Training helps brokers remain competitive

Brokers are enjoying an unprecedented market position as more Australians turn to them to find suitable loans.

The latest MFAA figures reveal a record market share for brokers, who are now writing 66.9% of all new residential home loans.

To provide the best customer service, brokers must be aware of regulatory changes, new products, technology, policies and procedures.

Here, lenders ANZ and Thinktank and broker aggregator Specialist Finance Group share some insights into how they help educate brokers.

ANZ general manager commercial broker Ivan Mioc says continuous education is critical in the finance industry.

“This is due to the pace of change, increasing regulatory oversight and the rising expectations of our customers,” Mioc says.

“Brokers have become trusted advisers to customers for their finance needs, especially for commercial customers who may have a range of lending needs.

“All brokers and banks should understand and help fulfil customer needs and make the lending process simple. Well-informed brokers and bankers are best placed to achieve this."

Peter Vala, general manager partnerships and distribution at non-bank lender Thinktank, says education is an ongoing process.

“It’s not only important to how we manage our business at Thinktank but also to support progressively improved opportunities and experiences for the customer and the broker industry.”

He says education in the fundamentals of lending is essential to ensure the best customer outcome.

“As a broker’s business develops and grows, many different and varied financial needs will arise. The broker may choose to further educate themselves and diversify or potentially allow these transactions and relationships to be referred to other parties or other brokers.”

Vala says the more educated a broker is, the greater their chance of identifying and converting lending opportunities with solutions that best fit the client’s financial needs.

SFG general manager Blake Buchanan says brokers are the professional practitioners who manage what is usually a person’s most significant financial transaction.

“Brokers need to be always at the top of their game to ensure they are up to date with the latest products, rates, features, strategies, grants and regulations,” Buchanan says. “They need to  draw on this information to give the best solutions available to their clients.”

Advantages of broker education

Mioc says brokers being well informed on the latest policy and regulatory settings can be a differentiator for customers.

“The more helpful information you can share with a customer and the better you are able to answer questions, the more likely they are to trust you to help find the right finance solution,” says Mioc. “If your customers see that you’re knowledgeable, capable and do your job well, the more likely they are to give you return business.”

“Clients validate their broker choice with confirmations from websites, social media and word of mouth. Promoting your education is a great thing that assists with marketing opportunities and consumer confidence.”

Buchanan says there a lot of small broker businesses, often with fewer than two staff.

“Whilst these businesses can offer amazing broking services to their clients, where are they drawing on knowledge and expertise in the fields of good business management, marketing and growth? Larger broking businesses continually look to improve their business practices in specific areas often beyond industry education.”

SFG not only offers industry education to broker members but also draws on its vast experience to assist members in developing their businesses through bespoke and tailored strategy sessions.

Broker education delivery

Thinktank offers formal and informal education options via webinars, 'lunch and learn' sessions and boardroom workshops.

“We try to make all of our sessions interactive,” Vala says. “We find that dynamic conversations supported with written material provide a richer and readily appliable learning environment. We can pivot our delivery and content in a manner that all can benefit from.”

All Thinktank learning and development team members have over 25 years’ experience in commercial and business lending. 

“While face-to-face learning is definitely our preference, technological advancements are undoubtedly helpful in supporting content delivery to accommodate all situations and locations.”

Vala says Thinktank relationship managers are always open to discussing topics, workshopping, or arranging formal or informal training.

ANZ supports aggregator training and education programs, as well as training schemes provided by industry bodies.

“While face-to-face sessions are usually preferable, where and when this isn’t possible, webinars and virtual sessions have been an important way of staying connected with, and supporting, our brokers,” Mioc says.

ANZ also provides economic updates and specialist lending webinars with case studies to bring complex commercial lending scenarios to life.

“We work hard to deliver a variety of content tailored to the audience and their different levels of experience, with complex matters presented in an easy-to-understand manner.”

Buchanan says SFG strives to make its education schedule widely available and in many formats to help brokers at various stages of their careers.

The broad educational requirements of SFG’s brokers mean “we work at the forefront of industry changes and challenges”.

“We do this with broad consultation of peers, industry partners, our broker network, regulators, industry bodies and consumers.”

Education topics

Vala says Thinktank last year covered understanding financial statements; timing of cash flow versus timing of financial reporting; and how to assist business clients affected by COVID.

SMSF lending was also a prominent topic – training continues this year via Thinktank’s SMSF accreditation course.

Vala says technological change sessions in conjunction with principal business partners will also be held, along with Commercial 101 courses and bespoke sessions on market or legislative developments.

Mioc says providing brokers with timely and clear information about COVID-support initiatives, bank assistance packages and government relief has been crucial over the past year.

“We have also offered economic sessions that are focused on the broader industry, and wellbeing sessions to provide additional and personal support to our brokers.”

Buchanan says the best interests duty has put the broker channel ahead of the industry when it comes to client assurances and the benefits of using a broker.

“It was and will continue to be our duty to ensure brokers are trained for new regulations and guidelines as they are introduced and/or amended,” he says.

“This year will see us focus again on the innovations of technology with the unparalleled capabilities of our system SFGconnect. We will also be rolling out our digital best practice education program that encompasses the hotly anticipated CDR regime.”

BDM support

Mioc says he wants to minimise the time BDM teams spend on administrative tasks, so they can focus on broker customers.

“We continue to educate our BDM team to ensure they are in the best position to assist brokers with their requirements and to answer their questions thoughtfully.”

ANZ has been investing in its commercial broker channel. “Our  teams are involved with some exciting projects designed to improve the broker experience – watch this space,” Mioc says.

Buchanan says the “SFG BDMs are cross-trained in multiple areas of our business so that when a broker requires assistance, they can either offer it on the spot or get the right person within the organisation to assist.”

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