Mortgage loans are financial loans that are secured

ASSIGNMENT 2 

1. Executive Summary:
Mortgage loans are financial loans that are secured by a real property that acts as a promissory note in the repayment of a specific sum of money over a length of time that had been pre-determined by both the borrower and the lender. The project looks into the basic principles of a mortgage firm and suggests a marketing plan that aims at generating market leads and successfully retains customers.

Table of Contents
Exercise 2 5
Situational Analysis 5
2.1 S.W.O.T Analysis 5
2.2 P.E.S.T Analysis 6
2.3 Competitive Analysis 6
2.4 Market Analysis 8
3.Marketing Goals 9
4. Marketing Strategy 9
5.1 Target Market 11
6 Market Positioning 12
7. Marketing Tactics 13
Exercise 4: 20
1. List at least 5 points that are important to ensure communication delivers on customer needs, expectations and priorities. 20
2. It is important that staff should deliver an outstanding customer experience at all times. What are the specific behavioural competencies that this requires and how would this be measured? 20
3. Using information provided in Unit 2, it is important that an organisation continually improves. How might an organisation collect information to facilitate this? 21
4. There are many laws that regulate the way businesses may provide service to a client. Why is this important and what is your responsibility? 21
5. Write a short guide regarding customer service that you would use, as a mortgage broker, to look after a customer. 22
6. Detail some clear recommendations on how to improve service delivery to prospective customers. 23
7. Using information in Unit 11, before a mortgage broker attempts to handle an objection they must first determine what kind of objection they are dealing with. There are three common types of objections. List the three objections and provide a brief explanation of each one. 23
8. Using information in Unit 12, there are four main personality types a mortgage broker may have to deal with. List the four types and provide a brief description of each. 24
9. Using information in Unit 12, there is a five point plan to successfully establishing networking, list the five prescribed methods. 25
10. Using information in Unit 4, list four different sectors of the financial services industry and describe how they interrelate. 25
11. Name five things you can think of that may make your current or future business more environmentally sustainable (the business can be your own or the business you will, or would like to, be working for). 25
12. List 10 documents required for an ACL application. You may need to refer to the Appendix 10. 26
13. Visit four different bank's websites, list one loan product from each website, and list the key features of each of those products 27
14. Using the steps provided in Unit 9 Practice Activity 1 ‘Calculating Borrowing Capacity', determine what this client can borrow, at an interest rate of 5%, qualifying rate of 7%,a loan period of 25 years, on salaries of Mr X $105,000 gross per annum and Mrs X $47,000 gross per annum, they have two children. They have credit cards of $10,000 limit and a personal loan of $25,000 at repayments of $600 per month. (Tip: if you include your calculations we will try to understand whether your final result has been achieved correctly). 27
15. Employability Skills The topics below refer to the basic employability skills you need in order to carry out the duties of a finance broker. You are required to complete a short statement on each employability skill below to demonstrate how you believe each employability skill will reflect on your employability. 28


Exercise 2
Situational Analysis

2.1 S.W.O.T Analysis
Strengths:
Finding the best solutions for high ratio purchases
Easy access to private lenders and mortgage investment corporations
Finding alternative mortgage solutions
Focusing on the best deals of mortgages in the Australian market
Weaknesses:
Heavily dependent on banks
Restricted by a minimal lobbying budget
Lack of diversity that leads to heavy reliance on mortgages
Gradual decrease in the High Ratio Business
Opportunities:
Investing in Private Lending and MICs
Focusing on Alternative Mortgages
Investing in innovation and technology to attract potential customers
Striking deals with credit unions in order to provide members in return of mortgage facilities
Threats:
The National Gross Demand for mortgages is rapidly declining
Limited transactions due to a large number of banks exiting the Broker Channel
Limited transactions as a source of alternative mortgages

Table 1: S.W.O.T Analysis
(Source: Created by Learner)

As a self-employed mortgage broker of Easy Brokerage, it is mandatory to find the best solutions to gain higher ratio purchases by implementing alternative solutions. The dependency on banks should be reduced and the firm must adapt to the gradual decease in high ratio business (Upson et al., 2017). The firm can explore new opportunities by investing in technological advancement to create awareness regarding its services and meet threats such as limited transactions due to multiple banks exiting the Broker Channel.

