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Going digital: moving to a paperless office

At the ExpoMart Theatrette, Shayne Betreen challenged the audience to consider a paperless office. Removing notepads, post it notes, folders and files - to go purely digital. At first this might be a terrifying thought, but as Shayne outlined the business benefits of this evolution and explained how to reach this goal, the idea seemed more plausible, and dare we say, attractive.

It sounds like a daunting task - how do you migrate to digital? Shayne covered a few options that make it easy.

Google Apps for Business Google now have available a whoole range of cloud based business tools which you can access online from anywhere in the world. Secure and password protected, not only is your data easy and convenient to access, it's also backed up and hosted online - avoiding any network nightmares.

Google's services include:

Email

Contact Lists

Calendars

Drive - store and share files with other users

Docs - create and store documents online

Sheets - excel spreadsheet management made faster

Slides - allows you to create presentations collaboratively

Evernote Hello A truly useful piece of technology, Evernote Hello allows you to capture the contact details of a new connection and retrive a whole host of online data about them, allowing you to connect on many platforms.

Features:

Scan your new contact's business card and store on your phone (or enter manually)

Evernote then pulls in data for that person from social media sites such as Facebook and Linkedin

Easily create meetings with multiple contacts

Create a contact group using Evernote connect using audio tones

Build a history with your contact on their Evernote Hello profile

Watch this handy intro video here

  SmartPen  A writing tool that revolutionises note taking! How do you digitise handwriten notes? SmartPen! This handy gadgets features include:

Synchronises what you write on paper with the SmartPen and what is said

This information is stored digitially in the cloud

They are searchable and shareable

Connects your notes to a variety of applications

Combine with Google Apps for business to socialise your notes with a wider team

Learn more about SmartPen in this short video

Shayne Betreen is founder of Broker Hub, a place dedicated to tools, tips and resources for Australian mortgage brokers

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Overheard at the MFAA 2013 Convention

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The MFAA Masquerade Gala Dinner, with entertainment from Jessica Mauboy

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Leadership in the New Century: John Howard

On the final day of the MFAA 2013 National Convention, former PM John Howard addressed a full house at the Sydney Convention Centre.

Mr Howard shared his view on leadership and how this has changed with the shifting landscape we find ourselves in. To be a good leader, he believes you must always have the following qualities:

Have a well defined set of values. If you don’t believe in anything or understand why you believe in certain things, you cannot be an effective leader

Be a good listener, no matter what industry you are in

Know your audience

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We're out of the woods

Today, Andrew Inwood tells us that broker affection is on the up; RPData's Tim Lawless insists that we're out of the woods and that home values and rental yields are looking healthy; and Rachel Botsman talks about the 'sharing economy' in a way that makes me immediately want to put more love into building my online reputation than my credit rating.

Let's go back to Andrew. He says it's not so much about likeability anymore as it is about information - think of it as educating your client. YOU hold all the vital information your clients needs, therefore YOU are best-placed to guide them.

Tim's obvious love of Brisbane isn't what makes it perform so well - it's based on fact. The combined capital city index is showing a clear recovery trend, plus, he also sees consumers as much more optimistic and open to spending. 

Rachel made audience members perk up with her figures on peer-to-peer lending (doubling YOY to reach $16 billion by 2015). And according to her research of this 'social lending' space, those involved say it makes banking human again.

What this all aligns is that fact the we're on our way up. And as John Mohnacheff said to me at Liberty's cafe (fantastic coffee!), let's grab that opportunity with both hands and cross-sell the hell out of it.

Ali Klaver, Editor of the MFAA's Mortgage & Finance Brief

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Punching Above Your Marketing Weight: Tim Reid

According to Tim, there’s never been a better time to market a small business. And the key to making the most of that opportunity is content marketing, otherwise known as ‘the new marketing black’. It was social media last year.

5 marketing wake-up calls

Marketing is the quickest way to a sale. It’s what you do when you can’t go see someone. It’s more of a marathon than a sprint, so the sales and leads sometimes come months later, not days later. A full page ad in the newspaper can be a big hit, but it will be gone tomorrow.

‘We’re so over it.’ Have that mindset to ensure your message is interesting and stands out.

You’re brand or you’re bland. Pull people towards you (rather than push) with a concept that’s unique. Stand for something – be irresistible. What’s your story, why do you do what you do? Tell people. Identify a narrow niche that’s a mile deep.

Message first, medium second.

Touchpoints – is there consistency among them in your business?

