[ad_1]
Moneta Money Bank letos Stop working with a financial advisor. She is said to be able to distribute her products herself in branches and online without middlemen. Likewise, Air Bank and Fio have also had it for a long time.
Tomáš Spurný, head of Moneta, said that intermediaries’ services were expensive, which led to higher product prices, especially mortgages.
Jan Brejl is a business director at Partners Group and worked at Moneta before joining the financial consultancy. So he can see things from both camps – so we start talking about a topic that has divided people in finance in recent months.
Financial advisors do overcharge clients MortgageAs Tomáš Spurný said?
Banks usually grant around 1.6% of the mortgage amount. Everyone can find out exactly how much a particular mortgage costs from a European standardised overview of information, and banks have been required to list all costs associated with a mortgage since 2016.
That’s how much the bank should save by getting rid of the intermediaries, Moneta’s boss says. Five percent doesn’t seem like much, but Moneta made about $3.3 billion in mortgages last year. So we’re talking about a potential $50 million if all those loans went through intermediaries. That’s how the bank saves money, says Spurný.
Jan Brejl sees this differently in the podcast. “The financial advisor saves the bank a lot of costs because the bank transfers a key part of the acquisition process to him. Also, the huge marketing costs come into play, the money that the bank spends on TV ads and all other forms of promotion to attract customers to the branch,” he points out.
“When you add it up, you’ll find that the consultant doesn’t make the mortgage more expensive for the bank. That’s a tendentious statement. Besides, the bank only pays the consultant if it achieves a mortgage with a client. That’s much more beneficial to her than if she had to pay a fixed monthly fee for an employee,” Brejl added.
Another strong theme emerges starting at minute 15 of the podcast. When inflation soared not too long ago, mortgages soared with it. But why aren’t they discounted at the same rate now?
Jan Brejl said one reason for this is a lack of competition. Mid-sized banks such as Equa and Sberbank, which were once its driving force, disappeared from the market. But that is only one reason. Another reason is the lack of capacity at the banks, which fired people working on mortgages during the mortgage recession of the past two years, he said. So now there is simply no one to approve them.
The most important thing happens after the 23rd minute. What’s past is past, but what’s to come? Where might mortgage rates go this year, how much lower might they fall in 2025, and what will the new mortgage rates look like? Partner Bankswhen he comes with his offer early next year?
We will also discuss whether mortgage discounting will prompt the Czech National Bank to re-restrict the amount of money banks can lend against a person’s debt and income.
Listen to our podcast:
40 minutes later we arrived at Partners Bank. I mainly wanted to ask what the launch of Partners Bank meant for Partners advisors’ clients and advisors themselves – what access would they have to products from other banks and financial institutions.
We are also working on the Partners Bank business model which is quite unusually based on an extensive network of branches which are effectively franchises. They are being transformed into Partners consulting locations – it was interesting to hear about the marketing impact of adding the magic word bank to the sign of the Partners franchise.
Of course, after the 53rd minute, I have to ask what to do if I want to become a banker myself and open my own branch under the banner of a partner bank. If you work hard, you can turn it into a well-functioning business in two years…
Note: The Partners group also includes the company NextPage Media, which operates the Peníze.cz website.
Martin Venus
Share this before I delete the article
[ad_2]
Source link