2.2 P.E.S.T Analysis
Conducting a P.E.S.T analysis enables a firm to be aware of the environment in which it is to operate. The highly dynamic Australian market can pose certain unplanned threats to the marketing strategy of the firm.
Political factors: The politics of the country significantly restricts the business process by regulating the spending power of consumers. The political environment of the country is created by policies of the government that regulates the tax of the business. Business organizations develop marketing ethics by involving various trading agreements such as NAFTA, EU, ASEAN, etc (Theeke, Polidoro & Fredrickson, 2017).
Economic Factors: As a new brokerage firm, it is mandatory to consider the present state of the trading economy. Before arriving at business policies, it is mandatory to be updated regarding the per capita income of the company, the rate of inflation, the Gross Domestic Product and the rate of interest of the market.
Socio-Cultural Factors: The social and cultural influences of the Australian market is diverse, due to which, the newly established brokerage firm should develop its strategies based upon the dominant religion of the nation, the amount of money that consumers have for investing in properties and mortgages, attitude of the customers to firms that provide mortgage facilities, etc.
Technological factors: Ion order to attract higher number of clients, the company must invest in state-of-the-art infrastructure and implement technological advancement to appeal to the modern users and gain competitive advantage in the market. It will provide the company with improved channels to interact with customers and increase client engagement.

2.3 Competitive Analysis

Demand for service? In the past six months, the property investment sector is witnessing extraordinary growth.
Direct and indirect competitors? The direct competitors are the firms that sell similar brokerage services in the Australian market. The indirect competitors consist of firms and companies that sell substitute services such as banks and finance companies.
Strengths and weaknesses of competitors? A majority of brokers and third party providers lack heightened security that increases the risk of the customers. These firms are weak in the link chain in the era of tighter regulatory scrutiny.
What markets are your competitors targeting? The marketing efforts of the competitors are targeting the first-time homeowners and residential financing.
An analysis of market shares: Home lending activities have increased by 7% in the past 12 months with mortgage broker shares attaining an all time high. Most brokerage firms are utilizing online share trading services. The share prices of brokerage firms such as Amscot, CMC Markets and Belldirect are the highest.
Similarities between your business and competitors: Easy Brokerage provides similar services like its competitors (Westpac, nabtrade and CommSec) by targeting traders, casual and active investors.
A general analysis of the competitive marketplace in which you operate: The Australian market is characterized by the presence of multiple financial institutions, banks, and mutual fund companies that capture 25% of the finance market.

Table 2: Competitive Analysis
(Source: Created by Learner)
2.4 Market Analysis
(a) Market growth rates? The growth rate of brokerage firms is calculated by analyzing the earnings growth and sales growth to attain annual sales figures.
(b) Market expansion opportunities? Attending sales meetings, improving familiarity with stock research will help Easy Brokerage to outperform in the Australian market.
(c) Total market size? The Australian market forecasts a growth rate of $12bn by the end of 2023. The sector employs 23,798 individuals and creates 2,924 job opportunities (Sadiq Sohail & Al-Otaibi 2017).
Growing or declining marketplace? According to the finance Association of Australia, in the quarter of March, 2016, brokerage firms in Australia originated $43.4 billion of new home loans (Sirgy, 2014). The growth rate is significantly high in comparison to earlier years and increases the profile of brokerage firms.
Table 3: Market Analysis
(Source: Created by Learner)

