Mortgage Professional Australia issue 18.06

MPAMAGAZINE.COM.AU ISSUE 18.07

BROKERS ON AGGREGATORS How Finsure emerged ahead of the pack to capture gold

MORTGAGE CHOICE Franchisees fight back over unfair remuneration structures

DAVID BAILEY A future unknown, but an industry that will prevail

TOP BDMs Celebrating those who support brokers’ success

JULY 2018

CONNECT WITH US Got a story or suggestion, or just want to find out some more information?

CONTENTS

twitter.com/MPA_Australia facebook.com/Mortgage ProfessionalAU

UPFRONT 02 Editorial Brokers fight back in defence of the industry

04 Statistics

30 FEATURES

SPECIAL REPORT

16

TOP BDMS Celebrating some of the most committed, experienced and passionate BDMs in the business

Foreign interest in Australian property dwindles, according to the FIRB’s Annual Report

06 Head to head Brokers talk about how their expectations of aggregators are changing

08 News analysis Mortgage Choice’s bad move

10 Opinion Increased regulation will be a silver lining for some, writes Homeloans’ Daniel Carde

BROKERS ON AGGREGATORS The competition is heating up in our annual survey.

Find out what is setting these aggregators apart

FEATURES

44

52 Elevating brokers through education Brokers’ long-term success depends on continued education

FEATURES THE BIG INTERVIEW

DAVID BAILEY The future of the industry is full of unknowns, but AFG’s CEO is confident brokers will prevail

1

BBX

PEOPLE

Pictures and highlights from the inaugural MPA Broker Business Exchange in Sydney

54 Career path Introducing Virgin Money’s new head of broker distribution

56 Other life A broker who moonlights as a news anchor

50 FEATURES

VEHICLE FINANCE With Liberty Drive’s prime car loan, brokers can get ahead of the curve

MPAMAGAZINE.COM.AU NOW ONLINE: Our daily newsletter. Keep on top of property market trends, business strategy, and what industry leaders have to say.

www.mpamagazine.com.au

1

UPFRONT

EDITOR’S LETTER www.mpamagazine.com.au

An uprising of brokers

A

s a broker right now, it feels like you’re on unsteady ground. Everything seems to be shifting underfoot – but not always for the worse.

The latest “structural shift” was delivered in AFG’s Competition Index for June 2018, which revealed that major and non-major banks have almost reached parity when it comes to loan flows originated by the aggregator’s 3,000-strong broker network.

Major lenders claimed 59% of those brokers’ mortgages at the end of May, continuing a five-month slide for the majors, while the non-majors captured 40.9% of home loans.

On page 12, we interview AFG CEO David Bailey, who talks about the importance of the channel and a future of unknowns.

This past month also saw a positive break for brokers as the MFAA released a data-heavy media blitz. Brokers have been asking and demanding a public defence of the industry. Now they’ve got it.

Conveniently, brokers also had a strong March quarter, settling $46bn in

Lenders, aggregators, associations, industry media, and more than 50% of the Australian population are all relying on brokers home loans, the largest March quarter by value since the MFAA began collecting data in 2012. Brokers captured 55.3% of the home loan market, which the MFAA says shows sustained consumer confidence in the channel.

But brokers aren’t just leaving it up to associations and aggregators. On mpamagazine.com.au, we wrote about Launch Finance director Steve Milligan’s white paper on the value of finance brokers and positive consumer outcomes; and about the new broker advocacy group, Mortgage Broker Forum, which was spearheaded by some of the most decorated loan writers in the country.

In this issue, we have plenty of good-news stories and firsts for MPA. In our Top BDMs feature (page 30), you’ll find the faces and stories of some of the most committed, experienced and passionate BDMs in the business. We also have pictures and highlights from our inaugural MPA Broker Business Exchange.

And we reveal what brokers have to say about their aggregators in our annual Brokers on Aggregators report.

It’s worth looking at how these groups are innovating and evolving to ensure brokers’ businesses remain prosperous. At the end of the day, lenders, aggregators, associations, industry media, and more than 50% of the Australian population are all relying on brokers.

Otiena Ellwand, editor, MPA

2

www.mpamagazine.com.au

JULY 2018 EDITORIAL Editor Otiena Ellwand Journalists Ben Abbott Nicola Middlemiss Abel Riototar Contributor Daniel Carde Production Editor Roslyn Meredith

SALES & MARKETING National Sales Manager Claire Tan Account Manager Simon Kerslake Marketing and Communications Manager APAC Michelle Lam Marketing Manager Danica Mendoza

CORPORATE ART & PRODUCTION Designers Cess Rodriguez Martin Cosme Traffic Coordinator Freya Demegilio

Chief Executive Officer Mike Shipley Chief Operating Officer George Walmsley Managing Director Justin Kennedy Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil

EDITORIAL ENQUIRIES tel: +61 2 8437 4792 otiena.ellwand@keymedia.com

SUBSCRIPTION ENQUIRIES tel: +61 2 8011 4992 • fax: +61 2 8437 4753 subscriptions@keymedia.com.au

ADVERTISING ENQUIRIES claire.tan@keymedia.com simon.kerslake@keymedia.com.au

Key Media Regional head office Level 10, 1–9 Chandos St, St Leonards, NSW 2065, Australia tel: +61 2 8437 4700 • fax: +61 2 9439 4599 www.keymedia.com Offices in Sydney, Auckland, Denver, London, Toronto, Manila, Singapore, Bengaluru

Mortgage Professional Australia is part of an international family of B2B publications and websites for the mortgage industry CANADIAN MORTGAGE PROFESSIONAL neil.sharma@kmimedia.ca T +1 416 644 8740

Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as the magazine can accept no responsibility for loss.

