YELLOW BRICK ROAD HOLDINGS LTD 
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Yellow Brick Road Holdings Limited (ASX Code: YBR) ("Yellow Brick Road") has announced a major uplift in their wealth management business, with non-mortgage revenue equalling 32 per cent of total revenue, up from 7 per cent in July 2011.
Wealth Management revenue has increased at compound rates of 206%+ per annum, on top of lending revenue which has increased at compound rates of 63%+ per annum. Whilst the business is still young, the steady progress over the past two and a half years will accelerate over time as the network continues to grow and the branches become more mature.
With the help of strong banking partnerships, Yellow Brick Road has developed a product and service repertoire that rivals any financial institution, enabling all branches to provide a full wealth management offering. The company's business model is built on the ability of its branches to look at a client's entire financial situation, which means taking care of their mortgage as well as their other needs including insurances, superannuation, and financial planning. Therefore, the business relies on highly specific recruitment to bring on individuals that can service a growing demand for "big picture" personalised service in local communities.
"For the past three years we have been focused on building a recognised brand and distribution footprint that is entrenched in the hard working Australian communities that need financial advice and services the most," says Yellow Brick Road Executive Chairman Mark Bouris. "We have built our branch network based on a recruitment strategy that's unique to the industry. You can't come to Yellow Brick Road with 15 years mortgage broking experience and expect to do the same old thing. Home loans are an important part of our business but that's not what we're about. We are about the whole picture - the loan, the risk protection, the investment strategy and the retirement plan. When you walk into one of our branches, that's the kind of service you're going to get, and that's what sets us apart."
Yellow Brick Road's home loan business still makes up the majority of the revenue, and the company has built a home loan book worth $2.2b in just over three years. However, the growth in wealth management versus lending is above trend because the wealth management market that Yellow Brick Road facilitates is completely underserviced. The major players that dominate the financial planning industry are focused on retirees, whereas Yellow Brick Road services middle Australians who are still well entrenched in their working lives. This allows Yellow Brick Road to grow alongside their clients and serve them wholly, from their first home loan right through to their retirement. Looking after Main Street, as opposed to High Street, is where Yellow Brick Road sees the opportunity, and where the business will continue to deliver their advice and services.
"When we started Yellow Brick Road, the pundits said we couldn't make a wealth adviser out of a mortgage broker," says Bouris. "It's something that our competitors have struggled with, and they said it couldn't be done. Yet here we are with the intellectual property to recruit, train, and accredit
individuals to provide the full spectrum of advice. It has taken us two and a half years, and at the end of 2013 we achieved our listing goal of growth in the ratio of mortgage to non-mortgage transactions through the branch network. We didn't do it on our own; it has taken the dedication and support of shareholders like Nine Entertainment Company to help build our brand, and other partnerships to help us to deliver our product to market. You can't take on the major players without some equally strong backing, and we are confident that with their support, we will continue to see this kind of growth for the next several years."
For more information, contact:
Chelsea O'Donnell
Head of Marketing & Communications Yellow Brick Road Wealth Management T 02 8226 8202
M 0414 704 033
E Chelsea.ODonnell@ybr.com.au
Yellow Brick Road is a group of wealth management and financial services companies headed by Executive Chairman Mark Bouris. Yellow Brick Road offers tailored advice and services to Australians wanting to build financial security for the future. With its extensive neighbourhood based branch network, Yellow Brick Road is committed to delivering accessibility, quality financial advice and competition in the market. For more information visit www.ybr.com.au
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