Mortgage brokers under the age of 35 see a positive, albeit challenging, future ahead for the broking industry, according to a new report.
Released earlier this month, the MFAA and Connective Young Professionals Report strives to understand the next generation of brokers and compares perspectives between the younger and older generations.
Asked what they thought the future of the industry looked like, the under 35s’ top answer was industry expansion, with more brokers entering the industry and lenders relying on the broker channel more.
The second answer however showed they thought it would be “tougher” because of brokers creating more competition, as well as there being more regulation and changes to remuneration structures.
One of the biggest differences between generations was the perception that older brokers had of how the younger brokers were managing.
When both generations were asked what their biggest challenges were in the industry, they had the same top four answers.
Both said lead generation and marketing was the biggest challenge, followed by staying up to date with lender products and policy changes.
However, when the above 35s were asked what they thought the younger group would be concerned with, 45% said it would be earning trust, respect and recognition.
In reality, only 18% of brokers under 35 said this was a challenge.
Additionally, only 5% of over 35s thought the younger brokers would face challenges with technology. However 23% of young professionals said this was something they would like more support in.
In his closing remarks, the director at Connective, Mark Haron, said, “Looking at the information and data in this report, there is a lot to be excited about.
“Regardless of age or years of experience, some common challenges are apparent – lead generation, and adapting to changes in the industry and technology.
“The older generation of brokers perceive that young brokers know everything there is to know about technology, however this is not necessarily the case.
“To continue to develop talent in our industry, together we need to find ways to address the challenge of more effective mentoring and invest in the development of this next generation, for all our futures.”
Another key difference described in the report was where brokers had worked before becoming mortgage brokers.
While 50% of over 35s said they came from financial backgrounds only 35% of under 35s said the same, which was a drop from 41% the year before.
This year saw a rise of younger brokers coming from professions such as white collar jobs, blue collar jobs and those straight out of education.
To view the full report and see why brokers under 35 joined the industry and what they think of it, visit https://www.mfaa.com.au/about-us/community/young-professionals
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