FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING

FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT TASKS Page 1
© Copyright 2004-2017 The National Finance Institute V.010517
EXERCISE 2
To be completed by the Trainee
You must include this page with your Exercise 2 submission
Alternatively you can retype the details as a front page to your Exercise
Trainee name _________________________________________________________________________

Trainee Postal Address	______________________________________________________________ ______________________________________________________________
Trainee Daytime Phone numbers _________________________________________________________
Trainee Email address	________________________________________________________________

I state that this Exercise contains no material which has been written by another person. I make this
statement with the understanding that my assessment may be compromised if found to be otherwise.
Signed _____________________________________________ Date __________________________
Submissions can be mailed to NFI, P.O. Box 1354, Capalaba B.C. Qld 4157 OR
Email to assessments@financeinstitute.com.au (if emailing you must adhere to the emailing size rules)
OFFICE USE ONLY BELOW HERE
Date received by NFI ____________________ Date received by Assessor ______________________
Name of Assessor _____________________________________________________________________
Date assessed ___________________________ Mark ____________________

Competent	
Not Yet Competent	

Assessor’s Comments: …………………………………………………………………………………….
…………………………………………………………………………………………………………………..
…………………………………………………………………………………………………………………..
…………………………………………………………………………………………………………………..
…………………………………………………………………………………………………………………..
Further action required (if applicable) ______________________________________________________
FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT TASKS Page 2
© Copyright 2004-2017 The National Finance Institute V. 010517
EXERCISE 2
Task
Total marks possible 50
Assume you are now a mortgage broker and you are either working as an independent
contractor, or are self-employed or about to open a franchise. Assume you have two other staff
members working with you. Their roles are your choice.
Using the template we have provided as a guide, prepare a basic business/marketing plan outline
for your business, for the next 12 months, incorporating the following activities:
– Developing professional relationships
– Networking
– Prospecting for clients
– Marketing ideas
– Client retention
Guidelines –
1. You must type your marketing/business plan ie. construct it as a document on your PC
and save either as a doc or pdf file. A minimum of 4 typed pages is expected.
2. You will not need to provide any budgeting estimates for the purpose of this Exercise but
you are welcome to do so
3. You will not be judged on your typing or word processing ability
4. The marketing plan template we have provided is for guidance only – you do not need to
provide information for all of the points outlined unless you feel they are relevant and
you do not need to follow the template we have provided if you already have your own
business plan document or template to follow
5. You will not be judged on your skill as a marketing expert but on the evidence of your
understanding of the points below
6. If you still feel unsure where to start with your business/marketing plan, then you should
Google this to get a feel for what different plans can incorporate. We want to know what
strategies you would use in order to succeed as a broker.
Points you must cover –

	How do you envisage being able to apply your knowledge, skills and understanding to enable clients’ needs and expectations to be met and how will you incorporate the functions associated with the provision of a quality, professional practice to those customers. How do you envisage you will develop, nurture and maintain professional relationships with


clients, colleagues and other referrals in order to complete work tasks, further the reputation
of the organisation or your company, as well as the profession generally, and improve long
term relationships and sales.

	How do you envisage you will establish contact and then build rapport both in your own industry and within other finance industries incorporating sales and presentation skills as well displaying an industry-knowledge of regulations, disclosure and selling. How do you envisage identifying and contacting potential client prospects through use of


