Homeloans business development manager, Tom Wells, says “fledgling” brokers are different to new entrants pre-NCCP, which is why some lenders have started to view them as an investment opportunity, rather than as a risk.
Wells, who has worked closely with Loan Market’s Queensland Brokers Academy cadets, says they have generally approached becoming a mortgage broker as one would consider a new business venture – investing in themselves to complete the required level of training and creating well-developed business plans, marketing plans and financial plans.
He says there are actually a few things that some more experienced brokers could stand to learn from new entrants.
“There are many experienced brokers who could make significant productivity and efficiency improvements in their business, if they were prepared to invest in themselves and their businesses.”
He says new entrants have a fresh, positive view of the industry, without any of the prejudices that may have developed in more seasoned minds over the past decade.
“They are not reliant on existing trail, so they are focused on attracting and settling new business, with upfront commission being their primary source of cash flow.”
He also says there’s a greater acceptance of technology and social media, as well as a heavy focus on finding new potential clients.
There are still very good reasons to stick to established brokers, Wells says, pointing out that the investment is more long term with new entrants and that there are likely to be a few hiccups along the way.
“You need to be prepared to go the distance, without expecting short term rewards. If you consider that these new brokers are commencing their apprenticeships…you have to expect that there will be a lot of questions over a long period of time.”
Queensland Brokers Academy says they’ve seen a high level of lender interest in their cadets this year, including representatives from NAB, St George, ANZ and Suncorp.
But Wells says the reason Homeloans is dealing with them is the fact that they represent a new generation, with fresh ways of thinking and a more optimistic viewpoint.
“This is not an exercise to turn a profit ," he says, "it is an investment in the future.”