own.
Assessment V3.1 A9

 Following prepared scripts like an actor and being confident while their
delivery.
 Finding a calling schedule which works in general.
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4. Read the following article, and answer the questions below.
Information in this article may not be based on current market
statistics and is for assessment purposes only
Why Melbourne’s properties will keep on rising
In Australia, over some 120 years or so of not quite so accurate statistics,
property prices have risen at an average compound rate of 10.4%, very
slightly ahead of England. Again, property prices have doubled every 7
years or so despite droughts, wars, changes of government, interstate
and overseas migration, interest rate movements, exchange rate
movements, changing rates of unemployment, CPI movements, etc.
Property cycles
When one takes a short-term view of property price movements, one can
get confused by apparently contradictory statistics. However, if you
understand that property prices move in 7-10 year cycles, the picture
becomes a lot clearer.
Let’s take one obvious example. The movement in NSW and Victorian
property prices tend to be counter-cyclical to Queensland prices
(especially South East Queensland). This is heavily influenced by what is
happening in the NSW & Victorian economics which encourages
migration to Queensland, and at other times in the cycle, people
returning to NSW and Victoria.
So, when Queensland prices are moving ahead strongly (because of this
additional demand from interstate migration), prices in NSW and Victoria
exhibit slower growth, and vice versa.
A study of cycles shows that the Sydney market is much more volatile
than, for example, the Melbourne market. Sydney prices rise faster but
can also experience significant falls in each cycle – Melbourne prices tend
to rise rapidly (+25%, +20%) in the first two years of an upturn and then
more moderate increases of 3-7% in the remaining years of the cycle till
growth spurts again.
Relative prices in each capital city
Over the last 100+ years in Australia, each of the six State and Territory
capitals have established a fairly stable ranking with each other in terms
of their median house and apartment prices.
Traditionally, Sydney has always been the most expensive followed by
Melbourne, Canberra, Brisbane, Perth, Adelaide, Darwin & Hobart.
Assessment V3.1 A11

Increases in prices in each of these markets, for whatever reasons
(mining booms, economic recessions, rural booms and droughts etc) can
cause some temporary shifts in the relative standing of each of these
cities. But these are normally temporary shifts and the long-term
standings re-assert themselves as the various cycles evolve.
continued on the next page
In the last 3-4 years, Perth & Darwin prices (and to a lesser extent
Adelaide and Brisbane prices) have increased dramatically due to the
boom in mining and oil company revenues and increased demand for
labour (and therefore housing) in those cities. Sydney and Melbourne
prices, while still rising, have slipped behind these other cities in terms of
relative price increases.
Basic demand & supply
The ever-increasing need for housing in Melbourne and Sydney is not
based on temporary boom factors but on underlying (substantial and
permanent) shifts in population. Each city has a strong underlying
economy, which is not dependent on one particular industry. In addition,
estimates of Melbourne’s population for 2020 is over four million people
(an approximate increase of 25% in 13 years). This is huge in terms of
population increase and the need to accommodate these extra people.
The reality is that Melbourne’s building industry cannot build more than
about 140,000 accommodation units (houses and apartments) per
annum due to shortages of qualified tradespeople of all types and
shortage of suitably zoned land and the building permit process.
Demand, on the other hand, is estimated at approximately 170,000
accommodation units per annum. Added to this, State and Federal
governments have all but completely removed themselves from supply of
affordable housing.
The inevitable consequence is that house and apartment prices will
continue to rise (quickly over the next 2-3 years and then more
moderately). And rentals, which are already moving up quickly, will
continue to rise ahead of CPI.
Relativities with other capital cities will be restored by above average
price increases in Melbourne and then Sydney.
Interest rates
The spectre of a return to 16-17% interest rates (experienced only once
in Australia’s history and then only for a few months in 1990) has loomed
large in many would-be investors’ minds. This fear is understandable but
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