In terms of new arrivals, the specialist market is becoming hugely crowded as a host of new lenders have been joined by more intermediaries focusing on the sector. According to the Council of Mortgage Lenders (CML), the market for non-conforming is worth some £25 billion and is growing six times faster than mainstream mortgages. The increased competition and the introduction of more competitive pricing structures means that mortgage brokers may find many lenders’ business development managers (BDMs) are particularly hungry for business right now.
No sooner has the broker put the phone down on one, then another is calling requesting a meeting or maybe even a spot of lunch.
BDM responsibilities
o sooner has the broker put the phone down on one, then another is calling requesting a meeting or maybe even a spot of lunch.
A BDM is essentially a sales job – but in my view this is far from being the whole story. Mortgage brokers themselves understand sales and they know when they’re dealing with a professional and when they are not.
No one appreciates a BDM who is simply looking to hit their meeting targets, who drops off with nothing more than a brochure and who has a ‘tick box’ mentality. They are simply using up a broker’s valuable time.
The responsibility of a BDM is to deal with brokers both on an individual basis and with packagers. When it comes to recruiting, lenders should look for qualities such as the right attitude, enthusiasm, drive and a good work ethic. Of course they need to be self-starters and motivated too, since a considerable part of the job is spent on the road and while there are regular team meetings, BDMs need to be very organised and able to manage their own diaries effectively.
Personal qualities are often more important than technical knowledge. For example, while we look for an understanding of products and of the mortgage industry, this can also be taught.
What does matter is that the BDM is prepared to build up a knowledge of the brokers’ business and they should be able to tailor their visits to specific needs. When the BDM has left, the broker needs to feel that something was achieved and that ideas have been exchanged rather than just listening to a sales pitch.
The BDM needs to find out what type of clients the broker deals with, where they need particular support and show that they are prepared to sort out any problems rather than just rush off to the next appointment.
Quality not quantity
BDMs are required to make a set number of visits but the quality of the visits made is the key. The first visit should establish whether there is indeed common ground to do business and a chance to offer some solutions to the challenges raised. Subsequent visits must have a purpose and add value to both parties, whether that be the resolution of previous action points or the dissemination of new and relevant information. If the BDM does not add anything by going to the broker’s business, then there is no point in them going at all.
As part of their role, BDMs may be able to discuss marketing initiatives and advise on targeting certain niches or the most effective ways to obtain more from existing clients. The complexity of the current market means that any help given to aid the broker in simplifying processes will no doubt prove extremely welcome. The BDM should also not shy away from sorting out any problems, whether this is linked to administration or with a case which seems to be taking too long.
A BDM should also be able to provide the intermediaries staff with product training and in the use of any relevant systems.
Being a BDM does have its own pressures in terms of targets, but working for a good employer means you are more likely to stay in the role. BDMs need to be challenged in their roles and paying them attractive salaries and providing first-rate training should go without saying.
A lender’s sales force performs a hugely important role for any organisation operating in the intermediary market and in order to provide the best possible service, lenders must place even more emphasis on this function as competition in the market intensifies. Therefore in 2007, we will not be alone in expanding our sales team to meet the new demands of the broker market. Being a BDM is not always an easy job and we know there are plenty out there trying to see you. But we’re determined to get it right and if our results are good, we want to know our BDMs are making sure yours are too.
