NZFSG head of growth Bruce Patten said the adviser group is keen to offer a wider array of products to clients, beyond the traditional mortgage offering. It plans to build volumes to form better relationships with vehicle finance lenders and improve rates for clients.
NZFSG has traditionally processed vehicle financing through third-party intermediary Simplify, but is in the process of ending the relationship. The group’s new processing team began handling applications in September at the NZFSG head office in Auckland.
Patten said the group sees significant opportunities in vehicle financing as it looks to bolster its product offering. He said the move to bring processing in-house was made to “protect the client base”, and make full use of its volumes as it forms close relationships with lenders in the vehicle financing space.
He said: “We wanted to utilise out volumes as a combined business, bringing the business in-house and under the same umbrella. It provides a better outcome for clients, through improved interest rates, and for advisers, through better processes. That’s what we’re working to achieve now and getting great results.”
Patten said the group is processing about 50 loans a month worth a couple of million dollars. He said the group plans to handle about 400 loans a month within the next few years and will make additional hires as the business grows.
He said vehicle financing was a great way for advisers to keep clients and prove their worth: “It is about ring-fencing the clients. If you don’t do it, they might walk into a bank, and the bank picks up their mortgage as well. If you’re the sole place they stop for their financial needs, you are going to be able to do everything for them, from insurance to foreign currency or car loans. It’s about having a full view.”