Task 4 — Products and services

The financial services industry is very competitive, with many organisations offering a number of different lending and transactional products and services. 

Organisations use a variety of approaches to market and promote their products and services. 

It is very important that brokers are able to determine the right product and service to meet the needs and requirements of their clients. 

Some clients like to be able to combine their lending products with other banking products and services. While it is important to have a thorough knowledge of lending products, it is also important to be able to identify other relevant products and services to accommodate your client’s needs and requirements.

Task 4: Question 1

Using the information in the topic notes in conjunction with your own research, complete the product knowledge table below.

Task 4: Question 2

Conduct your own research on current home loan industry trends. Provide a minimum of three (3) current trends. (50 words)

Task 4: Question 3

(a) How do financial service providers market and/or promote their products and services? 

(b) Where can you locate a lending organisation’s current promotions and specials? 

(c) Describe how you would identify clients whose needs match products and services that are part of a current promotional strategy.

(d Describe how you can keep your product knowledge up to date. Include the methods and/or systems you could use to maintain product knowledge. 

Task 4: Question 4

The Australian Banking Association’s (ABA) Banking Code of Practice (BCOP) outlines several obligations for the provision of financial products and services. The Code can be downloaded from the ABA website. 

(a) List at least two (2) items of information that must be provided to a client when providing financial products and services.

(b) Refer to the items you listed in part (a) and explain what the items clearly set out.

(c) What four (4) factors does the Code advise about providing banking services to vulnerable clients?

(d) According to the BCOP, how would you identify (become aware of) a potentially vulnerable client and a client on a low-income?

Task 4: Question 5

What is a deposit bond and when would it be suitable for a purchaser to use this product?