the adviser logo

More consistent support needed for new brokers: FBAA

by Reporter5 minute read

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.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

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:

  • Swissotel Sydney on 12 June
  • Melbourne Convention and Exhibition Centre on 14 June
  • Sofitel Brisbane Central on 19 June
  • Pan Pacific Perth on 21 June
  • Adelaide Convention Centre on 26 June

Places are limited, so secure your spot for New Broker Academy 2018 now or refer a colleague, peer or friend who would benefit.

[Related: How this new broker became NSW’s Broker of the Year]

More consistent support needed for new brokers: FBAA
broker meeting
TheAdviser logo
broker meeting


You need to be a member to post comments. Register for free today


daniel tuttlebee resimac asset fInance ta l27zun

Resimac takes controlling stake in Sonder

Resimac Asset Finance has expanded its acquisition stake in equipment finance business Sonder Equipment Finance...

asic ta 2

ASIC seeks ‘common-sense solutions’ to breach reporting

The Australian Securities & Investments Commission (ASIC) has committed to “improving” the operation of the...

andrew mills homestart ta htfetw

HomeStart drops graduate loan deposit to 2%

HomeStart Finance, a non-bank lender backed by the South Australian state government, has lowered the deposit hurdle...

Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more