Community and Corporate Financial Services (Comcorp) is one of only a number of dealer groups in the country to use credits unions as a referral base. From its humble beginnings in Mount Isa, providing advice to clients of the country credit union based in the mining town, the group has slowly but surely increased its reach so that it now has advisers stretched along the east coast — from Weepa to Melbourne.
Chief executive officer Mick Dunne, who reached the level of Commodore after a 35-year career in the Royal Australian Navy, explains that a newly-adopted business model has been responsible for the group’s growth rate during the last two years, and its fifth-placing in our list of fastest growing dealer groups.
“What we do is use the credit union employees to talk the whole financial planning spectrum — to provide advice up to a certain level and to a certain complexity. If a client wants a gearing plan or an self managed super fund, they are then referred to a ComCorp adviser who is more experienced.
“We train credit union employees in each of the branches that we look after. We train them to give advice on certain products, so basically we have to get them licensed.”
Dunne says the process means more interest is generated in the credit union, as they are able to provide financial planning on a low cost basis. Revenues are generated for Comcorp in the form of both referrals, and a commission split agreement with each credit union.
In comparing the service provided by ComCorp to that available from the banks, Dunne highlights the independent nature of the products on offer. “We do it a little bit better. The credit union doesn’t sell its own products because they don’t have them available. What we do is cherry pick what we think are the top products on the market to suit the type of client.
“We have got the independence to use ING or Colonial or whoever we think is appropriate.”
Dunne says it took the group about a year to convince their credit union partners of the viability of the new model. “It’s really kicked off in the last nine months, and we’ve had requests from other credit unions who would like us to do a presentation to their board.”
With clients including the Qantas Staff Credit Union and the Queensland Country Credit Union, ComCorp now has access to over 400,000 members, and further expansion is in store. “The model has been very successful, and we are now growing on a monthly basis.”