UPFRONT

STATISTICS

Foreign buyers dwindling Tighter lending policies take a toll on foreign investment in residential and commercial real estate APPROVALS FOR foreign investment in Australian residential real estate dropped from $47bn in 2015/16 to $25bn in 2016/17, according to the Foreign Investment Review Board’s Annual Report 2016–17. The report regards the introduction of application fees in 2015 as a significant contributor to the reduced applications. Other factors that may explain the decrease include China’s tighter capital controls and the introduction of statebased taxes on foreign investors.

The year was challenging for brokers who used to work regularly with foreign buyers, according to Tana Xuren, MD of Victorianbased brokerage uBroker. Her team has seen a large number of foreign investors losing interest in Australian properties and instead opting to invest in Malaysia, Thailand, Japan and Europe.

However, China continues to be the largest source of foreign investment in Australia, with 9,714 approvals amounting to $39bn in investment. The US and Canada trail behind.

FOREIGN INVESTMENT

BY SECTOR A total of 14,357 investment applications amounting to $193bn were approved in 2016/17, a decline from 41,445 approvals totalling $248bn in 2015/16.

According to FIRB, its introduction of application fees in December 2015 was the biggest factor contributing to the significant reduction in the number and value of residential real estate applications in 2016/17.

21%

28%

13,198

549

approved foreign applications for residential real estate-related investment in residential real estate breaches identified by the ATO

$44bn

36%

approved foreign applications for commercial real estate investment

foreign share of residential and commercial real estate approvals

13%

8%

2%

4%

1% 23%

Share of total value of approvals, by industry sector, 2016/17

Source: Foreign Investment Review Board Annual Report 2016–17

APPROVALS BY COUNTRY

APPROVALS BY STATE AND TERRITORY

Approvals for foreign investment in commercial real estate dropped from $50bn in 2015/16 to $44bn in 2016/17. The decline was in part due to the China-Australia Free Trade Agreement, which requires approval for Chinese investors purchasing developed commercial property valued at $1m or above.

In 2016/17, 13,198 residential real estate applications worth $25bn were approved across Australia.

This was a decrease from 26,951 approvals in 2015/16. The largest proportion of application approvals was in Victoria.

Northern Territory 0% Queensland 18%

Approvals for foreign investment by country and sector, 2016/17

Western Australia 5%

Agriculture, forestry and fishing Financial and Insurance

New South Wales 32%

Manufacturing, electrcity & gas Mineral exploration & development Real estate Services Tourism

China

USA

No. of approvals: 9,714 No. of approvals: 316 Total: $38,867m Total: $26,455m

Canada No. of approvals:193 Total: $23,190m

Source: Foreign Investment Review Board Annual Report 2016–17

4

www.mpamagazine.com.au

Approvals for foreign investment in residential real estate by state and territory, 2016/17

Australian Capital Territory 1% Victoria 41% South Australia 3% Tasmania 0% Source: Foreign Investment Review Board Annual Report 2016–17

2015/16

2016/17

41,445

14,357

approvals

approvals

$247.9bn

$192.9bn

value

value

Tourism Agriculture, forestry and fishing Finance & insurance Services

bn

$41

7bn

$5

n

$7

bn 3 2 $ bn 3 1 $

bn 0 5 $

Real estate residential

6bn

$1

2bn

b $28

$5bn $0bn

Mineral exploration & development Manufacturing, electricity & gas

Real estate commercial

n

b $54

bn 5 2 $ bn 4 4 $

$4bn $7bn $2bn Proposals data sectoral overview: 2015/16 and 2016/17

Source: Foreign Investment Review Board Annual Report 2016–17

POLICY SUPPORTS NEW BUILDS

ENFORCING THE RULES

The foreign investment policy encourages investors in the residential real estate sector to help generate new housing supply. In 2016/17, 11,190 approvals were released, which includes those for new dwellings, vacant land, and other residential property for development.

ATO residential real estate compliance investigations for 2016/17 found that 549 acquired properties breached Australian foreign investment rules. A total of 96 residential properties were divested by foreigners, raking in almost $97m.

No. of breaches Retrospective approval during 227 FIRB consideration

New dwelling 7,864 $6.59bn Proposed foreign investment in residential real estate by industry subtype, 2016/17

Retrospective approval

Existing property 2,005 $2.93bn Redevelopment 335 $0.90bn Vacant land 2,911 $1.13bn Developer 46 $9.36bn Source: Foreign Investment Review Board Annual Report 2016–17

Change of conditions

133

Self-divestment

93 66

Formal divestment

21

9

Concessional divestment Source: Foreign Investment Review Board Annual Report 2016–17

www.mpamagazine.com.au

5

UPFRONT

HEAD TO HEAD

How are your expectations of aggregators changing?

