Strategy & Growth

The Client Retention Engine: Managing the "Refinance Cliff 2.0"

Why your "back book" is the primary battleground for 2026, and the automated system you need to protect it.

10.1 The Retention Battleground

As the potential for rate hikes in 2026 looms (per CBA/NAB forecasts), client retention will become the primary battleground for brokers.

The economics of broking are clear: the cost of acquiring a new client is significantly higher than retaining an existing one. Yet, many brokers focus 80% of their energy on new leads.

The Reality Check

Brokers must proactively manage their "back book" to prevent churn. In a volatile rate environment, silence is interpreted by clients as indifference.

10.2 The "Rate Creep" Audit Strategy

Banks rely on "customer inertia" and "rate creep," where the discount offered to a client erodes over time relative to new customer offers. To combat this, successful brokers implement an automated "Annual Rate Review."

1

Export

Filter your client list for loans settled >2 years ago. These are the prime targets for rate creep.

2

Compare

Check the client’s current rate against the lender’s "Best Available" new customer rate.

3

Act

If the gap is >0.25%, lodge a pricing request immediately.

4

Communicate

Deliver the good news proactively. Don't wait for them to ask.

Email / SMS Template

"Hi [Client],

I’ve just negotiated a 0.25% rate drop with your bank. This saves you roughly $80/month.

No paperwork needed—I just wanted to make sure you were on the sharpest rate possible."

💡
Impact Analysis This proactive service generates immense goodwill and referrals. MFAA data shows that brokers achieve an average 0.35% saving for clients who reprice.

10.3 Case Studies in Growth

Learning from award winners provides a blueprint for success. Two distinct paths to growth have emerged in the current market.

High-Touch Model

Focus Finance

Katie Thomas, winner of the 2025 Westpac Australian Broker of the Year, attributes her success to "genuine care" and high-touch service models.

Strategy: Aggressive Retention
Specialist Model

Green Finance Group

Daniel Green has built a dominant position by specializing in commercial niches like hospitality and childcare.

Strategy: Deep Specialization

The Lesson

Growth comes from either deep specialization (Green Finance Group) or high-touch retention (Focus Finance). Brokers should choose their lane and build their processes (and AI stacks) to support it.

Ready to lock in your back book?

Don't wait for the "Refinance Cliff" to hit. Start your audit today using the strategies outlined above.