networks, leads and research skills.
FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT TASKS Page 3
© Copyright 2004-2017 The National Finance Institute V. 010517
So just repeating …
Overleaf is the template mentioned which we have provided for guidance only – you do not
need to provide information for all of the points outlined unless you feel they are relevant and
you do not need to follow the template we have provided if you already have your own
business plan document or template to follow. The template is provided to make it easier for
you.
You can use the template as a guide or you can design your own business/marketing plan.
If you do not feel that you have sufficient knowledge to construct a business/marketing plan,
you will need to search on the internet for assistance.
If you are going to be working for a company who has their own business plan, you can utilise
the ideas within that plan PROVIDED THAT, you customise it to suit your own situation, your
own anticipated methodology and your own ideas for how YOU are going to succeed in the
finance industry ie. what strategies will YOU utilise.
A minimum of 4 typed pages is expected if you do not use the template.
FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT TASKS Page 4
© Copyright 2004-2017 The National Finance Institute V. 010517
[Your business name]
[Prepared by]
[Date]
1. EXECUTIVE SUMMARY
The executive summary should provide a concise overview of the contents of the
marketing/business plan. It should not contain information that isn’t found within other sections
of the plan. The idea of an executive summary is to provide somebody who doesn’t have the
time to read the entire document with a detailed summary of its content. It is easiest to write
the executive summary last.
2. SITUATION ANALYSIS
The situation analysis should provide a detailed overview of the environments in which your
mortgage broking business operates. In this section, provide a general summary of the
environments in which you operate.
2.1 S.W.O.T analysis

Strengths What internal strengths help you to be competitive?

Weaknesses What internal factors detract from your success?

Opportunities What external factors present future opportunities to grow your business?

Threats What external factors present a threat to the future success of your business?

2.2 P.E.S.T analysis
What are the major factors that will have the greatest impact on your mortgage broking
business? For assistance you may wish to refer to the various research reports written by
organisations like Australian Prudential Regulation Authority (APRA) – www.apra.gov.au;
Consumer Credit Legal Centre (NSW) – www.cclcnsw.org.au; Goldman Sachs –
www2.goldmansachs.com; or Macquarie –
http://www.macquarie.com/au/corporate/expertise?expertise=research. These are just some
suggestions, the internet is a huge source of research reports.

Political: Examples include: taxation changes, stamp duty changes, industry regulations and PS146 legislation.

Economic: Examples include: interest rates, First Home Owners Grant, inflation rates, wage movements and unemployment.

Social: Examples include: growth in single person households and people having children later in life.

Technological: Examples include: lender comparison software and back-office processing platforms.

2.3 Competitive analysis

Demand for service?

FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT TASKS Page 5
© Copyright 2004-2017 The National Finance Institute V. 010517

Direct and indirect competitors?

Strengths and weaknesses of competitors?

What markets are your competitors targeting?

An analysis of market shares:

Similarities between your business and competitors:

A general analysis of the competitive marketplace in which you operate:

2.4 Market analysis

(a) Market growth rates?

(b) Market expansion opportunities?

(c) Total market size?

Growing or declining marketplace?

3. MARKETING GOALS
What do you want to achieve from your marketing? Your marketing goals are your key
anticipated outcomes of the marketing activities you plan to conduct during the ‘life’ of your
marketing plan. Ensure your goals are easily quantifiable, as this will allow you to measure their
success. A summary of the marketing goals is included in the table below:

What percentage increase in conversion from enquiry to settlement do you want to achieve?

Where would you like your business to be in 12 months’ time?

What growth in client numbers do you want to achieve?

What percentage increase do you want in sales?

What growth do you want in profitability?

What growth do you want in staff numbers?

What new services do you want to offer?

How many new distribution channels do you want to establish?

What percentage increase in new enquiries do you want to achieve?

What percentage increase in repeat business do you want to achieve?

4. MARKETING STRATEGY
Your overall marketing strategy should be explained in this section. Don’t be specific in any
particular areas – instead provide an overview of the marketing strategy your business will
employ.
Example strategies include:

(a)	Market penetration: encompasses focusing on increasing lending volumes to existing markets. Market development: is where you offer your existing services to new markets. This might be via geographic expansion or by directing marketing efforts at new market segments. Product development: is when you develop new products to better serve existing markets.
(b)
(c)

FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT TASKS Page 6
© Copyright 2004-2017 The National Finance Institute V. 010517

(d)	Diversification: is the process of taking your business into new products and also new markets. Retrenchment: involves removing or selling off parts of the business or product lines.
(e)
Some other considerations include:
(a) (b) (c) (d)	Niche marketing strategies New product opportunities Matching services offered to chosen market segments Customer acquisition via customer retention.

