From lender policy changes to a more saturated market, brokers need to be prepared for the New Year, says the chairman of the Independent Finance Brokers Forum
From lender policy changes to a more saturated market, brokers need to be prepared for the New Year, says the chairman of the Independent Finance Brokers Forum
Like many professions, finance broking must continue to adapt to the ever-changing landscape that is mortgage lending. We know that most brokerage firms are small, many are one person operations and this presents a range of challenges. Many hats must be worn by that operator and it can and does become overwhelming.
As chairman of the IFBF Sydney, I have many conversations with our members and would like to share a few of the challenges that are facing them and me as we see out 2017 and prepare for 2018. Oddly, regulation is not on the top of the list but I think we all recognize that our industry is now in the regulatory spotlight and changes are coming. Luckily the aggregators and professional bodies seem to be on the front foot in this regard.
Rather, a topic that does keep our brokers up at night is the increasing rate of change and difficulty keeping up with lenders credit policies. Couple that with the varied product sets offered by lenders and it’s the proverbial minefield. It seems policies can change weekly and many brokers struggle to keep pace. Brokers are having to quickly readjust from I would characterize as a loose credit environment to what is now a much tighter environment.
Furthermore, many brokers are struggling to find new business as our industry has, for the moment, become very saturated. This has led to many conversations about how to gain more business. Top ways to do this include: Database re-engagement and diversification. Both seem easy at a high level but present their own challenges.
Brokers I speak to are unsure of how to use the new digital platforms to re-engage a client. Many don’t have proper CRMs or any regular communication going out to clients including even a basic newsletter. Websites, Facebook, Linkedin, Twitter and the like are only now seeing uptake from the single person or small operations. I believe that a general lack of knowledge in this area has led to under adoption of digital strategies. I do believe the industry generally knows it must do something in this area but perhaps time and money are the biggest impediments.
The IFBF is a group of like-minded brokers who meet the last Friday of every month to discuss these issues plus much more. I believe that the only way for brokers to develop professionally is to attend meetings of this calibre. There are many good options available via the industry bodies and special events put on by the like of MPA and The Adviser.
At the end of the day though you just need to start. Start now, where you are, with what you have….just start.
PJ Patterson is the chairman of the Independent Finance Brokers Forum (www.ifbf.com.au) a Sydney based networking group established in 2006. The IFBF’s focus is on Education, Compliance and Diversification. They meet the last Friday of every month at the Rosehill Bowing Club.
Like many professions, finance broking must continue to adapt to the ever-changing landscape that is mortgage lending. We know that most brokerage firms are small, many are one person operations and this presents a range of challenges. Many hats must be worn by that operator and it can and does become overwhelming.
As chairman of the IFBF Sydney, I have many conversations with our members and would like to share a few of the challenges that are facing them and me as we see out 2017 and prepare for 2018. Oddly, regulation is not on the top of the list but I think we all recognize that our industry is now in the regulatory spotlight and changes are coming. Luckily the aggregators and professional bodies seem to be on the front foot in this regard.
Rather, a topic that does keep our brokers up at night is the increasing rate of change and difficulty keeping up with lenders credit policies. Couple that with the varied product sets offered by lenders and it’s the proverbial minefield. It seems policies can change weekly and many brokers struggle to keep pace. Brokers are having to quickly readjust from I would characterize as a loose credit environment to what is now a much tighter environment.
Furthermore, many brokers are struggling to find new business as our industry has, for the moment, become very saturated. This has led to many conversations about how to gain more business. Top ways to do this include: Database re-engagement and diversification. Both seem easy at a high level but present their own challenges.
Brokers I speak to are unsure of how to use the new digital platforms to re-engage a client. Many don’t have proper CRMs or any regular communication going out to clients including even a basic newsletter. Websites, Facebook, Linkedin, Twitter and the like are only now seeing uptake from the single person or small operations. I believe that a general lack of knowledge in this area has led to under adoption of digital strategies. I do believe the industry generally knows it must do something in this area but perhaps time and money are the biggest impediments.
The IFBF is a group of like-minded brokers who meet the last Friday of every month to discuss these issues plus much more. I believe that the only way for brokers to develop professionally is to attend meetings of this calibre. There are many good options available via the industry bodies and special events put on by the like of MPA and The Adviser.
At the end of the day though you just need to start. Start now, where you are, with what you have….just start.
PJ Patterson is the chairman of the Independent Finance Brokers Forum (www.ifbf.com.au) a Sydney based networking group established in 2006. The IFBF’s focus is on Education, Compliance and Diversification. They meet the last Friday of every month at the Rosehill Bowing Club. 
