Diversification to drive Vow growth - Broker News (9 September 2011)
Friday, 9 September 2011
Vow Financial CEO Tim Brown has told broker members the group was focused on growth despite tough market conditions.
Speaking at the aggregator's second annual conference being held in Fiji, Brown said the current market meant brokers felt they were writing as many loans as ever, but were often hampered by valuations and tighter credit.
However, Brown said the aggregation group had still managed to achieve a 3% annual rate of growth in its book in the 15 months since the group formed, and that it had also successfully signed 49 new broker agreements.
Outlining future plans, Brown said the aggregator was focused on further growth by continued diversification of its business, as well as delivering on promises for a more robust IT infrastructure.
At the conference - with a 'Blue Oceans' theme - Brown said diversification would be crucial to the aggregator's future growth, including new business lines in financial planning and wealth, property, insurance and legal.
Commenting on the group's recent alliance with general insurer Allianz, Brown said members had made the deal one of the group's most successful to date, with $100,000 worth of premiums written in just three months.
Likewise, Brown said Vow Legal - which will enable member brokers to earn fresh revenue from e-conveyancing - will contribute to boosting its business in the year ahead.
"Diversification is a big priority, and it's essential not only to the growth of our business, but your businesses," he said.
Outlining its IT system strategy, Brown announced the group had finalised a deal with Pisces, that will see it roll out the IT provider's client and loan management platform - the Spectrum Suite - in October.
As part of its IT plan, Brown also committed to improving the group's commission payments system, to ensure that brokers were 100% satisfied with the effectiveness of the platform.
In addition, Brown told members that it had recently signed up the Elders Home Loans franchise business, which includes 30 businesses writing $30m a month. Brown said the deal would increase its regional footprint.