Brokers urged to adopt ABC client strategy

Speaking on the Finance Specialist podcast, hosts Liam Garman and Trent Carter said brokers must move beyond rate-based competition and instead focus on delivering more strategic, advice-led services to remain competitive.

“I think we need to take a look at our industry and what makes us different as brokers,” Carter said.

“If you’re out there saying, ‘I can get you the cheapest rate, and I’ve got access to 30 lenders’, that’s not going to make you any different to anyone else.”

With higher interest rates and more cautious borrowers driving increased refinancing activity, opportunities for brokers remain, but the way they operate is changing. The pair noted that brokers who fail to evolve risk becoming indistinguishable from comparison sites or direct lenders.

How to level up

A key step for brokers is shifting conversations away from price and towards long-term strategy, Carter said.

On the podcast, he explained that brokers should focus on how debt is structured and how it aligns with a client’s broader goals – including how surplus cash flow is used – whether to pay down debt, invest, or support business growth.

For those working with SME clients, this means going deeper into business fundamentals – such as cash flow, stock cycles, and creditor management – areas where brokers can provide insights beyond traditional lending discussions.

Carter said: “It’s more than just saying, ‘I got you a lower cost loan’ – that’s part of the recipe.

“It’s then saying: I’m going to lower the cost of your loan, but what are you going to do with that surplus capital? Are you going to pay the loan off quicker? Are you looking to deploy it elsewhere in an investment strategy? Are you looking to expand your business?

“I think especially for SME brokers, we get that advantage of being able to have a deep understanding of their business, cash flow and other insights that perhaps some of their other advisers might miss.”

The pair also highlighted the importance of reassessing internal workflows, encouraging brokers to reduce time spent on low-value administrative tasks and instead invest more time in client engagement and education.

Diversification strategies

Diversification was also highlighted as a key pathway for brokers looking to strengthen their value proposition.

According to Carter, many brokers are yet to move into areas such as SME lending due to barriers, including time constraints and a lack of confidence or training. However, he noted that overcoming these challenges can unlock deeper client relationships and new revenue opportunities.

By expanding into business lending, brokers can gain greater insight into a client’s financial position, particularly cash flow, and play a more central role in decision making.

The discussion also pointed to the importance of investing time into education and business structure to support this transition, including delegating lower-value tasks to free up capacity.

Carter said: “I would certainly look at your own business model. How are you structured in terms of being able to spend valuable time with your clients?

“I consider this high-value use of time versus sitting down doing data entry or sitting on hold with lenders, that’s a lower-value use of your time that you can outsource.

“Make sure you’re able to invest in yourself and your business – whether that’s tweaking your business model, implementing automations, or upskilling.”

ABC clients

Segmenting clients was also identified as a practical strategy to improve both efficiency and growth.

On the podcast, brokers were encouraged to categorise their database into A, B, and C clients, allowing them to focus on higher-value relationships, while maintaining more automated communication with lower-priority clients.

This approach enables brokers to deepen relationships with key clients, identify additional opportunities, and strengthen retention, particularly as competition intensifies.

“The first step we encourage brokers to take is to print down their client list and categorise them into ABC clients,” Carter said.

“Your C clients are more transactional. There’s not a lot of opportunity for future growth there, so they sit in your automated marketing.

“With your B clients, there’s an opportunity to elevate them – maybe you’ve done their home loan but not their business banking.

“And your A clients are the ones you need to ring-fence. You’ve got to have deep relationships with them and continue asking how you can support them beyond just the regular check-in.”

[Related: ‘Trust is borrowed’, brokers warned]

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