Brokers are increasingly looking for partners who heavily integrate digital technology into their service offering

Paul Cluff

Managing director MoneySmith Group “Besides being a pivotal partner in ensuring that our businesses are operating effectively and efficiently, aggregators are becoming more of a learning centre in the financial services realm. Brokers are often independent operators lacking in either time or expertise to stay abreast of the constant changes. Today’s aggregators need to be positioned to help brokers in this area.

“Furthermore, aggregator software is very important. A good system can greatly support brokers in compliance requirements, and communication to customers and marketing.

“My experience has proven that a professional aggregator group often directly benefits brokers, which then translates to a great customer experience and outcome.”

Lee Middleton Regional manager Nectar Mortgages

“In addition to providing the core functions of commission disbursement, PLAN assists us with strategy, knowledge, superior technology and even referrals. We need a BDM team that consider themselves partners in our success and will hold us accountable to our commitments. We get that from PLAN, along with the opportunity to attend PD days and updates about compliance issues, market changes and new technologies.

“In a world where processing times are increasing and rules are ever-changing, we expect our aggregator/sub-aggregator to systemise those tasks that take us away from doing what we’re best at – building referral relationships and speaking to clients.”

Redom Syed

Director Confidence Finance “Automation is no longer a buzzword.

It’s a key part of the modern brokerage business strategy. Using automation successfully allows brokers to improve their customer retention and helps deliver exceptional customer service. Good automated systems remove a major constraint on growth.

“We are relying on aggregators to provide systems, technologies and education to allow us to better automate our processes and help us grow. Today, an aggregator’s value to brokers is less about training and educating us on lenders’ policies and more about delivering market-leading technology to improve our processes that will deliver better value to our customers.”

AGGREGATORS PREDICT FUTURE OF COMMISSIONS Outsource Financial CEO Tanya Sale believes fee-for-service will never come into play in the industry. “I think it’s a disaster,” she said during MPA’s Aggregator Roundtable on 11 May. According to Sale, a flat-fee model would set the industry back to post-GFC lows when the vast majority of mortgages were written by banks.

“That’s not what the government wants. That’s not what ASIC wants, and that is certainly not what we want in our industry.” As for the future of trail commissions, one aggregator had a positive outlook: “Trail commission is very important for brokers who do the right thing,” said Specialist Finance Group MD William Lockett.

“It’s relationship-based that’s ongoing, not transactional-based.”

6

www.mpamagazine.com.au

UPFRONT

NEWS ANALYSIS

The wrong choice Mortgage Choice’s decision to prioritise shareholders over hard-working franchise owners will be remembered by the broking market as the wrong move “THE BEST decision of my life.”

That’s what one ex-Mortgage Choice franchise owner called his decision to leave the broking network after just two years, taking no clients, income or proceeds of a business sale with him. Aaron ChristieDavid, managing director of Atelier Wealth, shared publicly on LinkedIn in June that he felt he had walked away at the right time from a “flawed franchise model”, despite the network trying hard to keep him.

“We make our own decisions, and I feel sorry for the franchisees who are effectively

joint investigation by Fairfax Media and ABC’s 7:30 uncovered widespread discontent festering behind the household brand name.

Unearthing confidential internal documents, it revealed that at least 173 franchisees had come together to threaten the formation of a $200,000 legal fund should their demands for a fairer arrangement for franchise owners not be met.

Their main complaint? A remuneration model – brought in during the GFC and never changed since then – that they argue strips ‘low performers’ who settle under

The wellbeing of our franchisees is our number one concern. We provide any business owner experiencing hardship with personalised support” Susan Mitchell, Mortgage Choice chained to their business that they cannot sell or get out of,” he wrote.

“Two years on we have a business, Atelier Wealth, that we’re proud to run ourselves and we give great quality mortgage broking advice to our clients.”

Broking bad?

Christie-David’s story is good news for one broker but another bad-news story for besieged Mortgage Choice. In early June, a

8

www.mpamagazine.com.au

$1.5m in loans per month of most of their trail earnings, leaving them with little to stay afloat.

With franchisees under pressure to meet this sales benchmark, the model was causing ripple effects throughout the network, the report claimed, from brokers abandoning the network to deeply personal tales of selling family homes, physical illness, mental health problems, divorce, and even suicide risk.

Fighting the fire Mortgage Choice has been hit hard by the crisis. It sustained a 23% share-price plunge on 5 June after the internal ructions became public. Its share price languished further, closing at $1.26 on 25 June, down from a 2018 high of $2.54 in February and $1.89 before the crisis hit.

It has been left to CEO Susan Mitchell to respond. Mitchell, who only assumed the role as CEO after the abrupt departure of John Flavell in April, has confirmed the business is consulting franchisees to find a model that increases “franchisee remuneration and reduce[s] franchisee income volatility”. In what is likely to be a win for brokers who don’t meet existing sales benchmarks, the model – which the business says will be the result of sifting through 30 possible structures – is due to be decided on by July and rolled out to the network as soon as August.

DOES FRANCHISING HAVE A FUTURE? Australia has lost a lot of faith in franchises.

