The support and training of new brokers is vital for the health and future of the broking industry. It is also an issue that many brokers are passionate about improving.
When the MFAA announced the appointment of its new CEO last week, the one resounding issue which was highlighted by brokers when asked “what would you like to see the MFAA invest more in” was the support and training for new to industry brokers.
Graeme Salt, mortgage consultant at Origin Finance, says the biggest challenge for new to industry brokers is confidence.
“I believe the biggest challenge for new brokers entering the industry is the confidence to get out there and generate new business. It can be quite daunting to go out there and have the courage to ask for new business.”
Origin Finance offers an intensive 100 day mentoring program which focuses on building confidence for its new recruits, says Salt.
“A big part of the 100 day plan is sitting down with new brokers and giving them different ‘customer scenarios’ – where they will have to figure out the best way to approach the particular situation and recommend the most suitable product for each ‘customer’. It is all about preparing them so when they meet potential clients, they are confident and they know what they are talking about.”
Scott McCartney, general manager at Let’s Finance, says they are about to take in their first round of new brokers for their new four-week cadetship.
“We have decided to run these four-week cadetships for new brokers because we found that there was not much structured training out there. Even when new recruits are making the switch from a bank to being a broker, there is still a large skill gap, especially from the compliance side.
“In the first week of the cadetship, we will run through the background and foundations of the finance industry. In the second week, new brokers will do their Certificate IV which our aggregator, Vow facilitates. In the third week, we will do a lot of scenario-based training and in the fourth week we will get some lenders in who will do presentations and training on their products.”
McCartney says he believes the MFAA and FBAA provide a lot of support for brokers, however the industry would benefit from a more uniform approach to training.
“I think both the MFAA and FBAA do a lot to support their brokers, but because there are so many lenders, aggregators and associations, I think that everyone needs to be more on the same with training. At the moment, we are all responsible for training our own staff, but it would be nice to see a more uniform and guided approach across the industry and for someone to really take control over regulating it.”
Simone Ryan, director of Moneybag Finance, says she offers an in-depth three month training program followed by two years of on-the-job mentoring after they complete their relevant educational qualifications. When it comes to what the industry can do to support new brokers, she would like to see the associations take a more consistent approach to aligning new brokers with mentors.
“I feel the industry bodies can strengthen their support network by aligning new to industry brokers with a mentor and network so that they are supported in their new business and career. It’s providing a network of support that is regular, consistent and educational that is imperative.”
What would you like to see done to better support and train new to industry brokers?
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