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What are lenders doing to invest in their BDMs?

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Australian Broker | 30 Oct 2014, 08:26 AM Agree 0
Business Development Managers are the face of the lender for brokers, so it is crucial that banks and non-banks are investing into their BDMs
  • Anonymous BDM | 30 Oct 2014, 09:05 AM Agree 0
    To all brokers out there who value a strong BDM that can assist them in growing their business through absolute commitment - what do you believe the income level of a good BDM shoud be, how much should we earn?
  • John | 30 Oct 2014, 09:10 AM Agree 0
    BDMs can be great for a broker, but most are not time savvy.
    Lenders should be letting their BDMs do what they are meant to do, which is develop relationships. Unleash them and let them do the job you have hired them for. The perfect BDM would be a broker who has had success, as they know what the broker requires.
  • Tom | 30 Oct 2014, 09:37 AM Agree 0
    A BDM should be paid commission only. Their income would then be indexed to the strength of their relationships and performance. The same as a brokers is.
  • Regional Broker | 30 Oct 2014, 09:48 AM Agree 0
    BDMs can be great if they try and listen and advocate when needed.

    CBA have brought in a concept of desk bound BDMs which we can never seem to contact! Why even bother!

    Strange about Westpac - being in rural Victoria I've never seen a commercial or consumer BDM, they must lack a GPS.

    I must say the smaller banks and non bank lenders have very good BDMs.
  • Nick | 30 Oct 2014, 09:53 AM Agree 0
    A good BDM should be able to take calls at least on a Saturday. This would be a great point of difference.
  • Moss Stehbens | 30 Oct 2014, 09:54 AM Agree 0
    No point cutting down the work load for the BDMs when the lenders push it back onto the mortgage advisers to complete the tasks.
    Seen many changes over 27 years.
  • Ex-BDM, now Broker in SA | 30 Oct 2014, 10:04 AM Agree 0
    Seriously, qualifications make a good BDM? The ability to use logic to over-ride dumb credit decisions is something that doesn't come automatically once you gain a qualification.
  • Peter Heinrich | 30 Oct 2014, 10:09 AM Agree 0
    There are two sides to this issue. The first is that generally there are too few BDMs per broker. BDMs can look after from 50 to 80 brokers to over several hundred. Generally they are spread far too thinly.

    The second problem is that often brokers will ring a BDM as a first choice rather than check a website or ring an office for support. Of all the calls BDMs receive a huge percentage of them could have been answered elsewhere. I'm not sure there is an answer but a good starting point would be more BDMs or less brokers per BDM.

    The correct role for a BDM should be to acquire new brokers and assist them to get started and secondly assist existing brokers build their business. In reality they spend a huge amount of time trying to assist and answer questions regarding matters that should be asked elsewhere or declined straight away.

    Most really good BDMs are like politicians. They work unbelievable hours but are pilloried by 50% of the people they look after. There are some really excellent BDMs who try to get the balance right but I fear they will never really win over everyone.
  • Broker | 30 Oct 2014, 10:39 AM Agree 0
    The main reason I ever need to contact a BDM is to fix bank internal stuff ups!
  • John | 30 Oct 2014, 11:04 AM Agree 0
    To Peter Heinrich, the reason they receive so many calls, is that the call centres tell us to call your broker. They are the ones who need to be up trained and to be able to make decision, not had ball

    Lenders want our business, but most give crap service
  • John Broker | 30 Oct 2014, 11:27 AM Agree 0
    As I see it, my job as a broker is to find the right lending solution for my client, present the application to the recommended lender as complete as possible with all supporting evidence, manage the process up to settlement, and then provide ongoing care. For that, I will be paid a commission for my efforts, and hopefully my clients will reward me with loyalty.

    The lender's role is to help facilitate all of the above in a timely fashion and provide effective communication throughout the process - this is where it usually falls down.

    Enter the BDM. Their role, as I see it, is to provide specialist advice on policy, educate us to an extent about their products and value proposition, assist with scenarios, negotiate with their credit team on rate etc, and act as an occasional intermediary between the broker and the credit/processing unit.

    In my experience, it is like winning lotto to actually get a BDM answering their phone. The usual process is leave a message and wait, and wait, and wait. Sometimes hours, sometimes days - even after repeated messages. I've already determined that their lender is the preferred destination for my client, or at least I think they are after having tried reading their on-line policy guidelines. I sometimes just need some further confirmation which their broker hotline couldn't assist.

    In my latest example it took six hours for the returned call, and four days after speaking to the BDM to get an answer on a simple request, because the BDM was not aware of a policy change. Oh, and did I mention that this is an award winning BDM.

    Not sure that we need more BDMs, or at least, not more of the same.

    For all of that I dare not complain, otherwise the 'service' might be further compromised, my client and I will be the only losers.
  • Coast Broker | 30 Oct 2014, 11:56 AM Agree 0
    The problem there is there are very few good BDMs that love their job. They have too many brokers to look after. The sign of a good BDM is one that will send out an update every week that may just highlight some important changes or niches that their employer has made or to remind us of. At least by getting an email every week you remember them.

    I do a similar email every Friday with my referrers. It does not take much time to do, however it needs to be done by the BDM and not an auto generated email from the lenders marketing department.

    A previous CBA BDM I had not only would do a weekly email in their own words, but he still sends me an email wishing me a happy birthday on my birthday and he has not looked after my region now for at least 3 years. He made a point of noting a brokers birthday when he first meet the broker.

    Another problem I see a lot with BDMs is when you get them involved in an issue once and they forward the email on to get the matter escalated and resolved through the bank's correct channels, they then seem to forget about following up to ensure the issue has been sorted.
  • John | 30 Oct 2014, 12:19 PM Agree 0
    Anonymous BDM, why would you want to put a limit on your earnings?
  • Papery | 30 Oct 2014, 01:00 PM Agree 0
    John Broker & Peter summarised it very well.
    I think the lenders should be doing more to get their broker websites right, especially the policy & product basics...

    Special shout out to Westpac & ANZ... NAB should pay attention too! Seems the smaller guys are on the right path with very clear & succinct downloadable cheat sheets & the like.
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