An IBISWorld report in June labelled franchising’s future as “not as bleak as it seems”, only confirming the prevailing attitude that many have towards franchises because of some very high-profile bad eggs.

IBISWorld senior industry analyst Bao Vuong says the value of the franchise system has been questioned largely because of the power that franchise systems have over those who sign on.

The result is the parliamentary inquiry into the operation and effectiveness of the Franchising Code of Conduct, announced in March 2018.

“This parliamentary inquiry into the franchising sector will examine the franchising regulatory framework and will focus on the power imbalance between franchisors and franchisees and consideration of the problems faced by franchisees, such as remuneration models and sales targets,” Vuong says.

“I feel sorry for the franchisees who are effectively chained to their business that they cannot sell or get out of” Aaron Christie-David, Atelier Wealth Mortgage Choice has also refuted claims that it does not support brokers. In a statement, the company said it had policies to support franchisees that required additional support, including personalised assistance to franchisees with financial difficulties or health issues, or who had suffered changes in family circumstances. Likewise, it has sought to quickly mute allegations of fraud risk.

“Mortgage Choice strongly refutes allegations in the media that its current model encourages poor behaviour or practices. The company has robust compliance processes and credit policy

controls in place that franchisees are required to adhere to,” the statement said.

Time to choose Mortgage Choice has long put itself forward as an example of best practice mortgage broking.

It has claimed that its pooled commission structure removes the incentive for brokers to recommend one lender over another, thereby combating some of the conflicts of interest inherent in commission payments. A proactive approach to media engagement has also been credited with benefiting the channel’s

reputation and growth as a whole, not just its own branded network.

The current attention puts much of this past good work in jeopardy. With a review aimed at changing the quantum and volatility of franchisee income, the business is acknowledging that, for many years and under multiple CEOs, it has weighted rewards too far in a direction of shareholders at the expense of struggling franchisees. Under a structure that heavily pushed new loan sales, a toxic culture flourished, reinforcing some of the negative questions around conflict of interest that the company had long sought to negate through lobbying of both regulators and the media.

Without an injection of franchisee fairness, Mortgage Choice will drag down the industry it has tried to lead through professionalism.

It has a choice to make. Unfortunately, it will now be left with the legacy of a choice already made.

www.mpamagazine.com.au

9

UPFRONT

GOT AN OPINION THAT COUNTS? Email otiena.ellwand@keymedia.com

OPINION

Rising above the naysayers Brokers who face industry challenges and changes head-on will be the ones most likely to survive and thrive, writes Daniel Carde SOME OF the royal commission’s recent focus has been on mortgage brokers – and it hasn’t been positive. Reports of fraud and conflicts of interest between brokers and banks have led to claims that the industry is likely to suffer irreparable damage from which it may not recover.

The FBAA, however, has said some of the commentary has been sensational and misleading. It’s important to keep in mind that most consumers are not complaining, said FBAA executive director Peter White. “We know they are happy with the current system because they are voting with their feet and overwhelmingly choosing brokers.”

But the industry is facing challenges, notably in the number of policy changes introduced to deal with regulatory demands.

Those brokers who can face these changes head-on will be the ones most likely to survive and thrive. So what are some of the key challenges and survival mechanisms brokers should be implementing right now?

As lenders continue to assess their compliance with regulation, brokers have found that lenders’ documentation requirements, serviceability guidelines and some product features have changed, such as interest-only repayments or line-of-credit options, which may no longer be available.

While this in itself does not stop brokers from doing business and helping borrowers, it does mean some product recommendations made only weeks ago may no longer be available or the borrower may no longer qualify. This can set the application process back and involve a complete rethink of the lending strategy best suited to the borrower.

10

www.mpamagazine.com.au

But with the challenges come opportunities.

As lenders continue to make policy changes, it becomes more difficult for borrowers to navigate the current home loan market on their own, which further strengthens the broker proposition. Brokers need to rise to these challenges and embrace them. They need to be ahead of the game and have a solid understanding of what has changed in the market. This puts them in a position of strength as they explain the reasoning behind product recommendations to borrowers.

Borrowers will want to know why some products are not available to them or why they don’t qualify with a particular lender. When a

Another challenge facing the industry is the softening property market.

“A lot of our real estate channels have seen a drop-off in enquiries, so we’re looking at other ways to generate interest, such as holding seminars or functions or by focusing more on professional partners such as accountants and financial planners,” Alabakov says. “We’re also seeing a lot more refinancing opportunities in light of lenders having increased rates over the last six to eight months.”

Martin North, principal of Digital Finance Analytics, stated on his blog that, in addition to tighter credit conditions, mortgage brokers face increased compliance requirements in response to a slew of inquiries. “This may mark the point in the cycle where some brokers decide to quit the industry,” he wrote. “You may end up with a smaller number of brokers.

I think there will be a bit of a shake-out.”

I disagree. In my opinion, the increased regulation will be a silver lining for brokers who embrace the new landscape. Rather than turning to banks, customers will instead choose brokers for their mortgage needs.

The growing use of technology is another game changer for the industry, with consumers going online to search for the best deals. But there are plenty of digital solutions brokers can

Increased regulation will be a silver lining for brokers who embrace the new landscape.