3.Marketing Goals

1. What percentage increase in conversion from enquiry to settlement do you want to achieve? The firm aims to attain a 25% increase in the total revenue earned by the firm in the year of establishment.
2. Where would you like your business to be in 12 months' time? I want to spread into newer markets of the country and set up multiple stores.
3. What growth in client numbers do you want to achieve? I want to attract the budding entrepreneurs of the nation and attempt a two fold increase in the client base.
4. What percentage increase do you want in sales? The sales of the company should increase by 50%
5. What growth do you want in profitability? I want the company to earn $16,500
6. What growth do you want in staff numbers? Setting up offices in multiple locations will require an additional employee strength that will vary between 25-50
7. What new services do you want to offer? I want the company to offer education loans
8. How many new distribution channels do you want to establish? I want to continue with the existing channels of distribution
9. What percentage increase in new enquiries do you want to achieve? I want to develop marketing strategies to attract a wider base of customers who seek financial assistance,.
10. What percentage increase in repeat business do you want to achieve? I want to develop positive relationship with clients to encourage them to continue using the services of the firm.
Table 4: Marketing Goals
(Source: Crated by Learner)
4. Marketing Strategy
In order to ensure its survival in a highly competitive market, Easy Brokerage intends to get the highest ROI to maximize the revenue earned by the company. The company invests a significant amount of time to obtain relevant information regarding the business environment by identifying the market size, buying habits, current trends, market growth, etc. The marketing strategy consists of effective market penetration by offering lucrative choices to budding entrepreneurs who look for a lesser rate of interest on mortgages. The strategy of market penetration will aid the company to expand its services in new and emerging markets. The company also utilizes effective product development to help customers differentiate between the services of the company from other competitors. Developing new services will enable companies to improve its services in the existing market (Qureshi & Sokobin, 2015).  
5. Market Segmentation
5.1 Target Market
Target Market(s): According to Joia, Gutman Moreno (2016), business organizations conduct customer analysis to break down a given market into various groups of customers. The company targets entrepreneurs of business organizations who require financial assistance to facilitate its production process. Appropriate market segmentation helps companies to divide a given population into subgroups which help Easy Brokerage to understand the preference and requirement of the clients.

Who is your ideal client? Entrepreneurs of small and large scale business organizations
How well do you know and understand your chosen target markets? The marketing department of Easy Brokerage conducted the intensive as well as extensive market survey to have a better understanding of the chosen target market by utilizing a diverse range of digitally printed material.
How well do you understand their lending needs? Budding entrepreneurs and business enthusiasts require an additional source of fund to set up their organizations. Establishing channels of communication will aid the company to directly contact the lender of their choice.
Are there ways to segment your market so you can offer highly specialised products to specific groups reflecting their individual needs? The business utilizes multiple marketing tools such as segmentation trees, cluster analysis, lifestyle segmentation and ZIP Code Research to identify the entrepreneurs who will provide the company with maximum revenue.
Table 5: Market Segmentation
(Source: Created by Learner)

