Go Compare, or Compete?

A lot has been said about comparison websites and their impact on the broker community. Some say that they compete directly with brokers while others even seem to say that they want brokers to work with them!

The reality is probably somewhere between the two.

Yes, you have clients who will go directly to a comparison website and complete their transaction online but does that really work for mortgages? I suspect not. Comparison websites have made in-roads into products like travel and car insurance but I am not aware of any that have made a material difference in the mortgage market.

What we do know is that the vast majority of potential mortgage customers do start their journey looking into a mortgage on the internet but the reality is that they don't finish it there. From their first research on the internet they will generally tend to go one of three ways; either become a referral from the comparison website to a lender or a broker, go directly to a lender, or go to a broker.

If the client starts their research on the web then why can’t you as a broker attract some of that business to your own website? I look at many broker websites (those that have them!) and I often think they could be better designed. They can sometimes look static, impersonal, and not very innovative, and they often lack information and are basically unable to give the client the information they seek. According to Google, 24 million people in the UK have researched a financial product on the internet in the last 12 months and I imagine many of those were looking for a mortgage. There are three key things a potential mortgage client is looking for on the internet:

        1. A mortgage calculator (i.e. what can they afford to borrow)

        2. A comparison of mortgages that are available (this doesn't have to be every mortgage but a broad selection of the best ones)

        3. Information about mortgages, the purchasing process and an explanation of the terminology (i.e. how to buy a mortgage)

The questions for brokers then become; “Does your own website provide this information to prospective clients?  Does it provide sufficient information?  Do you know where people surf on your website and at which points they leave?”  All this is possible to track with some fairly simple software that can help you identify the pages that need improvement. You might be surprised which pages cause most clients to leave you.

What about the comparison sites’ other product sales? Can you as a broker really provide travel, car or ASU (accident, sickness and unemployment protection) insurance for example? Quite simply, yes you can, and your website can become a sales tool for your business rather than just a virtual brochure. This isn't rocket science and it isn’t expensive. Look at other successful brokers’ websites and take inspiration from their ideas.

So, instead of letting the comparison websites swallow up your business, get your own website tip top and start competing!