Tim introduced the idea of assembling a virtual marketing team of experts, to tackle the tasks you don’t have the time or the expertise for. Tim’s virtual marketing team consists of a copywriter, designer, virtual assistant, web developer, transcribe and audio editor – some of whom are based overseas. Some helpful sources: 99 designs and fiverr websites.

With content marketing it’s essential to decide on your editorial mission so your message is clear, and integrate offline with online.

Some Video Marketing Ideas

Produce a video business card.

Also video follow-up after client meetings are a great idea to go through a proposal/contract. Engaging and shows you care.

Video saying thank you or FAQs to clients.

There are a range of affordable software products that can help you with this: Camtasia, Screenflow and Photobooth. Upload videos to YouTube to increase your online presence and SEO.

Blogging Google likes websites that are updated often. You can blog about news headlines, client experiences, successes, FAQs, observations or share a list.

Podcasting You can have your own show! Tim produced the number one marketing show in the country on iTunes, for around $15.

Social media

Just people having conversations online

Social media is very hungry, not the silver bullet

It’s not going away, don’t lose interest and listen first (cheapest market research you can do)

Be clear on what role it plays in your marketing mix

Get actively involved in one

Make it a call to action

Rinse & repeat

In the marketing mix social media is like the race horse whereas your website is like the race course. Your website is where the vast majority of your spend should go.

Tim Reid is a small business marketing expert, and founder of the Small Business Big Marketing show

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Rachel Botsman & The Sharing Economy

The Sharing Economy is the result of the reinvention of traditional market behaviours. Rachel explains how the future is asset light and that social trust is the glue that is transforming the way we think about supply and demand and transactions.

Airbnb case study: Rachel illustrates how Airbnb creates a market that never had a marketplace before. The site allows hosts to rent a room or house to people wishing to stay in that location. The appeal is widespread however – you can event rent an igloo, a treehouse or a luxury tepee.

The dynamic on airbnb is very different to other social trading sites. The site facilitates online connections which enable offline experiences – amount of trust that is digitally created is much higher. Trust between strangers is the essential link.

Sharing is not just a Gen Y activity, the highest demographic of this community is over 40yrs old.

The main point of difference is not about accommodation, its about the community and their shared experiences. It facilitates connections, and engagement with a community in a way that is meaningful. For example, 56% of hosts use money as critical payment towards mortgage or rent.

The Sharing Economy: Key Themes

Idling capacity: Untapped social, economic and environmental value of underutilised assets

For the first time technology allows us to take that capacity and make it financially liquid. We are empowered to monetised assets like never before

Access over ownership:

Music: Physical ownership of records and CD’s is moving to digital downloads

Video: Physical ownership of DVD’s is moving towards on-demand access (youtube, netflicks etc)

Books: Physical ownership of books is moving to digital downloads read on devices such as the kindle, nook or chegg.com

There is a distinct consumer benefit here as these services provide people with more convenience and choice, giving them access whenever they want it.

There are three types of reaction to such a a dramatic shift:

Ostrich: Sticking their head in the sand, hoping it will go away

Fight: Try to bring new ideas down with legal action

Pioneer: Embrace the change as an opportunity

Ford are a good example of a large organisation that is adopting the pioneer response to this shift. They believe that the future is not about cars, it’s about providing mobility services, in whatever form that demand will take in the future.

Key takeaway: Social trust is a significant factor in broker relationships with clients

Peer-to-peer lending (in summary)

Growth: Global peer-to-peer loans in 2012 estimated to exceed USD$2billion

Market Size: Doubling year on year. Expected to reach $16 billion by 2015

Fact: Default rate is <0.9%. 8.1% average rate of saving interest on a loan 

Key take away: Power is shifting away from traditional institutions and moving towards individuals and communities.

Possible future: Peer-to-peer lenders like zopa and funding circle could replace high street banks.

Key benefits:

Fast online approval process. The borrower is given detailed information on why they are turned down, so they can act on this and resolve the issue.

Lowers interest rate for borrowers

Higher saving rates for lenders

Making banking more human again

Industries being humanised

Consumers are driven by social, personal experiences.

We are leaving reputational trails – every activity we have online, we leave a trail of how we can be trusted (aggregated to create reputational capital).

Rachel's projection: by the end of the 21st century, our reputational capital will be more valuable than our credit history.

In summary:

20th Century: Hyper Consumption Credit + advertising + individual ownership

21st Century: Collaborative Consumption Reputation + community + shared access

Rachel Botsman is a social innovator who writes, consults and speaks on the power of collaboration and sharing through network technologies. 

