The head of the Finance Brokers Association of Australia has said that the failure rate for new brokers is improving, but more needs to be done to support them.
In 2016, the executive director of FBAA, Peter White, told The Adviser that around half of all new-to-industry brokers don’t make it through the first 18 months of business, with many finding it hard to support themselves in the first few months of business if they do not have adequate capital behind them.
However, Mr White told The Adviser this week that there are promising signs that new brokers are proving more successful.
He explained: “We had formerly seen that around half of new brokers failed in the first 18 months of business, but it has pulled back a little bit from that figure more recently.
“While we don’t have formal statistics, we do know that people are ‘surviving’ longer. The drop-off rate and the proportion is pushing out, so it’s now closer to two years than 18 months, and the proportion is now in the high 40s, compared to 50 per cent.”
According to the head of FBAA, brokers in nearly all markets are having more successes in the early stages of their business as they “focus back in on their business rather than the current environment”.
Mr White noted that industry events such as The Adviser’s upcoming New Broker Academy, aggregator and lender PD days and the “initiatives that FBAA are doing and continue to do” would help ensure that more new brokers succeed in the future.
“The more we focus back into the business and get those new-to-industry entrants up and running, then I think we’ll see more and more new brokers have greater success.
“So, it’s a promising sign that things are improving and that new-to-industry entrants are seeing that we’re supporting them.
“But we need to support them a lot more and consistently, so there is still a way to go.”
Following the success of the inaugural New Broker Academy last year, The Adviser, in partnership with Heritage Bank, will be extending the event this year to run across five states in June 2018.
The free-to-attend event aims to equip new brokers with the knowledge, skills and networks needed to succeed and future-proof their career.
New Broker Academy 2018 will be held at:
Places are limited, so secure your spot for New Broker Academy 2018 now or refer a colleague, peer or friend who would benefit.
The REA Group has confirmed changes to the Mortgage Choice-Sm...
The state and federal governments have offered support packages t...
The non-major bank has released a new broker platform as it conti...