Rather than turning to banks, customers will instead choose brokers broker can answer those questions and back it up with relevant information, it provides that borrower with an added level of confidence that they are dealing with a professional.

Broker Anthony Alabakov from My Mortgage Freedom in Melbourne agrees that a big challenge for brokers is compliance and the regulatory changes that revolve around responsible lending. “The solution is to really know your customers,” he says.

“With any challenge I think it’s important to see what the positives are, along with the things you can take out of it. You have to face change positively and not sit on your hands.”

use to stay competitive as well. Technology can be used to streamline your business in order to free up time so you can spend it with your clients rather than on backroom activities.

Ensuring you have an online presence on LinkedIn and Twitter also helps consumers find brokers.

Daniel Carde is general manager third party distribution at Homeloans Group. He has over 23 years’ experience in the finance industry, working in both the bank and non-bank sectors..

PEOPLE

BIG INTERVIEW

DAVID BAILEY: A FUTURE UNKNOWN No one knows for certain what will come out of the royal commission for brokers. But AFG’s CEO is confident that the industry – and brokers – will prevail. Just hold steady

AFG MAY be a publicly listed company with significant clout in the broking and finance industry, but its CEO, David Bailey, admits that he’s as much in the dark as everyone else when it comes to the long-term consequences of the royal commission.

No matter how well placed you are, no one knows what’s to come.

Bailey understands brokers’ current state of mind, but he is reassured by the huge amount of support behind the channel.

“How would anyone feel if their livelihood was threatened? [Brokers are] hurt, they’re confused, and it’s a distraction from what they’re trying to achieve,” he says.

“They will all say that every customer they talk to gets a good outcome because that’s what they do. … And it’s the role of organisations like AFG to look out for them to make sure that they continue.”

The most important thing brokers can do as they wait for the royal commission’s recommendations is put the customer’s needs front and centre, Bailey says.

“Unfortunately, the royal commission has come at the same time as the Productivity Commission and the ASIC review, so it feels

12

www.mpamagazine.com.au

as if brokers are in the spotlight.

“Our position is, at 55% of all flow of a major asset class of the Australian economy, which affects so many consumers, [the sector] should have regulatory oversight.

being conflicted. To that end, we need to look to respond”.

With the Combined Industry Forum’s proposed reforms, together with increased regulatory oversight across the board, Bailey

“Put the customer front and centre and I think that won’t be lost on the regulators at the end of the day. The ramifications of destroying the broker channel are a bigger problem” We should embrace that because it means brokers are successful.”

Bailey thinks most customers accept that brokers need to be paid in a manner that recognises the time and effort they put towards finding the right loan for each customer. “It’s a service that allows access to all Australians, irrespective of income level.”

On commissions While Bailey doesn’t think the current remuneration model is conflicted, “I would also argue that it has the appearance of

believes brokers’ commission structure will prove sustainable and aligned with customer interests.

“If a broker gives a poor outcome to a consumer, then it’s self-defeating to their own business model and their ability to generate future leads.”

Bailey doesn’t know if fee-for-service will be an eventuality.

“AFG’s position is that the model’s not broken and the changes being implemented [by the CIF] … will achieve the balance,” he says.

PROFILE Name: David Bailey Title: CEO Company: Australian Finance Group Years in the industry: 14 Career highlight: “Going public and our first RMBS issue. It positioned AFG as a strong independent operator, and the RMBS proved that loans written by our brokers would be accepted by investors from across the world.”

Career lowlight: “The GFC. Some tough decisions had to be made with good people, and consumer choice and consumer outcomes got impacted.”

www.mpamagazine.com.au

13

PEOPLE

BIG INTERVIEW

AFG wrote in its response to the Productivity Commission that the four major banks would be the only beneficiaries of such a drastic move.

“The presence of the mortgage broking channel is one of the few drivers of competitive tension in the Australian lending market. A consumer dealing directly with a lender has limited negotiating power or knowledge of the interest rates and lending criteria offered by competitors,” the submission said.

However, the aggregator also wrote that trail incentives should be tweaked to eliminate gradual increases over time.

“The flat commission structure is important because, if you’re having an ongoing conversation with the client, you need to make sure the loan is still fit for purpose. Just as an increased loan amount may represent a conflict of interest, potentially a stepped-up trail represents a conflict of interest as well,” Bailey says.

“How would anyone feel if their livelihood was threatened? They’re hurt, they’re confused, and it’s a distraction from what they’re trying to achieve” Bailey explains that being champions of the industry doesn’t always call for a public display. It’s about choosing when and how to get your message across in the most powerful way.

“It’s an emotional time, but there have been no decisions,” he says. “There’s no call to action

AFG BY THE NUMBERS

Established in Backing brokers At MPA’s Aggregators Roundtable in May, a broker asked what aggregators were doing to stand up for them.

Bailey says AFG has been very vocal.

For every major review, AFG has contributed a response.

“We’ve been to Canberra, we’ve spoken to politicians, we’ve organised meetings with politicians in their local ridings, we’ve engaged with the regulators on an ongoing basis. And this is outside of being actively involved in the CIF,” he says.

