Broker networks survey: Networks doing well, but room for improvement
July 28, 2016
Does membership of a network give brokers a competitive advantage? This is one of the important questions about the effectiveness of broker networks that Oxbow Partners will answer in a landmark report to be launched, in association with Open GI, at Broker Expo in November 2016.
With over 100 responses to our survey already received from brokers, this blog provides an early preview of some of the findings.
Good news for networks: Brokers are generally very satisfied with their network
- 82% of respondents said they are satisfied with their networks overall whilst 8% expressed dissatisfaction.
- 87% of respondents in senior roles in their company feel their network understands their needs and 88% agreed that they feel looked after by their network.
- 91% agreed the people they interact with at the network are competent and engaged.
Whilst networks are doing a good job, they need to do more with distribution and enhanced products
The survey has revealed interesting insights into different networks. From the responses received from brokers so far, 89% said networks are important to achieve their growth targets. However, only 41% believe their network is helping to secure business against the threat of internet-based competition and 57% feel enhanced products offered by the networks don’t make a major difference.
Popular services are not necessarily essential ones
We asked respondents about the network services they use, how well these are delivered and how important they are.
- Market access – used by 92% of respondents of which 67% said this is an essential service in making their decision to stay with a network
- Compliance support/authorisation – 79% of respondents use this service of which 76% said this service was indispensable to the network
- Networking events and conferences – used by 81% of respondents, however 80% said this is a nonessential service
The survey has also revealed some of the more niche services that, although used by fewer brokers, are essential to those that require them. An example being client money services: used by 33% of respondents of which 73% said they would leave the network if it was not offered.
At the end of the day, pricing remains king
Networks are all trying to enhance their proposition for brokers – but what do brokers care about ultimately? Well, it’s the price that remains king.