Westpac and Capital Finance collaborated on the study
Industry-first research by Connective Asset Finance, in collaboration with Westpac and Capital Finance, shed light on the challenges asset finance brokers face and how they are dealing with current market forces and future demands to redefine their broker playbook.
The report, The Broker Game Plan, confirmed that asset finance brokers heavily relied on technology to streamline processes and fostered strong relationships with aggregator BDMs with specialised specific asset finance expertise, all while staying updated on demanding compliance requirements to achieve success.
The research showed that 84% of brokers find compliance requirements more demanding, posing challenges to their business.
Brent Starrenburg (pictured above), head of Connective Asset Finance, said the research aimed to help asset finance brokers prepare for growth and success by implementing effective systems early on.
“Asset finance broking can unlock diversification and growth opportunities for brokers, but success depends on brokers’ understanding of what technology and systems will deliver the most efficiency, and what expert support they need,” Starrenburg said.
The Connective Asset Finance study found that a massive 71% of brokers regarded their aggregator BDM’s asset finance expertise as the most crucial factor in driving growth. The top three desirable qualities of an aggregator BDM include in-depth knowledge of asset finance, accessibility and responsiveness, and support in dealing with lenders.
“Deepening client relationships by being a client partner requires brokers to understand and anticipate their clients’ business and financing needs, and how they can grow,” Starrenburg said. “Aggregator BDMs with specialised asset finance knowledge can support brokers by workshopping scenarios. This is crucial for brokers to stay ahead of the game and adapt to different client needs.”
Greg Pell, Westpac Group’s national general manager, said the report equips brokers with insights to navigate changes and seize opportunities, focusing on key industry trends, practical strategies, and the crucial role of brokers in Australia’s asset finance sector.
“In recent years, we have witnessed significant changes in the industry, driven by technological advancements, regulatory shifts, supply chain issues and changing customer expectations,” Pell said.
“These changes present both challenges and opportunities for brokers. By staying abreast of industry trends and adapting to the changing landscape, brokers can enhance their service offerings, improve customer satisfaction, and ultimately drive business growth.”
Just 44% of brokers have automated their daily tasks, including collecting data, documents, and signatures, according to the report. The majority of brokers use solely mortgage broker CRMs, indicating that many have yet to fully leverage appropriate technology for their businesses.
“Brokers want a user-friendly CRM that will help them have consistent and open communication with their clients to streamline processes,” Starrenburg said. “Those who use a platform or tech tools customised for asset finance and implement automated marketing tools are achieving success in providing 360-degrees of service to clients.
“Success in asset finance today hinges on adaptability. It’s clear that brokers need to lean on tailored innovation, build strong relationships, and stay informed about industry trends and regulations to unlock the winning strategy.”
Access and read the complete report and research findings.
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