While the Financial Sector draws a deep breath, odds are that the outcome of the Banking Royal Commission ensures your next car loan will be a better one.
After more than 10,000 public submissions, and more than 60 days of, at times, horrific evidence, the final report of the Banking Royal Commission into the financial sector was recently released.
While the outcomes and recommendations shocked many, here at 1800Approved, it only served to strengthen our resolve to deliver our customers great service, fantastic client-focused financial advice and reinforced our mantra; “We Work for You, Not your bank”.
Why did we have a Banking Royal Commission?
A Royal Commission is Australia’s highest form of inquiry into matters of public importance.
From the outset, the aim of the Banking Royal Commission was to highlight any possible dodgy practices in banks, and wrong-doing in insurance and superannuation companies.
From its outset, the commission heard disturbing stories of people who'd lost assets and livelihoods due to bad management, misconduct and even at times, illegal behaviour.
By the time we were done, Commissioner Kenneth Hayne made 76 recommendations, and both the Federal Government and Opposition said it would act on all of them.
However, what does that mean to you and how will it ensure that your next car, boat, motorcycle, boat, or even home loan will be a better one?
You’ll get even better Customer Service than you did before
The Royal Commission examined the issue of responsible lending. Of course, as we’re all aware, financial institutions and advisors should ALWAYS have their client’s express wishes and best outcomes in mind when they recommend financial products that their clients will spend their hard-earnt cash in repaying.
As we’re sure you’re aware, 1800Approved is an award-winning financial broker, winning consumer and industry awards year-on-year. However, some of our industry colleagues don’t self-regulate and hold themselves to the same high standards; Commissioner Hayne unearthed discrepancies in the way that some finance brokers operate.
Even now (until the Commissioner’s recommendations are acted upon), if you're thinking of buying a new car, motorcycle, boat or even a home and you empower a finance broker to find you the best loan on the market, there are currently no rules in place which state that the broker has to act in your best interests. Unscrupulous brokers may possibly recommend a loan with higher interest rates or fees because they receive an incentive from that lender.
Commissioner Hayne wants to change the industry standard to what we have done here at 1800Approved since we began business over a decade ago – give customer service based on the best possible outcomes from our clients at ‘best practice’ high standards. It seems incredible to think that Commissioner Hayne was required to recommend that finance brokers have to work in the best interest of their clients, and if they don’t do so, they could potentially face civil charges.
At 1800Approved, you’ll continue to get the great service you always did. However, many finance brokers may slide by the wayside as Commissioner Hayne’s recommendation that the clients will be paying for good service from finance brokers becomes instituted.
We believe the good finance brokers will survive and the less good may perish.
The result for you – better loans and how YOU want them.
Value-adding for the Consumer essential to reform
Commissioner Hayne left the Financial Services sector under no illusion that it must do better in providing loans and services with the best interests of the customer in mind.
Its something that 1800Approved has instilled in its company culture ever since being established. By offering great service and a range of lenders to choose from, the art of selecting the best loan and most suitable to the individual needs of each-and-every client, is something that 1800Approved has built its reputation upon.
Moreover, staying one step ahead of the pack and offering its clients extra value in the competitive vehicle sourcing service, ‘Drive’ arm of its business to accompany their loan, it can be seen that 1800Approved has long been offering its clients the extra mile to which Commissioner Hayne has prescribed should be normal for the brokerage industry.
Others brokers now play catch up
Financial industry laws and regulations will now apply more broadly than they have previously and finance brokers all over the country are now scrambling to play catch-up.
What it will mean for you and your relationship with 1800Approved is that competition for your business will improve drastically.
We welcome the change and look forward to being a better brokerage for you.
One thing remains unchanged – remember, we will continue to work for you and not your bank – just as we always have.