Financial advice gaining traction for mortgage franchise

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A financial services franchise has seen its revenue from financial planning grow by nearly two-thirds over the last year.

In its interim results released yesterday, Mortgage Choice said its financial planning net revenue frew 63% from the first half of FY15 to the first half of FY16. The company's CEO John Flavell said the cash result for the financial planning business grew 22% compared to the first half of last year.

"This result delivers on the target we set for ourselves and I remain confident that this business will start to be profitable on a monthly basis by financial year’s end," Flavell said.

Flavell said the company's financial planning network was gaining traction both with consumers and the franchise network's brokers.

“We have seen a significant increase in both the number of referrals going to our financial advisers as well as the number of brokers referring business. Growth in financial planning referrals has been and will continue to be a key focus for us and I believe we will continue to see significant growth in this area."