This section should be written like a conclusion – bringing all the various sections together to
create a clear picture of the total marketing strategy your business will employ.
5. MARKET SEGMENTATION
Market segmentation refers to dividing or breaking apart the total market of all prospective
borrowers into smaller, more manageable segments. Common segmentation criteria include age,
education level, family lifecycle, occupation, religion, race, geographic boundaries, lifestyle, etc.
5.1 Target market(s)
Your target markets are sub-markets of your main market. The selection of these markets and
their relationship to each other is entirely dependent on your marketing strategy. For example,
if you’ve segmented the total market based on “loan type required” and you have decided to
target borrowers requiring professional packages for example, then your target markets may
include accountants, doctors, solicitors and financial planners. However, had you segmented the
total market of all prospective borrowers based on occupation (for example, targeting those in
the medical industry), then your target markets might include those requiring professional
packages, investment loans, owner occupied loans or bridging loans.
The markets selected are interchangeable, so it is important to choose your market segment
carefully. By first dividing the total market into segments and then dividing that segment into
target markets you are able to identify the unique requirements of your prospects in these submarkets.

Who is your ideal client?

How well do you know and understand your chosen target markets?

How well do you understand their lending needs?

Are there ways to segment your market so you can offer highly specialised products to specific groups reflecting their individual needs?

6. MARKET POSITIONING
Your brand should reflect your market position and your market position should reinforce your
brand. For example, if your market position was “experts in young family lending”, then your
branding might include a photo of a young girl flying a kite with her parents. Perhaps your
business name might be “Your Future Home Loans” and your logo would be fun and upbeat.
What is the one ‘aspect’ you want your chosen market segment to think of when they see or
hear your business name? The answer to this question becomes your positioning statement:
Put some thought into your market position, because it will have a profound effect on the longterm success of your mortgage broking business.
FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT TASKS Page 7
© Copyright 2004-2017 The National Finance Institute V. 010517
7. MARKETING TACTICS
This section contains the more practical aspects of your Marketing Success Plan, such as services
offered, commission levels and promotional techniques employed.
7.1 Product strategy
In this section, describe the exact “finance products” you will offer. For example, residential
mortgages, commercial mortgages, leases, personal loans, etc.
Describe how these products fulfil the needs of your market segment. For example, if you were
targeting the professional market, then you might only offer professional packages, investment
loans and commercial mortgages. You might refer all other business to another mortgage broker
that has agreed to refer your target audience back to you.
Also, mention the make-up of your lender panel. Are all required “borrower-types” covered by
your lenders?
7.2 Service strategy
In this section, you detail your service process and how this will integrate into your marketing
strategy. For example, if you are targeting the professional market, you might conduct lunchtime
interviews at your client’s place of work. Instead of providing movie tickets as an approval gift,
you might give a branded compendium. Make sure your service process ties into your overall
marketing strategy.
7.3 Pricing strategy

(a) (b)

Do you charge brokerage fees, receive commissions or a combination? What is your average lender commission rate (upfront and trail) and average brokerage fee? Do you receive any volume bonuses from your aggregator or franchisor? Do possible biases exist in relation to differing commissions? Do you pay referral fees for introductions from strategic alliance partners? What is the average size of mortgages in your geographic location? Distribution strategy You should describe how your service is delivered to your target markets. Explain the distribution methods you are employing and justify your choices. Do you have an internet presence? Do you have mobile lenders with the ability to function efficiently in client’s homes? Do you have public offices with private interview rooms? Are there any other specific distribution channels that would be appropriate for your particular business? For example, if you target high level managers from a few key companies perhaps you could hire an interview room within their building for a day each week.