6 Market Positioning
Easy Brokerage dedicates a significant amount of time in preparing attractive business strategies for attaining the desired revenue from the Australian market. The company utilizes multi-segment positioning to attract customers from different segments of the society. While most financial firms implement mono-segment positioning to target high-end customers with a higher disposable income, Easy Brokerage intends to generate maximum sales by making the most of mass marketing. Multi-segment positioning helps the company to attract budding entrepreneurs, individuals who require home loans, students who require the educational loan, etc. The flexibility of the brokerage companies to provide loans according to the types of loan required by the customer increases customer engagement and initiates word-of-mouth that differentiates the services of the company from other brokerage firms (Hill et al., 2014).  
7. Marketing Tactics
As a firm that operates in the field of mortgage brokerage, the company has developed cutting edge tactics that include artificial intelligence to attain data-driven creative channels of marketing. The company implements targeted market segmentation to increase its efficiency and drive positive associations with retargeting and motivating marketing strategies.
7.1 Product Strategy: The company implements cost leadership strategy to keep the cost of their services low to attract potential clients. Emerging as a cost leader will increase the savings of the consumers and help in the promotion of the services by providing residential mortgages, commercial mortgages, leases, personal loans, etc.
7.2 Service Strategy: The service strategy targets the professional market by setting up meetings with potential clients in their offices or workplaces. The company provides the potential clients with branded compendium that highlights the services provided by the mortgage brokerage firm.
7.3 Pricing Strategy: The firm charges minimal brokerage fees for its services and eliminates biases related to various charges related to commission. The firm incurs referral fees for introducing its services with alliances in the Australian market.
7.4 Distribution Strategy: As per Coleman (2017), having a strong online presence helps the companies to increase customer engagement and justify the charges that the company charges in return of its financial services. The challenges of being located in a specific geographic location are eliminated by maintaining a comprehensive online presence that highlights the services provided by the company.
7.5 Promotion Strategy: The company intends to make the most of popular advertisement channels such as television, internet and radio. Brochures and pamphlets are cost effective options that are manually distributed at specific financial agencies inform potential clients.
7.6 People Strategy: The firm trains its employees with marketing messages to gain a competitive edge. the management of the company establishes effective channels of communication with the staff to develop marketing initiatives and generate attractive marketing ideas to target the chosen market segment.

8 Research
Conducting successful market research is daunting for the brokerage firm. It can range from being stressful, confusing and costly. The company has devised a comprehensive database by selecting the best fit approach while launching a new project.
8.1 Consumer Research: The firm uses analytical tools such as regression models and analytical tools to overcome the collection of flawed data. Methods such as conducting online survey, online data collection and market survey helps in obtaining relevant insights regarding a given market. Implementing the findings of the research helps in the identification of potential clients (Cavusgil & Kleimenhagen, 2015).
8.2 Market Research: To conduct market research, Easy Brokerage uses the data from the past to predict the market scenario of the future. With predictive modeling, he future outcomes of the company can be analyzed to channelize the activities of the business and safeguard the business from unrestrained claims.

9 Consumer Behavior
Analyzing consumer behavior is integral to the activities of a successful brokerage firm. Consumers form the effective service-scape in the marketplace of a brokerage firm. The consumers of a given target market often tend to prefer a brand that meets their financial requirements. Easy Brokerage should obtain feedback from clients to have a better understanding of their expectations. The features those are most appealing to the clients such as prompt sanction of loans, lower rate of interest, etc. will help the company to challenge brand impulsiveness in consumers (Cacciolatti & Lee, 2016).

10 Marketing Budget
In order to gain maximum benefit from marketing activities, Easy Brokerage conducted a thorough evaluation of the internal and external factors before developing an effective marketing budget.
Marketing Budget Plan of EASY BROKERAGE
Categories Quantity
Unit Cost Subtotal

Research
Research based on web 2 $ 150.00 $ 300.00
Other research 1 $ 600.00 $ 600.00

Total $ 900.00

Advertisements
Web 1 $ 200.00 $ 200.00
Radio 5 $ 150.00 $ 750.00
Brochures & Templates 500 $ 0.15 $ 75.00
TV 4 $ 1,500.00 $ 6,000.00

Total $ 7,025.00




Promotions
Special offers 100 $ 1.75 $ 175.00
Product discounts 120 $ 1.25 $ 150.00

Promotions Costs Total $ 325.00


Public Relations
Advertisement 2 $ 150.00 $ 300.00
Sponsorship 3 $ 100.00 $ 300.00
Employee promotions 5 $ 25.00 $ 125.00

Public Relations Costs Total $ 725.00

TOTAL MARKETING BUDGET £ 8,975.00
Table 6: Marketing Budget of Easy Brokerage
(Source: Created by Learner)