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Simple Changes to Help You Work Smarter, Live Better: Cyril Peupion

Cyril’s presentation was a great wake-up call to anyone who wants to work smarter, not harder. To provide some context, Cyril presented some interesting statistics around workplace productivity:

2.1 hours per day consumed by interruptions

70% of cc emails have no relevance for receivers

34% of workers check emails constantly

6 weeks per year looking for info we already have

60% of time is spent on activities that have no long-term impact

Most people have never been taught about the fundamentals of time management.

There is a gap between strategy and day to day activities. And we wonder why 66% of corporate strategy is never executed!

An interruption comes from someone else. A distraction comes from you getting side-tracked. We are likely to be interrupted or distracted every 3 minutes.

How to deal with interruptions

decide on importance

batch communications; can it wait until a weekly meeting? If so write it down and save it for later

non-interrupt time: book meeting with yourself to work on particular tasks

turn off mobile/emails etc

be aware and respectful

Distractions – clear your mind

Write it down

Use collection tools

Focus on one task at a time

Clean desk policy

Multitasking is a waste of time, because the quality of your work becomes too diminished.

Be clear on what you want to achieve, write it down, and review/revisit on a daily basis – think quarterly

Make goals and high impact activities a must, not something you ‘don’t have time’ for – plan weekly…daily is too reactive

Take massive actions  - act daily

What are the 2-3 projects/activities that if you did extremely well and did nothing else over the next 3 months would have a significant impact long term on your performance and business performance, and personal life?

If something is going to take you more than 5 minutes, schedule time in for it.

Every Friday review and plan the following week, and don’t forget to schedule unplanned/reactive time.

Cyril Peupion is a serial entrepreneur and managing partner of Primary Asset Consulting

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George Megalogenis addresses the economic challenges ahead at the MFAA 2013 National Convention

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Great to see some creative concepts in the ExpoMart! The Connective Team are looking great on their Robin Hood themed stand

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Working on the business, not in the business: Jana Krizova Hocken

Jana started the free ExpoMart theatrette session exploring some of the factors that get in the way of working on your business; such as not being able to delegate, not enough processes/systems, and lack of team ability.

Some great quotes that Jana found relevant in light of the presentation topic:

‘If you really want something you’ll find a way, otherwise you’ll find an excuse.’

‘If you don’t drive your business, you will be driven out of business.’

How to get time to step out of your business:

Document processes – don’t seek perfection, just get started. Small steps are better than nothing. You can’t let go of your business if all the knowledge is in your head.

Empower your team

Coach – teaching those around you to think for themselves

Standardise –  to ensure consistency in customer service delivery

Develop processes and systems

Visualise

Define roles and responsibilities

Develop organisational structure

Staff development plans

Succession planning

Delegate

Jana demonstrated a number of business improvement tools such as a skills matrix and intuitive CRMs.

What do I do to work ON the business?

KPIs

Culture and values

Vision and purpose

Long, medium and short term strategies and goals

Growth

Strategic partnerships and relationships

Customer experience

People development

Strategic projects

Marketing

Blue sky thinking

Jana’s session was targeted towards brokers, and highly relevant as many finance professionals find it difficult to make the time to work on their business. Jana illustrated her session with a personal story of how she prepared a business proposal for Richard Branson and orchestrated the opportunity to give this to him in person.

Jana Krizova Hocken is the Managing Director of small business specialists Improve8

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Bill Bachrach: The Art of Building High-Trust Client Relationships

Bill explored the concept of trust with Convention attendees in his plenary session, with some thought-provoking ideas and perspective.

He put forward that almost everyone has some untapped capacity, to which the majority of the room seemed to agree by show of hands.

Set a high standard, and work on things that are within your control To fulfil that potential, Bill put forward that credit advisers should set their standard higher than all the regulators and legislators – because they’re only set for the lowest common denominator. What kind of customer would want to hear that their credit adviser is striving to meet the minimum government requirement?

Bill also said ‘The more uncertain the environment, the greater the opportunity for you to provide great advice. Be in control of your own business whatever the macro situation might be. Spend less time on the things outside of your control.’

Increase your 'trust dial' On the subject of trust, Bill suggested that trust is not a function of time, it’s a function of events. As a credit adviser, trust is crucial – not just with clients, but with employees, real estate agents, banks and other stakeholders. The ‘trust dial’ has to be even higher for people to refer others to you.

How can credit advisers increase their trust with stakeholders? Trusted advisers tell the truth, even if it means risking the relationship. They also put the needs of clients ahead of their own. There is more responsibility associated with term ‘credit/trusted adviser’ as opposed to ‘mortgage broker’.