(c) (d) (e) (f) 7.4 (a) (b) (c) (d) (e) (f)

(g)	How do your distribution channels fit into your overall marketing strategy?
7.5	Promotion strategy
Your promotion strategy explains how you will promote your brand and services to your chosen market segment. It is the tools used to achieve results. Following are some possible marketing tactics you might consider:
	Brochures / flyers	 Seminars / workshops

FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT TASKS Page 8
© Copyright 2004-2017 The National Finance Institute V. 010517

         

Newsletters Posters Direct mail letters Sponsorships Trade shows / exhibitions Giveaways Coupons / free samples Competitions / sweepstakes Host beneficiary arrangements Prospecting cards

 Conferences / public speaking  Media releases  Advertising  Web-based marketing  Video brochures  Telemarketing  Catalogues  Strategic alliances  Point-of-sale merchandise  Information packages

7.6 (a)	People strategy What training needs to be undertaken to ensure your staff back-up your marketing messages? How will you communicate new marketing initiatives with your staff? How will you generate marketing ideas from your staff?
(b) (c)

Remember the most important people in your marketing equation are your staff and clients –
you need to consider both.
8. RESEARCH
8.1 Consumer research

(a) (b) (c) (d)	How will you monitor the changing needs and preferences of your clients? What methods will you employ to gain the insights you require? Who will be responsible for implementing the research findings? How will staff be encouraged to gain ongoing client insights? And how will they be
rewarded?
(e)	Will you use an external research company or consultant to assist in the design and
delivery of research?
This section should detail systems that are in place for client feedback and reporting, that may result from service failure, product comment or bad service.
8.2	Market research
(a)	How will you monitor trends in the economy? For example property sales, interest rates,
lending volumes, consumer trends, etc.
(b)	Are there any specific areas you need to monitor, because of your marketing strategy? For example, if you target non-conforming borrowers you would be interested in levels
of financial hardship. How will you access industry trends?	(c)	For example memberships of industry

associations, aggregator’s newsletters, industry journals, networks and government
departments.
Market trends are critical in the financial services industry, as companies need to evolve and
adapt as major economic changes occur.
9. CONSUMER BEHAVIOUR
In this section, you need to analyse the behaviours of mortgage consumers. Understanding the
reasons why consumers patronise different lenders and brokers will give you a very powerful
marketing weapon.
FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT TASKS Page 9
© Copyright 2004-2017 The National Finance Institute V. 010517
You will base your analysis on the results gained from the research activities detailed earlier.
This section will address:

(a) (b) (c) (d) (e) (f) (g) (h) (i)

Why borrowers use your mortgage broking service? What the perceived benefits of your service are? What are your client’s expectations and does your service meet their standards? How do you gain their loyalty? Why do your clients use your services over other mortgage brokers? What type of loan features most appeal to your prospects? How are choices made when deciding upon a mortgage broking service? Are borrowers typically presold on a brand or are they more impulsive? What activities do your prospects enjoy in their leisure time?

10. MARKETING BUDGET
For your own personal development, you can include a marketing budget here, but it is not
required for the purposes of this exercise.
11. EVALUATION
How will you evaluate the results achieved from your marketing activities? In order to evaluate
effectively, you must set specific targets and time frames, so you can quantify the results.
Effectively, this section evaluates your success in achieving your marketing goals. It should also
contain your strategies on how you will measure your success, contingencies if objectives aren’t
met and a summary of ideal outcomes.
If some of the strategies aren’t working, attempt to determine the reason for failure. Is the
strategy flawed? Is there a problem with implementation or timing?
12. IMPLEMENTATION PLAN

Strategy	Actions	Who	When
[Strategy description]	[Actions required to implement strategy]	[Who is responsible for implementing this strategy]	[When will this strategy be finished]

This completes your Exercise 2
– – – – – – – – – – – – – – – – – – – –