11 Evaluation
The Marketing Budget of Easy Brokerage was based on financial insight gained from the revenue and expense data of the previous year. The company reviewed its organizational goals for 2017 and allocated a specific budget that will be implemented in deciding and formulating marketing strategies that will aid in the promotional activities of the brokerage firm. The quality of the marketing tactics was analyzed to generate promising leads (Babb & Cone, 2015). Return on investment was compared in accordance with consumer lifetime value (CLV) and customer acquisition cost (CAC). The company evaluated the manners in which the existing competitors spent on developing effective marketing strategies and leveraged the gap by reducing the associated risk factors in the given market. The company utilized digital audit to obtain relevant data in order to identify the average sales cycle of each financial service as a mortgage broker of Australia. 
12 Implementation Plan
The implementation plan of Easy Brokerage was adopted by the company's Board of Directors. It describes the way in which a proposed plan will be deployed, installed and transitioned into an operational system of the firm (Allen et al., 2015). The implementation process began by adopting a policy statement based on the collection of real estate referral fees by conducting business meetings. Interference with brokerage relationships provides the company with guidance regarding licenses on multiple issues of referral fees. The implementation plan of Easy Brokerage consists of the following:
• Creating "first contact" or "reserved client" agreements between the broker and referrer and communicate all the details of the communication in writing
• Implementing service level agreements in the form of written agreements to manage a successful relocation by setting clear parameters (the agreement defines the policy of the business and serves as a legal basis of the payment of referral fees)
• The business process must address the existing relationship of customers with broker-dealers

