The NAB-owned aggregation group has revealed that an increasing proportion of its brokers are writing commercial loans, with a quarter of them having done so in the past year.
Sean Reid, the head of aggregation at Choice Aggregation Services, revealed that the group has been seeing brokers increasingly looking to diversify their offerings and branching into new areas of loan writing.
Speaking at the launch of the company’s whitepaper, A world of choice: 20 years of mortgage broking, Mr Reid said: “Commercial lending is a key growth area that will at least match what is happening in the residential market. The opportunities that exist in that space are huge. Not every broker focuses on that area still, and the key for us is providing training and education in that particular space.
“We have done some work here. To give you an example, last quarter, 25 per cent of the 1,600 brokers we have wrote a commercial loan. So that’s one in four. And it’s fairly consistent across the last four quarters we looked at. Just in that, there is an opportunity.”
Mr Reid went on to note that as well as this, Choice has identified that 30 per cent of its brokers’ customers are self-employed. He said: “So, if your customers are self employed then there are opportunities for commercial and asset finance. They have needs in those segments, so we certainly see that.”
The Choice whitepaper also identified that a key trend going forward would be the ongoing expansion of the broker proposition, as “brokers take more holistic view of their clients’ needs”.
CEO Stephen Moore said: “There is a natural synergy between looking after someone’s personal lending needs and extending that into ensuring their business needs are also looked after”.
Are you a broker looking to diversity into small business lending? Why not sign up to attend The Adviser’s SME Broker 2017 event, a free, one-day bootcamp that will teach you how to write SME business and position your business as a trusted SME partner.
The Adviser’s Bootcamp SME Broker 2017 event, supported by principal partner NAB, will also pinpoint exactly what SMEs want, how they view mortgage brokers and what types of finance they are looking for.
In addition, two broker panel sessions will focus on how to attract new SME clients and what alternative finance options are available for mortgage brokers and their small business customers.
The event kicks off in Sydney on 14 November, before heading to Melbourne on 15 November, Brisbane on the 23rd and Perth on the 28th.
For more information about The Adviser’s Bootcamp SME Broker 2017, visit https://www.bootcampsmebroker.com.au
[Related: Bootcamp SME Broker: Agenda revealed]