To demonstrate authenticity as a credit adviser, you need to have your own financial house in order. It’s also important to know the right questions to ask and when, to know how to listen with empathy, and to be able to articulate your ideas with conviction.

Bill recommended recording meetings and conversations to assess your ability as a communicator.

Trust is a by-product of high-level professionalism; it shouldn’t be a goal in itself. People trust you, and by extension they trust the people you do business with. You build trust by inspiring people with positive emotions not with fear or greed.

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Phil Naylor says Australian broker market share is among the best in the world, and will keep improving

During his opening address at convention today, MFAA CEO Phil Naylor said the Australian broker market share is sitting at around 46% - rather than the previously reported figure of 41%. This puts us ahead of the UK and the US; among the best in the world.

Giving an update on the MFAA’s activities over the last 12 months, Phil said that the association has largely received favourable coverage in the media – there have been 365 mentions in the last year of which 82% has been positive.

Professional standards Members are seeking out professional development; with over 10,000 course registrations over the last year. Further illustrating the MFAA’s commitment to upholding professional standards, 62 disciplinary matters have been investigated over the last 12 months – which led to 11 members being expelled or suspended, and a number of other corrective actions taken.

Lobbying The MFAA has also continued its lobbying activity on pertinent issues like small business finance, private and investment lending, point of sale exemptions, loan variations and verification of ID.

Ahead of the federal election in September, the MFAA is in discussions with a number of political parties on key issues affecting the industry including legislation and a potential full inquiry into the finance industry.

Consumer awareness A major ongoing priority for the MFAA is promoting consumer awareness of MFAA Credit Advisers. Recent online campaigns have achieved success due to the fact that they are measurable, flexible and cost-effective. A new campaign was favourably received by the MFAA Board at their meeting today – which will revolve around the concept of ‘life changing conversations’. This will be launched towards the second half of this year – and will require the support of members to be fully effective. Attracting new industry entrants Phil admitted that the ageing workforce of the industry is a problem. The average age of existing MFAA members is 43, and for new MFAA members the average age is 39. The MFAA will have a presence at career expos and university shows in the coming months, and is also working with the government on adapting existing traineeships for broking businesses.

Phil Naylor is the CEO of the MFAA

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The Modern Mortgage Broker - Embracing the Mobile Revolution

Adam King kick started the MFAA Convention Theatrette sessions yesterday with a bold statement: 

"The web is dead…as we know it"

The following statistics illustrate why mobile apps are becoming a hot topic for business growth and connecting with your clients in a meaningful way.

91% of smartphone users carry their phone or have it within arms reach 24/7

88% take action within 24 hours

84% of businesses that embrace mobile as a client communication tool see an increase in revenue

  Why Apps?

To date, we have seen mobile use is growing three times the rate of the internet 

By not embracing mobile, it is projected that business can expect to lose up to 50% of their income streams within 2 years

Apps are the most common way businesses have a presence on mobile. Mobile apps are how smartphone users navigate their phone's functionality and ultimately, they define how your smartphone looks and is used.

  How are Apps used?

Apps are 100% opt in, unlike any other medium

Oonce installed on the users smartphone, they carry your brand with them 24/7

Push notifications have 99% open rate, compared to email marketing, 25%-30% open rates

There are 56bn downloads predicted for 2013

App Development - Android v Apple There is a common misconception that most smartphone users own an Apple device, and therefore the focus for development is on iPhone Apps.

Globally, 58% of smartphone users hold an Android device (including Samsung) and only 33% own an Apple device.

Locally in Australia, 62.2% own an android device, and 29.4% own an Apple device.

Statistically, you are more likely to see a higher return on investment and user engagement with an app developed for Andriod rather than Apple. 

Adam King is the founder of MiBiz Apps, developers of customised smartphone apps for Mortgage Brokers. 

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"People get used to sailing in a terrible storm. Homebuyers are starting to adapt to the volatility of our conditions"

Andrew Inwood - CBA MFAA Home Finance Index May 2013

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Cosmopolitan anyone?

There is no doubt that brokers are in the business of changing lives. And while they're busy facilitating that change in others, they're also 'Challenging Change' at the MFAA 2013 National Convention.

The stand-out statistic that comes to mind from today's opening sessions is MFAA CEO Phil Naylor's figure on broker market share - now at 46%. That beats New Zealand and Canada's 25-30%, and the US's mid-30%. 

And while we pat ourselves on the back, this figure brings into sharp relief what writer, commentator and former The Australian journalist, George Megalogenis, describes as a fundamental shift in the way we operate - and a shift in Australia's very make-up. 