Exercise 4:
1. List at least 5 points that are important to ensure communication delivers on customer needs, expectations and priorities.
Listen actively: The management and the employees are required to pay attention to the interaction that takes place between them and the customers, thy need to pay attention to the details about the needs and requirements of the customers, so that the expectations of the customers could be fulfilled.
Be sensitive towards the difference of the technical knowledge:The customers may not beware about the technologies or the technical term that is used by the employees the employees should ensure that they communicate with their customers in a manner that is properly understood by the customer so that the communication can be enhanced and satisfactory (Šeric et al., 2014).
Pay attention towards the misinterpretation of words or phrases: The employees should be provided with proper training so that they can communicate with their employees in a proper and effective manner so that the misinterpretation of words does not take place.
Avoid negative responses: Certain negative sentences and questions should be avoided by the employees the employees interacting with the customers should be polite and positive; the employee should patiently listen to the needs and requirements of the customers and collect feedbacks for improvement.
Avoid interruptions: The employees should be attentive and ensure that they do not interrupt the customers unnecessarily; unnecessary interruption can irritate the customers.
2. It is important that staff should deliver an outstanding customer experience at all times. What are the specific behavioural competencies that this requires and how would this be measured?
Competency is referred to the ability of an individual to perform, their skills, capacity and knowledge possessed by them. Competency requires an appropriate attitude that helps to improve the behavior and performance of the employees (Omar et al., 2014).
The factors that are required to be considered in order to determine appropriate competencies:
• Level of responsibilities, authorities and the decision making skills.
• Level of inter personal skills
• Level of customer interaction
• Level of skills and knowledge possessed
The major categories of the competencies are:
• Communication competencies
• Cognitive competences
• Supervisory competencies
• Administrative competencies
3. Using information provided in Unit 2, it is important that an organisation continually improves. How might an organisation collect information to facilitate this?
It is important that an organization must improve their performance as well as business this can be achieved by:
1. Training and development: The management should provide the required training to their employees that will assist in enhancing the knowledge as well as the skills of their employees that will help the employees to deliver excellent customer service.
2. Improving the sales: The training as well as the development process will help the employees to improve their sale as they can interact with the customers in an efficient manner.
3. Improving the quality of services: The management should focus to maintain the service quality of the organization that will help the organization in gaining the loyalty of the customers.
4. Employee satisfaction: The management should maintain rules and policy that helps in generating employee satisfaction that will encourage the employees to work with full potential and assist the customers that will help in improving the working conditions of an organization (Boukis et al., 2015).
4. There are many laws that regulate the way businesses may provide service to a client. Why is this important and what is your responsibility?
The laws that determine the operation of a business are very important and must be followed by the organization as it ensures the smooth functioning of the organization. The management and the authority of an organization are responsible to maintain the policies and the laws that are implemented in the organization.
5. Write a short guide regarding customer service that you would use, as a mortgage broker, to look after a customer.
Identify and clarify customer needs and expectations: It is important to enquire the customers about their requirement so that the broker can understand the budget and the need of the customer.
Assess the urgency of the request: It required understanding about the urgency of the requirement that will help n understanding about the timeframe within which the customer requires the service to be completed.
Determine priorities for service delivery: The details that are provided by the prospectus help in understanding about the priority of the service that needs to be delivered so that the broker will be able to arrange the delivery as per the schedule.
Inform the customer of possible choices:After identifying about the needs of the customer and understanding about the timeframe of the requirement the broker can provide different choices to the customers, the customer will have many options to choose from which the customer can select the service as per their needs and requirements (Laudon et al., 2016).
Assist in the selection of the preferred option: The broker should provide the details about the properties or the service that will be availed by the customer this will help the customer in taking a correct decision that will be beneficial for the customer.
Address what action you would take if you were unable to satisfy the customer need: If the customer is not satisfied the broker should try to provide examples and provide assurance to the customers that will help in satisfying the customer.
Seek appropriate assistance where appropriate:If the broker is unable to assist anything, in particular, he should take the assistance of his sales executive or another expert that can convince the customer with their experience and knowledge.
Provide prompt service to customers: The customers should always be provided with different options so that a deal can be closed with that customer.
Establish and maintain rapport with customers: The broker must maintain a good relationship with the customer so that the customer can feel comfortable and share their details with the broker.
What action might be taken if there was a complaint: If the customer is not satisfied and there is any kind of customer complaint, the complaint must be given priority, and the issue must resolve to that customer satisfaction can be achieved.
Provide assistance should there be a specific need: If the customer is facing any kind of issue or difficulty then assistance must be provided by the organization.
Propose cross-selling opportunities that may be apparent: The broker must be aware of the potential and interest of the customer and should offer relevant offers or services that can be sold to a particular customer
Seek customer feedback: The management and the broker should always ask their customers to provide feedback about their services or counselling so that they can understand about their services and the requirements of the customers (Liu et al., 2015).
Review customer satisfaction: The management should maintain a review about the satisfied customers this will help them in gaining loyal customers.
Use feedback to improve customer service: The feedback that is provided by the customers must be used by the organization in order to enhance their services so that they will be able to provide maximum customer satisfaction.
6. Detail some clear recommendations on how to improve service delivery to prospective customers.
The service delivery is one of the most important factors that help in improving the customer base of an organization. The service delivery can be improved by hiring efficient employees and maintain the record of the purchase date of the customers the organization should deliver the product on the said date so that the customer can have trust in the organization and the organization can gain the loyalty of the customer. The organization must keep its words and promises that it makes to their customers. The products that are promised and described to the customer should be delivered as it was described the quality must be maintained so that the customer can have a good experience. The management must take feedback from the customers that will help them in improving their services and meeting the expectations of their customers.
