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Practice makes perfect

by Huntley Mitchell15 minute read

Education and training is something all brokers complete in order to develop their skills and experience, but how much is enough, and what should brokers be focusing on?

Broker education and training is constantly evolving. As the industry adapts to new technology and changing regulations, the role and significance of education and training has really grown for brokers. Where a broker chooses to focus their education and training efforts will depend on the individual. All brokers are different – they have different strengths and weaknesses, and their professional goals and ambitions will vary – so what they choose to focus on will be a personal decision.

For some brokers, the focus might be more about technical knowledge and getting to understand specific product policies or a new area of specialisation, such as insurance, commercial lending or asset finance. For other brokers, the focus might be on business and sales skills or digital marketing.

Phil Quin-Conroy, chief executive of PLAN Australia, says education and training can have a big impact on a broker’s bottom line, and is noticing a real demand from the brokers PLAN Australia deals with.

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“Brokers recognise our industry is competitive and dynamic and they know ongoing education and training is vital to excelling in the marketplace,” he told The Adviser.

“As the industry has come of age, brokers have really moved to embrace the opportunities that training and education present.”

Mr Quin-Conroy says brokers need to understand that education is an ongoing process – and to succeed, it has to be part of their business, rather than a nice addition.

“The most successful brokers are open to new ways of doing things and the power of ongoing learning, and we expect the role of education and training will only grow in importance,” he says.

Brokers have a plethora of education and training options on offer from industry associations, broking groups, aggregators and lenders. However, Mr Quin-Conroy says brokers who want to develop their skills and experience in areas not addressed may wish to look outside the industry.

“Good education is never a waste of time,” he says. “My only word of caution would be to avoid any pushy, overpriced seminars or education providers.”

Technology is one area that is having a significant impact on how brokers operate, and Mr Quin- Conroy believes development in social media and digital marketing skills should be a high priority for all brokers.

“Technology can create enormous benefits, so our view is that brokers should see technology as an opportunity to really drive business growth and efficiencies as well as greater client engagement,” he says.

“Having an active presence on social media can be a powerful way to build your business profile and keep your name front and centre with clients, so if you’re unsure how to use social media competently, I would recommend exploring some training options in this regard.”

PLAN Australia’s offering

Mr Quin-Conroy says PLAN Australia is all about providing premium aggregation services to brokers focused on growing their business, and professional development is a critical component of fulfilling that mission.

“We’ve invested heavily in creating a unique and highly effective training and education program, including powerful tools, collateral and events to support broker business development,” he explains.

“PLAN Australia runs a number of tailored events throughout the year, providing our brokers with dynamic learning and networking experiences to encourage business excellence,” he says. “Brokers earn CPD hours for every event they attend.”

PLAN Australia also offers an online education and training program through its CRM platform, Podium 2.0. Mr Quin-Conroy says this emphasis on technology means PLAN Australia can deliver education and training quickly and flexibly through an increasingly critical channel.

Recently, PLAN launched a new digital summit for its brokers as part of its commitment to providing dynamic learning experiences in ways that meet brokers’ varying needs and preferences.

Mr Quin-Conroy said one of the key tools that PLAN Australia introduced last year to help brokers grow and improve their businesses is the Business Benchmark Initiative – a business diagnostic that allows brokers to conduct an assessment on the performance of their business under five distinct categories by providing a rating against best-practice measures.

“This initiative gives our brokers great insight into the key strengths and weaknesses of their business and where they need to invest time and resources,” he says.

A broker’s-eye view

Having only started broking in March this year, BlueRock’s director of debt advisory, Jamie King, says accreditation and regular catch-ups with banks and their BDMs is one of the most beneficial forms of education and training for him.

“When the banks come out and you get accredited with them and you catch up with the BDMs, you get some information and training about what sort of products the banks are offering and what some of the rates and terms and conditions they’re currently offering mortgage brokers within the industry,” he explains.

“This obviously helps with our education and going back to the clients and determining the right products for their financial needs and aspirations.”

Mr King says he also finds regular catch-up meetings organised by PLAN Australia’s BDMs with other brokers beneficial in understanding how his industry peers tackle day- to-day issues.

“I’m all about on-the-job education and learning from people who have been in the industry for a number of years. Through PLAN Australia, I’ve got the opportunity to do that,” he says.

It is worthwhile for brokers to look outside the industry in order to further enhance their skills in areas such as sales, Mr King adds.

“Some specific sales techniques about closing and being able to walk away from deals are some that would be good outside of the industry that brokers could potentially up-skill themselves with,” he says.

“Being able to identify an opportunity when it arises and also being able to walk away from an opportunity if there’s nothing really there. Being able to know when there’s a deal on the table, what’s required and what the customer’s expectation is.

“Working out what the buying influence concept is when you’re dealing with specific clientele. These are handy skills for brokers to learn.”

Another broker that realises the importance of education and training is LadyBird Home Loans owner Wayne Marks.

From a theory point of view, Mr Marks says the minimum education requirement for brokers entering the industry – the Certificate IV in Finance and Mortgage Broking – is adequate, but the level of ongoing support for new-to-industry people is questionable.

“I see the results of that through business that we end up picking up because of the lack of skill of those new-to-industry brokers who are getting it wrong,” he says.

“There’s a wrong application, wrong structure, wrong understanding, and then we come along and turn it into a deal. The deal was there every day of the week – it’s just a lack of practical experience that these brokers have got.”

Mr Marks sees himself as more of a hands-on style teacher to his team of brokers, and says a lot of the education and training provided to brokers through mentoring programs misses some of the fundamental aspects of the role.

“At the end of the day, you can train people to write loans – it’s not that difficult,” he says. “The difficulty in this game is figuring out where the next transaction is going to come from. How do I get out there and develop business opportunities? How do I get the next lead going?”

“My model is totally different. We give our new brokers leads – we give them everything. So they’re writing our leads, and at the same time, we’re training them on how to write that business and they’re operating in our office every working day that they’re in here.”

Mr Marks says brokers should look at further education and training outside to what is offered in the industry, and sales and business development are two key areas that brokers should focus on. 

“I’ve got people ringing me up and saying ‘I’ve been operating for the last couple of years and I want leads – just give me leads’. What have they been doing for the last couple of years? Who’s been teaching them?” he says.

“The bigger, branded franchise groups seem to be the worst at it. They bring these people in and they throw them out after two weeks to sink or swim, and most of them tend to sink and then they’re floundering, trying to find someone who’s actually going to show them how to fish, and that’s what I see is really lacking in the industry.”

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