“We are not an organisation that jumps up and trumps up every time we go talk to a politician, but the level of activity within our organisation on advocacy continues to be high.”

During the MPA roundtable, some brokers submitted questions as to why aggregators hadn’t come together to launch a publicity campaign supporting the third party channel.

14

www.mpamagazine.com.au

1994

3,800+

finance products with a range of lenders

2,900 finance brokers

~10,000

Australians helped to get a loan each month

$140bn

45

loan book

lenders on panel

>40%

200

market share held by non-majors

staff members

yet, so yes, you should be saying things … at the right time. But at the end of the day it’s about choosing the time to speak up and when and where your voice will be best heard.”

What should brokers do now?

As regulatory oversight increases, brokers need to focus on ongoing training, which is why AFG has rolled out Learn, an extensive suite of courses, training events and professional development opportunities available through its broker portal. Its new Pipeline workflow management tool will help brokers juggle their daily requirements and tasks while keeping better track of customers.

The aggregator’s new AFG Business platform and accompanying boot camp teaches residential mortgage brokers how to diversify into commercial finance to leverage new income streams.

And its recent acquisition of 30% of Thinktank will allow it to distribute a white label commercial property product through its broking network.

While Bailey expects the regulatory uncertainty to continue for at least another year, he says brokers should remain focused on helping their clients, and trust that industry bodies and organisations like AFG, which have aligned interests with brokers, will be working hard to promote and defend the industry.

“Put the customer front and centre and I think that won’t be lost on the regulators at the end of the day. The ramifications of destroying the broker channel are a bigger problem.”

SPECIAL REPORT

BROKERS ON AGGREGATORS

BROKERS ON AGGREGATORS As times change, brokers make it clear which aggregators they favour: the ones that are constantly innovating, communicating and providing support. And the competition is heating up

ACROSS THE board, aggregators fared well in this year’s survey of brokers, gaining positive reviews in a number of surprising areas. The majority of brokers say they’re happy with their fee/commission split, they find their aggregator’s professional development days useful, and they aren’t concerned about any hidden costs.

This was a far cry from MPA’s March 2018 Brokers on Banks survey, when brokers didn’t hold back their complaints or low grades.

In this survey of brokers on aggregators, their comments were refreshingly different, with several praising their aggregator’s service and leadership teams.

We either had a really cheerful bunch of brokers filling out this year’s survey, or brokers are becoming more dependent on, and less disgruntled by, the one thing that remains constant in their lives: their aggregator.

During this time of immense flux, it’s

16

www.mpamagazine.com.au

understandable why the majority of brokers say they don’t plan to switch aggregators. But it’s not just a sign of the times or how much work it is. The aggregators on this list are working hard to maintain their brokers’ loyalty and business, and show here how they’ve earned it.

Aggregator leaders are constantly talking about how they’re improving their CRM and IT platforms, what new education and training modules they’re launching, and how they’re backing their brokers’ diversification strategies. It’s not just talk.

The best aggregators are the ones that are constantly innovating.

The top aggregators in this report show that their strength lies not in just one field but across the gamut. They know that a successful brokerage relies just as much on a robust compliance and communication system as it does on marketing support and a quality

lending panel. They’re becoming a more important partner to their brokers, catering to their growing needs in an evolving market.

It’s worth acknowledging the optimistic tone of this report because, with further commission changes likely to come, brokers and aggregators might not be in such an agreeable mood next year. That said, if all these aggregators keep up the good work, we’re going to see the competition heat up.

In our Final Results section, you’ll find details on what made the top five aggregators stand out, and following that there’s an interview with the managing director of 2018’s Aggregator of the Year.

This year’s survey saw a good cross-section of participation across states, ages, years in the industry and settlement volume. We greatly appreciate you taking the time to rate your own aggregator and share your experiences.

OUR TYPICAL RESPONDENT $60m+

Years in the industry

26%

$0–$10m

8% 9% Years in the Industry 27%

$40,000,001–$60m

11–20 years

Settlement volume

19%

Aged between 46 and 55 (32%)

Based in VIC (32%), NSW (29%) and Qld (19%)

6–10 years

25%

27%

29%

$20,000,001–$40m

2–5 years $10,000,001–$20m

WHAT DO BROKERS WANT? 1 = not important; 5 = very important Accurate and on-time commission payments

4.67

Quality of lending panel

4.60

IT and CRM support

4.50

Compliance support

4.48

BDM support

4.39

Communication with brokers

4.32

Training and education

4.17

Additional income streams

3.76

Marketing support

3.55

White label offering Lead generation

3.41 2.93

www.mpamagazine.com.au

17

SPECIAL REPORT

BROKERS ON AGGREGATORS

BROKERS’ TOP PRIORITIES Most brokers are satisfied with their respective aggregators, but if they were to leave, some said vertical integration would be one of the reasons HOW LIKELY ARE YOU TO LEAVE YOUR AGGREGATOR IN THE NEXT 12 MONTHS? Likely Neutral

Extremely likely 5% 5%

7% 7%

75%

Unlikely

Extremely unlikely

AS THE regulatory environment becomes tougher on brokers, aggregators have the opportunity to assert their importance within the channel. Not only are brokers counting on them to stand up for the work they do and the value they provide, but brokers are also going to become more reliant on the back-end support and tools aggregators offer.

