Why new brokers face shock and bewilderment

And, for some, that shock and bewilderment is going to continue as the industry further develops its professionalism is response to the Sedgwick and ASIC enquiries into broker remuneration.

Much of this will be driven by lenders, such as CBA, requiring brokers to go beyond the minimum legal qualification to become a broker.

We applaud this decision at Walker and Miller Training; in general, we find those who are looking for the cheapest option to become a broker are the least likely to succeed.

Good brokers are those who invest in the best qualifications, continue their professional development and are constantly seeking the optimal solution for their client.

A broker’s journey from innocent first timer to experienced finance expert takes make twists and turns as they develop from student to mentee to fully qualified broker. Throughout they need sound education, a good mentor and a professional attitude.

At Walker and Miller Training, we see this evolution in-depth. It begins with the nervous call from a would-be broker when they realise that they need qualifications that are commensurate with arranging millions of dollars of finance.

It continues during our courses when the penny drops for future brokers about professional standards — particularly their NCCP obligations.

And we see it further evolve as we see students enjoy positive relationships with their mentor.

We always know that our students have succeeded when, a year or so down the track, they send their own staff or mentees to us and we can see that their business is booming.

We believe that there is further scope to improve professionalism in the industry. And this is key if the consumer is to have greater confidence in brokers — boosting competitions and customer outcomes.

But good brokers don’t need a PhD in rocket science; diploma-level education plus the right attitude will be key to success.

Two examples I would offer of our successful Diploma graduates:

• An ex NSW police officer, who is a stickler for his compliance documents. But who could still submit a $4m application to Westpac from his family holiday in the USA
• A Gold Coast ex-hospitality manager who has worked closely within his Nepalese community with a profound sense of customer service and who is now shortlisted for the QLD Rising Star Award at this year’s Better Business Summit

The latest MFAA Industry Intelligence Service (IIS) Report has revealed that finance brokers continue to facilitate more than one in two (53.6 per cent) of all mortgages written in Australia. And the number of finance brokers in Australia has grown by 3.3 per cent to just over 16,000.

But the MFAA has warned that a growth-rate in brokers which is faster than a growth rate in broker-originated loans may not be sustainable – especially if average incomes reduce.

It is blindingly obvious that it is the well-qualified, professional broker who will survive in this environment.

Good brokers will quickly cope with their shock and bewilderment and accept that they need to go beyond the minimum qualifications to succeed.