Why we all need to work even closer together: How key partner programmes can help

The idea of having a key partner network or preferential club is nothing new. We know they work, we know they exist, and we know that they are here to stay. Historically, there has been a mis-conception that these partnerships are fee focused and a route to earn more money for your business. Whilst I believe the latter to be absolutely true, the former is an outdated way to view preferential partnerships.

So then, what are they really all for? For me, operating in this way, no matter who you are, is an undoubtable benefit for the industry. It is about the age old saying of working smarter, not harder. For brokers, engaging in key partnerships means that they can identify lenders’ strengths earlier on, build gravitas on behalf of their customers, take a more targeted approach when it comes to searching for the right funder and ultimately provide a better service. Developers will benefit from quicker response times, improved service levels and a more professionalised experience with brokers having greater confidence in their core lender partners to deliver for the customer; brokers who earn a higher proc from preferential partnerships will also have more flexibility to pass on savings to their customers.

From a lender perspective, these partnerships are absolutely not about exclusivity. As funders, we want to move deals through the pipeline quickly and efficiently to write more business. Having a core broker network expedites a lot of the initial work upfront and building familiarity in processes means that brokers and lenders are on the same page from the moment the deal is agreed. Moreover, creating a Key Partner programme comes as part of an overarching move to further professionalise the industry. As more and more entrants come into the space, we have a shared responsibility to ensure that minimum expectations are maintained. That means that brokers and lenders should be challenging one another, and the emergence of these preferential partnerships can act as a tool to incentivise firms to achieve higher standards. Without them, we can have lenders jumping between multiple brokers and vice versa which can leave margin for error and with no real loyalty to the relationship, resulting in sub-standard service.

It’s important to get the right balance around key partner networks; working with too many businesses dilutes the effectiveness, the competitive edge it provides and could ultimately increase costs particularly on the lender side. Too few partners can mean missed opportunities, a risk of alienation and the creation of an artificial market landscape. A key partner programme should be prudently thought out, work in the best interest of both lenders and brokers and ultimately, provide a better service for the end customer; if done correctly, it can be transformational for businesses and raise industry standards.