As commissions become harder to earn – and are potentially reduced – brokers will expect aggregators to keep pace and deliver even better services to earn the split they receive.

Our survey shows that brokers rank accurate and on-time commission payments just slightly ahead of a quality lending panel.

While commission payment is understandably the most important service an aggregator can offer, it’s not the top reason why a broker would abandon ship. That is instead attributed

TOP 5 REASONS TO LEAVE YOUR AGGREGATOR Poor IT and CRM support

45%

Poor accuracy and timeliness of commission payments

44%

Poor BDM support

41%

Poor quality of lending panel Poor compliance support

33% 30%

Note: Percentages do not add up to 100 as respondents could select multiple options

18

www.mpamagazine.com.au

to poor IT and CRM support.

It seems brokers have higher expectations of their aggregators’ IT and CRM support, likely due to the increase in compliance and regulatory demands.

IT and CRM support moved up a spot to third place, ahead of compliance support, on the list of brokers’ top wants.

Surprisingly, lead generation ranked at the very bottom of the list. However, this could have to do with the fact that 65% of the survey respondents have been in the industry for more than five years and are likely to have established referral networks already.

That said, brokers don’t look ready to leave their aggregators any time soon. Three quarters of respondents said it was extremely unlikely they would change aggregators in the next 12 months, up slightly from last year’s results.

Just 10% of brokers said they were ‘likely’ or ‘extremely likely’ to leave their aggregator, which is the same as last year. The top four reasons they would leave include poor IT and CRM support, poor accuracy and timeliness of commission payments, and poor BDM support.

When asked to elaborate on other reasons they might consider leaving their aggregator, brokers made some interesting comments in light of recent conversations surrounding vertical integration and conflicts of interest.

“Bank ownership and lack of support of brokers in face of royal commission,” a South Australian broker responded.

“Conflict of interest due to ownership

structure,” a Victorian broker wrote.

Vertical integration in the broker channel has garnered some negative attention from the Productivity Commission and royal commission and will likely continue to be monitored, if not tweaked, in the future.

“The channelling of products offered to consumers through the vertical integration of brokers and other distribution channels can mean these consumers are not given the choice of products that are better for them,” the Productivity Commission wrote in its report into competition in the financial services sector.

As industry changes continue, brokers are going to become more reliant on the backend support and tools aggregators provide As industry changes continue, one of the most important things an aggregator can do is communicate with its brokers, something Finsure is clearly excelling at.

No matter whether it’s top boss John Kolenda, who directly reaches out to brokers, or another member of the team, Finsure is quick to help and bolster its brokers’ businesses in any way it can.

“All Finsure brokers have access to our support services, which are aimed at taking their business to the next level,” says managing director Kolenda. “They can access anyone across the entire team, including marketing, commissions, administration and compliance.”

Finsure’s brokers are each assigned a dedicated BDM who will stay with them during their entire career and be their first point of contact. The aggregator also holds quarterly PD days for its network nationwide.

HIGHLIGHTS: SERVICE AND SUPPORT BDM support

BDM SUPPORT

BDM SUPPORT

BDM SUPPORT

Brokers on Aggregators 2018

Brokers on Aggregators 2018

Brokers on Aggregators 2018

Finsure

PLAN Australia

Outsource Financial

COMPLIANCE SUPPORT

COMPLIANCE SUPPORT

COMPLIANCE SUPPORT

Brokers on Aggregators 2018

Brokers on Aggregators 2018

Brokers on Aggregators 2018

Compliance support

Finsure

Connective

IT AND CRM SUPPORT

IT AND CRM SUPPORT

IT AND CRM SUPPORT

Brokers on Aggregators 2018

Brokers on Aggregators 2018

Brokers on Aggregators 2018

PLAN Australia IT and CRM support

Connective

PLAN Australia

Liberty Network Services

Communication with brokers

COMMUNICATION WITH BROKERS

COMMUNICATION WITH BROKERS

COMMUNICATION WITH BROKERS

Brokers on Aggregators 2018

Brokers on Aggregators 2018

Brokers on Aggregators 2018

Finsure

Connective

PLAN Australia

www.mpamagazine.com.au

19

SPECIAL REPORT

BROKERS ON AGGREGATORS

GETTING PAID Brokers are generally satisfied with their aggregator’s fee/commission split, but a few said they were seeing more costs filter down to them due to increased compliance demands

AGGREGATORS WILL be delighted to see that the majority of brokers are satisfied with their fee/commission split and aren’t overly concerned about hidden costs. The results were nearly identical last year.

AFG took gold for accurate and timely commission payments. Mark Hewitt, AFG’s general manager, broker and residential, explained that the aggregator makes weekly upfront commission payments. “We are very aware that as custodians of our brokers’ income, these are non-negotiables. Regular cash flow is vital to small business,” he says.

Among the 6% who said hidden fees were a problem at their aggregator, some complained about an uplift in fees as a result of increased compliance costs.