According to George, we're waiting for the dust to settle on the 'new normal'. Will we consume news only on a handheld device and apply for loans using an iPad, for example? Will Australia's increasingly Asian-centric population drive brokers to uncover a new wave of apartment-loving first home buyers? 

We're now looking at 27% of foreign-born Australians who are dictating the shift from the way we've lived, worked and consumed for the past 50 years. This cosmopolitan Australia will either embrace change with the help of a strong, leading government, or eventually limp there in 5-10 years. According to George, it hinges on the outcome in September - but then again, what doesn't?

The opportunities for brokers are endless, and the secrets to success are at the Convention.

Ali Klaver, Editor of the MFAA's Mortgage & Finance Brief

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Seminar: SMSFs & Limited Recourse Borrowing Arrangements

We’ve all read and heard much about self managed super funds and limited recourse borrowing arrangements in recent months, but what does it mean for brokers?

In this seminar session at the MFAA Convention, Peter Dunworth addresses this debate and analyses the path of two brokers; one disinterested in the space and the potential business growth and the other, a proactive broker, who is keen to understand more and maximise new business opportunities.

There are increasing amounts of clients asking, “is an SMSF right for me?” and looking to their broker for guidance.

Peter argues that there is a huge opportunity for proactive brokers to lead the way in offering their clients a project management service in SMSF lending. The following statistics are indicative of this opportunity:

There are currently $500bn in SMSFs. This is expected to triple to $1.5 trillion in the next 15 -20 years

On average, there are 3,000 funds set up per month on average, which is projected to grow to 12,000-15,000 per month

LRBAs require lowest balance to make SMSF lending viable

Projected to have 10,000 LRBAs per month within the next 5 years

In his seminar today, Peter took a closer look at the pathways of these two brokers.

5 things a broker disinterested in the SMSF space doesn’t do:

1. Actively market SMSF lending to their clients. They don’t understand this space well enough to be able to introduce this option to them.

2. Have a checklist to ensure smooth processes

3. Project manage the entire LRBA process

4. Add value to their client

5. Create ways to make it easier, faster, cheaper

Outcomes for this broker:

Uncertainty in the process

Poor remuneration

Questionable client experience

Low future referrals

Reinforcement of negative outlooks for SMSF lending

5 things a proactive broker does do:

Educates themselves in the SMSF/LRBA space - Understand the role they need to play in the LRBA process - Identify the clients that could benefit from hearing more about this type of lending - Creates a strategic plan to integrate LRBA into their business

Establishes a strong project management team and understands why it is essential to the success of effective LRBA management

Forms partnerships with a solicitor, accountant and financial planner to help them with all parts of the process

Has process in place to review the quality of their team

Has a checklist of specific processes to manage their client and team.

Outcomes for this broker include:

Positions broker as the first point of contact in the whole LRBA project

Project manage effectively

Enables the broker to be in control of the process and take ownership to ensure settlement is met.  

Adding significant and tangible value to the process, more than any other professional, delivering a better client experience

The bad news for brokers: Offering an SMSF lending service to your clients isn’t quite as simple as writing two loans in one client meeting. Entering into this space does mean more work and effort in the initial stages. However, it does give you a reason to connect with your client post-settlement and potential to create a client for life. 

The good news: By investing time and effort in setting up new processes and project management tools, Brokers can save time in the future when project managing LRBA’s and have the business structure to make the most of new business opportunities.

By embracing the opportunities that lie in the SMSF/LRBA space, a broker;

Can significantly increase their value offering to their client

Creates referral opportunities

Creates ‘trusted advisor’ status in the SMSF space

Is better placed to educate clients, enabling them to understand the value they can bring across the lifetime of their loans

Avoids competition from other brokers, lenders and advisers

Increases the longevity of that client (LRBAs occur every 5-10 years)

Adds value to the client through saving them tens of thousands of dollars with a debt reduction strategy

Client puts their broker as the #1 trusted advisor in this space

Opportunities

Peter notes that by including SMSF lending in your service offering, you could potentially see a 40% upswing in your business

To provide this service, you will need to build process that will be ultimately become a profitable revenue stream for your business

It also allows you to form a mutually benefit relationship with your clients and all other advisors in your extended team

Next steps

Peter acknowledges that there is a level of work required. You need ensure your knowledge matches and betters that of all other professionals in order to position yourself as the first point of contact in the LRBA process. Therefore, undertaking some form of education is essential to establish yourself as a trusted advisor to your clients.

Peter Dunworth is the founder of Super Fund Pro.

Read more information on the Limited Recourse Borrowing Arrangement program.