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Brokers - how do you overcome cynicism around advice?

Journalist: John Fitzsimons, Freelance

ended 23. January 2024

Morning brokers

Some research last week suggested that around a quarter of people would turn down free financial advice, with reasons cited including a lack of trust and a fear of being pushed into buying something (https://www.mortgagesolutions.co.uk/news/2024/01/19/a-quarter-would-turn-down-free-financial-advice/)

We'd love to get your experiences on overcoming a potential lack of trust or cynicism among potential clients.

Have you been faced with this sort of wariness in the past?

How do you build that trust among clients? 

What mistakes have you made along the way?

And what can the financial industry do as a whole to rebuild trust, so that people who would benefit from advice actually get it?

Publishers: if you use any, or all, of the responses in this News Alert, please credit Newspage, e.g. "Speaking to the Newspage news agency, XXXX said...". For ease, all, or individual quotes, can be copied.

10 responses from the Newspage community

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Robert Timm
Managing Director at Sunland Mortgages
I think we've all probably faced someone who has questioned financial advice, whether that be in person or a reply to a social media post. Usually the basis of their argument is historic missales, and many still refer to PPI. I try to reason with their judgement but underline the significant regulatory reform that has happened over the past decade. Overcoming those hurdles is much easier by speaking to people, as you can get your point across along with the empathy, and I've always turned the doubters around. I'm sure the majority of financial advisers are doing the job because they genuinely want to help support their clients, and if the small minority who are in it for the wrong reasons can be weeded out, I'm sure trust will begin to improve.
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Darryl Dhoffer
Founder at The Mortgage Geezer
Building trust in this industry, it can be a struggle, akin to climbing Everest in flip-flops, but it can be done. Respect the reservation, dont barge in like a blitzkreig salesman. Listen to borrowers doubts, acknowledge the scars left by other brokers, and show them you're not a wolf in sheeps clothing.Financial jargon is a barbed-wire fence around trust, so talk clearly and honestly. Offer bite-sized advice, where each success chips away at cynicism. Disclose fees upfront, let your integrity be your armour. Case studies, client testimonials, tangible results - these are your bazookas blasting through the doubt. Under promise and over deliver. Lets remember, trust is like a bank account – hard-earned, easily depleted. We, the financial soldiers, must be the guardians of that trust, building it brick by brick, battle by battle. Only then will the skeptics disarm, and we can truly guide them towards financial freedom, one victory at a time.
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Rita Kohli
Managing Director at The Mortgage Stop
Being a relativley new business we had to work out how to do this from scratch. The saying trust has to be earned is key - you have to invest time with your clients to build trust to help them see the value you bring to them. When you build this trust you wil find that these clients will be come your advocates - they will leave positive reviews, they will tell other people about you and crucially they will come back. Crucially, they key thing to to remember, is that clients seek us out, so there is clearly an a problem they have that they need help to resolve and our job is to help identify that problem present possible solutions with clear infromation to allow clients to make informed decisions. We've learned you need to have thick skin in this business - some clients just dont want your advice - they just want to prove to themselves they are right, even if they aren't.
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Michelle Lawson
Director at Lawson Financial
Trust is always earned and trust is gained with experience and knowledge. People are cautious as they are expected to disclose very sensitive personal infomation so they have to be confident that it is in the right hands before they start. I will always explain how our documentation is stored and handled as well as why we need it. I get very little resistance from this process which has been fine tuned over 20+yrs. I also ask for all required documentation ahead of research so I can give fully informed rounded advice. Fee free is not always best as it does set the 'What's the catch' alarm bells ringing but in the financial services world, everybody's model is different. We need to ensure that every broker acts with high integrity otherwise those that don't are at risk of damaging an individuals trust in someone else which could be financialy catastrophic as they turn to less reliable and inaccurate sources of advice such as social media.
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Elliott Benson
Owner at Sett Mortgages
It really comes down to explaining to the client how we add value. 99% of the time the issues I deal with for a client are not related to the mortgage and it can be invaluable to have that support through the buying process.
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Alastair Hoyne
CEO, Finanze Capital at Finanze Capital
People are increasingly price sensitive, but ‘free’ has perhaps become synonymous with ‘worthless.’ There’s a wealth of generic information on the web, but in an increasingly complex world people need solutions that fit them. The answer is simple. Be transparent, be flexible and work with clients based on mutual trust and respect. Everything else is a waste of time and valuable resources.
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Rhys Schofield
Brand Director at Peak Mortgages and Protection
If you ask a broker they'll tell you that 99 times out of a hundred, a client will get a better product and outcome with them than going direct to lender. The only thing I can see that would shift the dial in a big way would be a very public education campaign from the FCA around the value of advice.

They spent £20M sticking Arnies head on a robot to talk about PPI, how about investing in financial education?

It's a ringing indictment that Martin Lewis has done more for our industry saying 'talk to a broker' than the regulator we all pay for.
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Gary Bush
Financial Adviser at MortgageShop.com
A large amount of the general public believes that they have the skills to properly maneuver their finances on their own, this is then born out by the increase in poor credit reports around the UK. It's been muted for decades that the country needs a National Financial Services setup by the government to assist people in keeping their lives on track - in a similar way that the NHS does. People's health gets affected if the strains of incorrect financial decisions occur which knocks on to the extended family.
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Jake Stott
Founder at Knox Mortgages

I was recently faced with a client who was wary of working with me due to not having been given the proper advice from another broker. This is what the client said: "We had quite a unique set of circumstances, and multiple brokers didn’t know how to serve us properly. Jake Stott not only went over every detail with us, he found us the right lender which could meet our needs. " I think the issue is not all brokers are created equal. Especially when the big corporate firm's business model is to churn through clients as fast as possible, it's hard to give proper advice, and clients can feel like they have just been sold to rather than been advised.

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Anil Mistry
Director and Mortgage Broker at RNR Mortgage Solutions
In a fast-paced world, it is key for potential clients to know, like, and trust us before they need us. Our mortgage brokerage regularly has a social media presence, offering valuable insights and practical tips, thus building a community of informed followers. At least 90% of our clients who have contacted us after finding us on social media channels have gone on to use our services.

Referrals, born from our commitment to openness, form a significant part of our business. We pride ourselves on transparency, particularly regarding our services and fees, ensuring clients are always well-informed.

In an industry often shrouded in uncertainty, we do our best to stand out as a beacon of trust and clarity. It's not just about transactions; it's about creating lasting relationships built on honesty and transparency.