7. Using the information in Unit 11, before a mortgage broker attempts to handle an objection they must first determine what kind of objection they are dealing with. There are three common types of objections. List the three objections and provide a brief explanation of each one.
The three most common objections of the customers are:
1. Price:The most basic objection of the customer is that the price range of the product or the service is quite high or the price is not accurate as per the quality of the product or the service.
2. Authorization: It is often noted that after a good and brief proposition the prospectus can say that they do not have the authority in order to purchase they will have to speak to their heads or the supervisors In order to take a particular decision (Karpenko et al., 2016).
3. Requirement: After a proper discussion about a service or the product the prospect might reply that they do not need that certain product or the service as they do not have the need.
It is important to overcome the objections of the customers so that the sale of the organization can be increased and the market value can be enhanced.
8. Using the information in Unit 12, there are four main personality types a mortgage broker may have to deal with. List the four types and provide a brief description of each.
The four main types of mortgage lender are as follow:
1.Retail and wholesale lenders: The major wholesale lenders are banks or certain institutions that do not directly with the customers but offer their services or loans with the help of a third party such as credit union, mortgage broker, other banks and more. The retail leader's issue mortgage directly to the individual customers. They can lend their own money or even act as an agent in order to lend (Gibbs et al., 2016). This function may be carried out by a financial institute that can offer different services such as offer commercial, wholesale lending, institutional and other financial services.
2.Portfolio lender: These lenders use their own money in order to make different home loans that are maintained by them in their own books, or the "portfolio", as they are not required to satisfy the demand of the outside investors. They set their own terms for the loans that are issued by them.
3. Direct lender: A direct lender originates their own loans with the help of their own funds or with the help of borrowed funds.It can be a portfolio lender or a mortgage banker. They do not act as agents for the wholesale lenders.
4. Correspondent lender: The correspondent lender is defined as what happens after a particular loan has been issued. They work with the investors known as a sponsor that purchase mortgage after meeting certain criteria's. The correspondent lenders earn their money with help of points that are collected by them after the mortgage has been issued.Selling loans to sponsors garments that they will make money as there is no risk for the default carried out by the correspondents.
9. Using information in Unit 12, there is a five-point plan to successfully establishing networking, list the five prescribed methods.
Establishing network is required in order to increase the business, few of the steps that can be adopted by the broker that can help in increasing the business are:
Identify the values: The broker practices can be started by creating a NOC. The broker should monitor their visitors; the broker should ensure their customers that he cares about the services or products that are sold by him.
Developing network: the broker should build the network of VARs or refer different partners so that they are able to work together so that the business can be increased (Xia et al., 2015).
Identify the flaws: The budget should be set and maintained the infrastructure should be maintained but as per the decided budget so that the organization is able to earn the profit.
Increase the network: The broker should try to reach out to local party so that he can increase the business opportunities and the organization can build its image.
10. Using the information in Unit 4, list four different sectors of the financial services industry and describe how they interrelate.
The four sectors of the financial industry are as follow:
1. Insurance companies:A company which provide insurance or sell insurance which may be profit, non-profit or government-owned that company is called the insurance company.
2. Accountancy companies: A firm where accountant provides accounting services or auditing services for clients by charging fee (Pagliari et al., 2014).
3. Consumer- finance companies: A financial institution which provides all type of loans directly to the consumers by charging higher interest rates than the banks to those consumers who are not able to secure bank loans.
4. Stock brokerages:A stock brokerage is a type of individual that is associated with the broker-dealer or a brokerage firm who sells or buys stocks and other securities for both institutional as well as retail clients.
11. Name five things you can think of that may make your current or future business more environmentally sustainable (the business can be your own or the business you will, or would like to, be working for).
The five practices that should be adopted by a future business organization that will help in making the business more environments sustainable are:
1. Print less paper: Papers contribute to about 35% of the waste stream; the waste can be reduced by using less paper for printing purpose. Brokers should try to use emails or other such technologies that will help in reducing the usage of paper (Zelenski et al., 2015).
2.Building green office: The office can be building green from the floors to the skylights. The material can be eco-friendly; there are many flooring options available that are, made from renewable material. Windows can use bamboos or hemp that will contribute to eco-friendly materials.
3. Contribute to recycling programs: The papers, as well as bottles cans and other such substances, can be renewed; however, the companies should also focus on the e-waste that is toxic to the environment. The old electronic materials should be recycled the companies should adopt policies to recycle the electronics.
4. Work with similar companies: The different business firms that are adopting the green program or certified green should work together and coordinate that will help the firms in maintaining their sustainability in an efficient manner.
5. Taking proper initiative: The management of the business firms should place proper paper recycling bins in various locations within the office so that all the employees can throw the waste in proper place and not generate waste.
12. List 10 documents required for an ACL application. You may need to refer to the Appendix 10.
The 10 documents that are required for an ACL application are as follow:
• Compliance Plan
• Compliance Calendar
• Complaint Register
• Credit Representative Manual
• Adequacy of Resources Policy
• Dispute Resolution Policy
• Document Retention Policy
• External Service Provider Register
• Hardship Policy
• Marketing Checklist
13. Visit four different bank's websites, list one loan product from each website, and list the key features of each of those products
The ANZ Australia bank provides Home and Content Insurance:
They help in providing loans for individuals planning to build a or rent a home they help in protecting the home as well as the contents of the home in cases of accidental breakage or natural disaster so that the individual gets support and coverage.
Auswide Bank: This bank provides car and personal loans for their customers
BOQ Bank: This banks provides travel insurance to their customers, they help to cover medical treatment, stolen passport, lost luggage. The travellers can travel stress-free as the bank helps and support them in their travel.
BankVic: This bank provides students loan for the educational purpose so that the students have a bright future.
14. Using the steps provided in Unit 9 Practice Activity 1 ‘Calculating Borrowing Capacity', determine what this client can borrow, at an interest rate of 5%, qualifying rate of 7%,a loan period of 25 years, on salaries of Mr X $105,000 gross per annum and Mrs X $47,000 gross per annum, they have two children. They have credit cards of $10,000 limit and a personal loan of $25,000 at repayments of $600 per month. (Tip: if you include your calculations we will try to understand whether your final result has been achieved correctly).

