Chris Thomas knows the value of staying informed. As National Australia Bank's (NAB) executive for commercial broker and equipment finance, he said staying ahead of the curve has been key – not just in navigating today’s turbulent economy, but throughout his entire career.
"The greatest evil that our customers face is anxiety through uncertainty," Thomas told Australian Broker in an exclusive interview. "They look to their trusted advisors and their partners to help steer them through that.
"Providing financial services is just one input to the many inputs that a business needs to survive," he said. "Putting it all in perspective, we provide a very important input into any successful business. But we are nonetheless an input, And for our part, it's incumbent upon our commercial brokers and our bankers to work together to make sure that – as our clients suffer that natural anxiety about uncertainty – that we're able to insert some level of confidence about the way forward. And that's in its purest sense, solving problems for them. And that's what they come to us with regularly – help solve my problem. Commercial brokers partner with great bankers who can do that well."
Thomas’ comments come against a backdrop of rising global instability – from tariff tensions and inflation fears to growing unrest across key regions – all of which are seeping sideways into Australia’s economy. On Wednesday, the Reserve Bank of Australia (RBA) caught markets off guard by holding the official cash rate (OCR) steady, a move that surprised both economists and the big banks.
In an environment like this, uncertainty isn’t just a headline – it’s a daily pressure point for business owners. And as Thomas made clear, brokers and bankers have a vital role to play in turning that anxiety into confidence.
"Commercial brokers bring to the table enormous amounts of expertise from their finance backgrounds and their business acumen," he said.
Thomas sat down with Australian Broker to share his take on the current economic landscape – both at home and abroad – and to unpack NAB’s latest report, "Capital Confidence: Trade and Working Capital Strategies." The report spotlights a growing opportunity for brokers to step up and support businesses facing trade hurdles, cash flow pressures and succession planning challenges.
The following are a few key takeaways.
Commercial brokers in Australia manage just 30% to 40% of all commercial loans, compared with 76.8% of residential home loans written by brokers. The gap represents huge upside potential for brokers ready to diversify. Thomas said the fastest – and smartest – way to seize it is by building strong relationships.
"The greatest opportunity for our commercial brokers is to keep deepening their relationships with their clients," he said. "I would implore all of our commercial brokers to be very, very focused on building and deepening customer relationships, because that is the essence of connection. Whether that means being able to provide solutions to one client, or the associated population of another five or six clients. That is at the core of what great brokers and great bankers do."
In a volatile market, brokers who stay informed, think strategically and leverage NAB’s support can help clients grow – and grow their businesses in the process, Thomas said.
"It's really important for our business customers, and our commercial brokers looking after those customers, to appreciate the ever-changing environment that we find ourselves in around global trade. And domestic trade to some extent, because it all flows through," he said. "It's a call to action around being very vigilant around the changing circumstances that we find ourselves in.
"There's a great opportunity for commercial brokers as trusted advisors, and the bankers that they're working with in partnership at NAB, to come together to build solutions that actually cater to these customers and their ever-changing circumstances," he said. "Commercial brokers hold a very important role as trusted advisors; they are able to get inside the minds and underneath the strategy of these clients, to understand really what the customer is trying to achieve and how they're going to do it."
Even with growing market pressure, nearly 60% of Australian businesses are planning to invest in the next 12 months – in staff, new markets or equipment – with business services, healthcare, and construction leading the charge, according to NAB’s Insights report.
That spells opportunity for brokers. Access to specialist expertise, insights and tailored solutions can be the game-changer, turning hesitation into confident decision-making and missed chances into strategic growth for commercial brokers.
But Thomas warned against putting all your focus on just one sector.
"I think that unfortunately, too often, we gravitate towards the low-hanging fruit, which is to try and source an industry that's growing, or a part of the economy that perhaps offers more opportunity," Thomas said. "But those commercial brokers with deep levels of experience, as well as our bankers, will always know that the real richness of building a long-term relationship is actually understanding the customer. It's not just about understanding their current situation today, but understanding the history of where they've come from, their current circumstance and where they want to go. It's building long-term relationships that are deeply set in creating mutual value creation around making sure that as suppliers of financial services, we play our part in helping them achieve their goals.
"And I'm really dead set against being discriminatory against a segment or an industry," he added.
Australia’s M&A market is heating up. This surge, fueled by lower cost of capital and increased investor appetite, is creating a wave of opportunity for firms across the nation, including brokerages.
"I think specifically to the broking industry, I do think that there will be continued consolidation. I think the economics of scaling for any small-to-medium-enterprise business is an ever-present consideration, because of the cost pressures that face businesses today," Thomas said. "What's particularly in focus for the broker industry is that customers want more support, and many customers are self-employed, as well as many customers are employed through small-to-medium enterprises. And I think therein lies the opportunity and the challenge.
"The opportunity is, how does a broking firm consider moving into supporting more of the needs of those customers? And then the challenge is, what skills and what support do you need to do that?" he said. "And I think that the great question for many of our brokers is, how do you multiskill? How do you multi skill to support those types of customers? It can be a combination of internal growth in terms of capability. But it could also be about acquiring the skill set that you need to deal with those customers today. And I think that's why we're seeing more and more of the consolidation is mergers and acquisitions to build that skill set to deal with the customers in the future."
