Venkat Raman –
It is often said that accountants and bankers share the same passion of managing other people’s money and the same trait of being possessive of ‘their money.’
No one however questions their toughness and almost recalcitrant attitude, for, after all they are in the business ensuring sound finance management so that the ‘real owners’ become real wealth and job creators.
Financial Profilers
In more ways than one, mortgage advisors are people with their finger on your financial pulse. They know – or should know – your income, propensity to spend and potential to save, making up your financial profile. They determine your credit worthiness, and stake their credit with lending institutions in arranging your loan to purchase a property, be it to live, rent, conduct business or lease to a commercial or industrial activity.
Mortgage advisors are often accused of being ‘a thriving lot’, as if being successful is a crime. “If you are credit worthy and know how much you can borrow and repay, where is the need for such middlemen?” is a question that is sometimes asked.
The Middlemen
Sure, they are ‘middlemen,’ but without them there would be no such thing as knowing where, when and how much to borrow and more important how and how much, how long to repay. There would be no knowing as to how to save on interest and many other things.
Sooner or later, many of us need to restructure our loans to acquire more property or expand on the existing ones.
The Superlatives
There are many reasons, and in the case of Global Financial Services (GFS) Limited, at least 2.5 billion of them, to warrant their expertise and wisdom. Ask any major commercial bank or insurer in the country; you will be told that they are the largest among the Indian mortgage and insurance advisers and one of the largest across the sectors in New Zealand.
The Beginning
Like many businesses that sprout their wings later and become national phenomena or global players, GFS began 16 years ago in the garage of its owner Ajay Kumar.
Curiously, it was about the same time that Indian Newslink began under a similar setting.
The difference of course is that while GFS has grown large with more than $3 billion worth of mortgage loans arranged for its customers while this publication has largely remained small, battling with unhealthy competition. Comparisons may be onerous since mortgage broking business is highly regulated and subject to rigid codes of discipline, whereas the media is self-regulated, subject to poor governance and rests on shaky moral ground.
Back to GFS, Mr Kumar had three unshakable factors that helped him to establish growth: Experience (more than 25 years as a banker in India), honesty and self-confidence. Each of these qualities quickly multiplied to include integrity, transparency, accountability, community and social responsibility and the ability to form and lead a team of professionals and motivate them with the opportunity to grow with him.
Quality Service
In a fast changing world of technology and loyalty, retention of customers is often more difficult than securing them in the first place. How GFS has achieved not only a high rate of customer retention but also an increasing number of referrals through existing clients is an inimitable story of openness and choice. Every customer, whose application for a mortgage loan would stand the assessment and approval of the lending institution, would be required to (a) read, understand, approve and accept the terms and conditions of the loan (b) exercise the choice of the bank in order of preference (c) disclose the statements that are necessary to establish and maintain a close working client relationship (d) exercise the choice of allowing GFS to monitor their performance (e) enjoy the exceptional service provided by Mr Kumar and his team.
Unique Formula
The most important attribute that has been contributing to the continued success of GFS and its customers is the ‘Unique Formula’ devised by Mr Kumar enabling customers to repay their loan and become free from the mortgage bond quicker than the usual 30 years. The Formula has almost always worked. GFS is just 16 years old and many of its clients have repaid their original mortgage loans within this period.
“There are ways and means through which mortgages can be repaid faster, saving people hundreds of thousands of dollars. We have been able to help a majority of our clients to achieve this objective. Many of our clients have been able to obtain loans for purchase of second or third homes and follow the same process of early repayment,” Mr Kumar said.
“Not that every customer is able to achieve early mortgage liquidation. People earning less than $65,000 (individual or combined) would inevitably take longer. Our initial discussion with clients is to understand their financial status, their expectations, their propensity to save and repay the loan. We also explain to them the lending criteria followed by commercial banks. We try to help everyone but do not hesitate to inform those whose applications are likely to be declined,” Mr Kumar said.
He said that KiwiSaver is a great boon to those with low incomes who may not immediately qualify for a mortgage or be able to pay 20% of the property value as deposit.
Insurance Success
Insurance is another area that not has not only brought solace to thousands of customers but has also spelt enviable success to GFS. The Company has been providing insurance services since its establishment in March 1999 and thus far arrange for more than $2.5 billion insurance cover to thousands of customers.
“While many people say that they need insurance, they may not be fully aware of the nuances involved. They should understand why they need an insurance policy, who are they trying to protect and what are the products that are available in the market. At GFSL, we provide an obligation-free initial consultation,” he said.
As done in the case of customers who seek mortgage loans, Mr Kumar and his insurance team assess the needs of customers on an individual, case-by-case basis, types of insurance cover suitable, ability to meet premium payments and other obligations. More importantly, they enable customers to choose the insurance company and guide them through the process.