Yearly Monthly
Interest Rate 5 % 0.416667
Qualifying rate 7 % 0.583333
Loan period 25 yrs 300 months
Salaries of Mr.X 105000 8750
Salaries of Mrs. X 47000 3916.667
Total 152000 12666.67
Credit cards 10,000 833.3333
Personal loan 25000 2083.333
Repayment 600 /month
Interest 2604.16667
Maximum paid amount on a monthly basis 9229.16667
Borrowing capacity ? -22,150.00

15. Employability Skills The topics below refer to the basic employability skills you need in order to carry out the duties of a finance broker. You are required to complete a short statement on each employability skill below to demonstrate how you believe each employability skill will reflect on your employability.
COMMUNICATION - Communication is the most important skill that is required by a finance broker. The communication skills will assist the broker to interact with their customers. The broker can efficiently communicate with their employees or other important members with the help of good communication skills (Sabee et al., 2016).
TEAMWORK - The financial broker is required to be good at team works if the customer is not satisfied with the information the broker should be able to approach the correct person that will help in convincing the customer. Teamwork will help in organizational growth.
PROBLEM SOLVING -The financial broker should be able to resolve issues and complication that takes place within the organization this will help in maintain the smooth operations of the organization and help in improving the work culture of the organization.
INITIATIVE AND ENTERPRISE - The broker should take necessary initiatives that will help in increasing the business of the organization, the initiative can also help in providing customer satisfaction that will improve the revenue generation of the organization.
PLANNING AND ORGANISING - The broker should be able to plan all the expenditure and balance the budget that will help in increasing the profit generation. The planning and the organizing will help in maintaining the schedules and the chances of complications and issue can be resolved.
SELF MANAGEMENT - The broker should be confident and able to elf manage so that the broker possess the capabilities of carrying out all the responsibilities and roles that are required by him.
LEARNING - The broker should be able to learn new things and that will help him in coming up with the latest developments and assist him in adjusting to the new situations.
TECHNOLOGY -The latest technology help in easing the work process so the broker must be able to handle and understand the new technologies and should be able to manage the technologies.

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