MYI: How do you feel Promise differs from its competition?
Technology, service, expertise, relationships and top commission rates averaging £1200. Promise is probably the most innovative and technology focussed master broker in the sector with a team having over 15 years average experience in secured loans.
We are building the business very much with the future in mind and have continued to invest in technology during difficult trading times whilst others have either totally withdrawn or put their businesses on tick over. Many mortgage intermediaries have been quite slow in coming to the secured loan and debt solution arena.
As they do, and regulation will drive this, Promise will provide them with the best all round package to help them build their loan and debt solution elements or their businesses.
MYI: What do you see in the future for Promise?
We have many plans including technology integration to make it much easier for brokers to identify opportunities. If we can enable brokers to instantly identify and quote secured loans, they are likely to spot significantly more opportunities and be able to convert them with considerable ease.
We also want to enable brokers to earn much more by dealing with Promise We know some intermediaries will always want to introduce loan and debt solutions enquiries, and that’s fine. But we believe there are many who will wish to retain more of the income and take on more of the work as the income from loans and debt solutions is so good.
At some point lenders will want to grow distribution but not at the expense of quality. We are now building our model to provide intermediaries with systems and training which will surpass those seen within even the largest super brokers allowing them to go head to head with the big names providing lenders with well packaged loans.
We believe this model, similar to a franchise, will be good news for smaller loan brokers wanting to grow, new entrants to loan packaging and particularly lenders wanting quality business without the expense of maintaining a large numbers of BDM’s.
MYI: What do you feel is your biggest achievement to date?
I am still very proud of the heights to which we built the Purpleloans brand and the growth in profitability of the business from 1998 to 2002. However, the market was much better then and successfully spending £1million per month on advertising was the norm.
Things have changed hugely since setting up Promise in 2003 and the fact that we are still here with a market leading proposition and so many loyal brokers is a great achievement.
MYI: What helped your business survive the last recession?
Like most businesses we have had our challenges and to survive you need to have a great product, a great team, great service and we do. However, on its own this is not enough to ride the recent market. We have needed dogged determination to stick with the vision and be prepared to put the work in and financially support the long term goals.
We are very grateful to our introducers for recognising our commitment to the longer term and sticking with us through tough times so we can give them the best in the future.
MYI: What unique service do you provide to introducers to help them maximise their business opportunities?
Our technology gives introducers unique choices about how they can transact secured loans and unique control of the sales process and how much they can earn. There are many features and benefits no other master broker can offer but of course Promise can still offer the traditional approach for those who prefer it.
We are also quite unique in our depth of understanding of both loans and debt solutions which means introducers can pass us a lead in the knowledge their clients will receive a holistic service.
Brokers can relax knowing their clients will be well looked after across a range of solutions resulting in a better TCF outcome, happier clients and higher conversions with less work for the broker.
MYI: As one of the UK's most established finance brokers, what are the major changes have you seen in the industry over the last few years?
Without doubt regulation has been the biggest change which, in my opinion has gone too far. Rather than just protecting consumers the regulators seem hell bent on preventing some consumers from borrowing in certain sector even if they are fully informed and understand the risks.
This combined with an overly pro consumer complaints process has resulting in many lenders focussing more on protecting themselves from future claims than making sensible, risk based lending decisions to well informed borrowers.
The industry, both loans and mortgages needs regulatory balance and this will simply no longer exist if loans follow the FSA’s approach to mortgages.
MYI: What are your predictions for the future of the loan industry through mortgage intermediaries and IFA’s ?
Although undoubtedly products and demand will grow in 2011, I don’t see the loan industry growing greatly through the intermediary sector unless intermediaries and networks get more serious about the opportunity.
At a time when you would expect brokers to be aggressively pursuing new income streams, it is a sad fact that many have just not bothered to engage with secured loans. So instead of seeing professional intermediaries grasping the chance to become a significant distribution channel for loans, I expect to see the growth come from the traditional “direct to consumer” loan brokers.
That said, it’s not too late fo
