My working life has been spent in the finance industry. Over the past 32 years I’ve worked in a broad variety of roles, and seen significant change in the way financial products and services are marketed and delivered. I’ve been employed in management roles with a range of banks, and I’ve also worked as a self-employed mortgage broker.
Primarily through advancements in the use of technology, the delivery of financial products and services has changed significantly during this time – However the one constant with the delivery of financial products and services has been, and will always be that they are delivered with a view to maximising the profit for the provider of the product or service.
To illustrate my point I will use obtaining a home loan as an example. Whether you deal directly with your lender or you choose to use the services of a broker, the product being provided to you will generate a profit margin for the lender. Furthermore, the remuneration of the person providing your advice is often tied directly to the sale of the product being provided to you. Most bankers now days will be set with sales targets they must achieve, and brokers are only paid based on what business they introduce to lenders.
As the consumer you are not necessarily getting a bad deal – but are you getting the deal that is best for you? Do you even know how to recognise what will suit you best, and if so how to ask?
Let me be very clear here – I’m not suggesting that bankers and/or brokers are ripping borrowers off. I’ve sat in the banker and broker chair for many years myself. I’m simply pointing out that I think things can be done better from a transparency point of view.
One of my primary motivations for starting Empower Money Management was that I thought that consumers could benefit from the provision of better education with regard to managing their own money, and making best use of their own banking facilities and arrangements.
The commercial reality of the provision of banking products and services is that the provider is making money out of the product/service being provided to you. Philosophically I have absolutely no problem with that; that is the nature of the capitalist system that we live in.
What I think can change significantly for the better is the understanding that people have of the financial products and services they use.
How can you be sure that you are getting the deal that suits you best if the primary motivation of the provider is what profit margin they generate from the transaction, and how many additional products and services they can sell to you?
At Empower Money Management I DO NOT SELL products and services. I am not remunerated by selling an additional financial product or service you didn’t ask for, don’t need or don’t understand.
As a consequence of NOT being remunerated based on the sale of a product or service I can provide a genuinely unbiased comparison service for my clients, where I can help you to understand the range of benefits a product or service may offer. Through education and understanding you are then in a much better position to be able to make informed choices with regard to the purchase of a financial product or service.
I provide fee-for-service coaching and education on the better use and understanding of your own money, including coaching that covers how to ask your banker or broker for a better deal on your existing or proposed facilities.
I am happy to sit down with my clients and help you to analyse where you can make savings on your existing arrangements, and empower you with the skills to make positive money management decisions a part of your day to day life.
To make a positive difference for yourself make an appointment with Leigh at Empower Money Management.
M: 0407 439 827