Why brokers should strive to diversify

Mortgage Introducer sat down with Gerard Boon (pictured top), managing director of Boon Brokers, who has swiftly established himself as a forward-thinking force in the mortgage sector. Since qualifying as a mortgage and protection broker in 2017 during his university placement, Boon has channelled his passion for innovation into building a fee-free, technology-driven brokerage from the ground up. In this exclusive interview, Boon reflects on the industry’s digital transformation, the power of accessible online education, and the importance of adaptability in the face of rapid market change. 

Full name: Gerard Boon
Job title: Managing director
Company: Boon Brokers
Number of years in the industry: 7
Location: Norfolk

How and when did you become a mortgage broker?

I fully qualified as a mortgage and protection broker in 2017, during my year-in-industry placement while studying at the University of Leeds. I was undertaking a degree in business management. During that year, I researched the mortgage industry and identified areas where significant improvement was needed. This sparked a desire to join the industry after graduation and create Boon Brokers.

In my final year at university in 2018, I wrote a dissertation titled “Artificial Intelligence in Financial Intermediation: An Investigation into the Prospects of Robo-Advice Developments for Independent Mortgage Brokers in the United Kingdom”. After graduating, I created and implemented a business plan for Boon Brokers. The mission was to create a whole-of-market, fee-free brokerage that leveraged technology to deliver excellent advice and arrangement services for clients online.

In your opinion, what has been the most positive development in broking?

The most obvious positive developments are around technological advancements—especially in AI and APIs. However, I believe the most important development has been the rise of easily accessible online education for mortgages. Since 2017, when I first researched the industry, there is now far less information asymmetry between clients, brokers, and lenders. The industry has done an excellent job of creating detailed content on all aspects of the mortgage advice and arrangement process.

At Boon Brokers, we typically create at least a couple of new articles per day with the objective of educating potential clients about the industry. We have over 330 articles across the website, which are visited by thousands of people daily.

What challenges do you see currently facing the industry, and what solutions would you propose?

In my opinion, the most significant challenge facing broker incumbents in our industry is the rapidly evolving digital needs of clients. The vast majority of brokers in our industry are still classed as ‘micro-entities’, meaning they operate as sole traders or with just a handful of staff. These brokers tend to rely on outdated operational processes, with many still dependent on face-to-face appointments. Since the pandemic, we have seen a significant shift in client behaviour regarding the consumption of professional advice.

Many clients now prefer online consultations, automated correspondence, and the use of mobile applications, compared to traditional practices in the industry. There is still a clear need for human advice from regulated brokers, but we have noticed an increased demand for utilising technology in our processes. For many incumbents, especially micro-entities, adapting to the technological needs of the market will be a struggle. However, for their own survival, I would advise that they make this a priority in the short, medium, and long term.

Can you share a memorable or challenging experience from your career as a broker and the lessons you gained from it?

When interest rates increased rapidly following the pandemic, we had to quickly shift our business model. Equity release and buy-to-let business, which represented approximately 30% of our revenue at the time, collapsed almost overnight. We adapted swiftly and spread our risk by introducing more services and developing our income streams.

Since then, Boon Brokers has had far more income streams and is not reliant on the success of any one service. I quickly learnt that to run a successful business in the long term, business owners should constantly strive to diversify and generate multiple income streams to minimise the risk of exposure when market demand fluctuates.

Could you share any valuable advice for individuals aspiring to become brokers or those new to broking?

Always go above and beyond for your clients. If you deliver exceptional service, clients will naturally want to refer you to their friends and family. Word-of-mouth traffic is the most powerful marketing channel in our industry, and the best way to maximise it is to strive for excellence.

Once you achieve excellence, ask your clients to leave genuine reviews on a verified platform like Trustpilot. These reviews act as a pre-qualifier of quality for prospective clients, which should amplify your business further.

Broker in Focus is a weekly Mortgage Introducer feature, spotlighting mortgage brokers from diverse backgrounds and locations across the UK. Among those recently featured are Malcolm Wright of Mainly Mortgages, Matthew Fleming-Duffy of Knight Frank Finance, Siobhan Holbrook of Mortgage Light, Oliver Woodason of Woodason Financial Services, Derek Watson of McGill Mortgages, John Tibble of Aspire Financial Planning, Aaron Scott of Try Financial, Sam Rose of TR Financial, Richard Bousfield of The Surrey Mortgage Broker, and Paul Hampton of Approved Mortgage Solutions.