Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
‘We will lose money for three years’: Wealth Market

‘We will lose money for three years’: Wealth Market

Loan Market’s Sam White explains why he’s choosing an organic launch for the group’s financial planning arm.

The financial planning industry has received its fair share of negative press over the past 12 months, a stigma which Loan Market’s new financial planning business, Wealth Market, wants to get away from.

Speaking to Mortgage Business, Loan Market executive chairman Sam White said the negativity brought upon the industry by the CBA scandal is a challenge when launching a new dealer group.

Advertisement
Advertisement

“I think it is a challenge because there is broad-based scepticism which you need to overcome,” Mr White said, adding that one of the benefits of launching the venture organically is having no legacy.

Financially, though, it has its drawbacks.

“We will lose money for the first three years in this business,” he said. “That is the forecast.

“We will break even somewhere in year three on a monthly basis.”

Mr White said Wealth Group would prefer to recruit volunteers who actually wanted to join the group, as opposed to buying planners and moulding them to fit the model.

Mr White said that buying a financial planning business would have been profitable from day one, but would come with a host of legacy issues.

“There were quite a few financial planners for sale and you go cash-flow positive pretty quickly or even straight away by buying a group,” he said.

“The reason we went organic was because we didn’t want to buy legacy.”

While the group has been gearing up for a launch since February, it is still waiting for its AFSL to be approved before it can begin operating.

An official launch is expected by the end of the year.

 

‘We will lose money for three years’: Wealth Market
mortgagebusiness

 

Latest News

The Australian Securities and Investments Commission has commenced a court case against NAB over allegations that 16 bankers accepted loan i...

The CEO of an ASX-listed mortgage business has seen demand for housing loans “rise significantly” in response to the recent shift in sen...

The non-major has reduced variable and fixed rates across its owner-occupied and investment home loan products. ...

FROM THE WEB
podcast

LATEST PODCAST: Acquisitions and evolution

Do you think the mortgage market will see more consolidation this year?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.