We are lucky enough to work with many finance brokers across Australia, including reviewing their operational set-ups, systems and credit assistance procedures. There are a few commonalities for the most successful brokers and one that really jumps out to us is ‘note taking’.
The best finance brokers include comprehensive notes within their client loan files.
Whether the loan is a simple one, or for a sub-prime client that is difficult to ‘get set’; these top brokers ensure the process they undertake to arrange a loan is clearly demonstrated.
There are numerous benefits in doing this and the ‘sharp operators’ understand these as follows:
- Structured file notes which explain the client discovery process, illustrate the inquiries made and detail the verification steps taken to assess loan suitability help to comply with ASIC’s Responsible Lending guidelines;
- Detailed file notes provide evidence of a thorough and repetitious process which lenders and the regulator value; and
- Clearly identified and easily accessed file notes help with future client engagement.
From a compliance perspective, file notes are particularly important when the question of loan suitability is potentially questioned in the future and they can also be used to assist should a future customer complaint arise.
Given the countless client conversations had, no broker could possibly recall all details per each interaction. Help yourself by taking notes, label them clearly and even better; use a system that enables you to do this in a convenient manner.
As always, we’d love to have a chat about this and any other business matter you’re considering. Email us: firstname.lastname@example.org.