Those brokers making $60m or more are more likely to be on a flat-fee commission model One Victorian franchisee said it was not so much hidden costs that were the problem but excessive costs. “Upfront and trail [are] based on a monthly rolling settlement average. Bad

COMMISSION STRUCTURES AND SUCCESS Commission split

25%

month and commissions get halved,” he said.

While most brokers are on a commissionsplit model (63% of total), or a flat-fee model (30%), and only a very small percentage are on a

Flat fee

Transaction fee

transaction fee (7%), that is not the case when it comes to the brokers making the most money.

Brokers who are making $60m or more are more likely to be on a flat-fee commission model.

ARE YOU HAPPY WITH THE FEE/COMMISSION SPLIT?

$0-$10m

Percentage of respondents

$10,000,001-$20m

20% $20,000,001-$40m

15%

YES (88%)

10%

NO (12%)

$40,000,001-$60m $60m+

5% 0%

Settlement volume

ARE HIDDEN COSTS IMPOSED BY YOUR AGGREGATOR A PROBLEM?

94% Not a problem

20

www.mpamagazine.com.au

3% 3% Problem

Major problem

SPECIAL REPORT

BROKERS ON AGGREGATORS

Remuneration structures have been the talk of the town at aggregator professional development days, broker networking events and the Combined Industry Forum. Some lenders have already begun making tweaks to commission.

ANZ announced it would be increasing its upfront commission to 62.5 basis points from 57.5, and levelling the playing field so that brokers settling more than $100m don’t receive any more than that base amount.

Bankwest has made changes to trail, reintroducing Year 1 trail but reducing trail in Year 3, Year 5 and onwards.

As a result of [PLAN's] relentless focus on diversification ... asset finance volumes jumped by 37% from $188.5m to $258.9m With brokers potentially facing a decrease in commissions, having a strong diversification strategy will become increasingly important.

PLAN Australia took top prize in the ‘additional income streams’ category. As a result of the aggregator’s relentless focus on diversification, its brokers’ commercial volumes increased by 0.6% from $1.48bn to $1.49bn in the 2017 calendar year, while asset finance volumes jumped by 37% from $188.5m to $258.9m.

“For members seeking new and ongoing business opportunities, we also work with them to find strong and reliable referral partners, such as accountants or financial planners, who can help generate quality leads,” said PLAN CEO Anja Pannek.

22

www.mpamagazine.com.au

HIGHLIGHTS: MONEY MATTERS

Accurate and on-time commission

ACCURATE AND ON-TIME COMMISSION PAYMENTS

ACCURATE AND ON-TIME COMMISSION PAYMENTS

ACCURATE AND ON-TIME COMMISSION PAYMENTS

Brokers on Aggregators 2018

Brokers on Aggregators 2018

Brokers on Aggregators 2018

FAST

Connective

ADDITIONAL INCOME STREAMS

ADDITIONAL INCOME STREAMS

ADDITIONAL INCOME STREAMS

Brokers on Aggregators 2018

Brokers on Aggregators 2018

Brokers on Aggregators 2018

Australian Finance Group

Additional income streams

PLAN Australia

Liberty Network Services

Finsure

WHITE LABEL OFFERING

WHITE LABEL OFFERING

WHITE LABEL OFFERING

Brokers on Aggregators 2018

Brokers on Aggregators 2018

Brokers on Aggregators 2018

White label offering

Finsure

Australian Finance Group

PLAN Australia

GROWING YOUR BUSINESS The aggregators that are expanding their education and training offerings and diversifying their lending panels are the ones winning brokers

HOW USEFUL ARE YOUR AGGREGATOR’S PD DAYS?

13%

35%

53%

Not useful at all

Useful

Very useful

MAIN OBSTACLE TO LEAVING AN AGGREGATOR Data migration/IT issues 36% Clawbacks/trail issues 20% Contractual obligations 15% Other 13% Licensing issues 8% Loss of back-office services 4% Loss of marketing services 3% Upfront commission issues

1%

MOST AGGREGATORS are putting greater emphasis on education and training as the regulatory and compliance environments respond to heightened scrutiny.

Liberty Network Services won in the ‘training and education’ category this year. It provides significant training opportunities to its brokers, including webinars, state forums, local small group sessions and national conferences.

It also received the top grade for ‘marketing support’, likely because of its scheme to contribute dollar-for-dollar support to brokers for local marketing, such as local cinema advertisements or digital geo-targeting. It’s these bright ideas that are keeping this small aggregator ahead of the curve.

With its 24-month broker academy to train new entrants and its annual business planning and sales coaching initiatives, Finsure claimed a close second place in the ‘training and education’ category.

With many aggregators offering perks and support of this type, it makes sense that most brokers are hesitant to switch aggregators.

For those who have considered it, it’s also not an easy process. Several obstacles have held them back, chief among them data migration and IT issues.

Some other concerns include transferring lender accreditations, with CBA specifically

www.mpamagazine.com.au

23

SPECIAL REPORT

BROKERS ON AGGREGATORS

HIGHLIGHTS: BUSINESS DEVELOPMENT Lead generation

LEAD GENERATION

LEAD GENERATION

LEAD GENERATION

Brokers on Aggregators 2018

Brokers on Aggregators 2018

Brokers on Aggregators 2018

Australian Finance Group

Choice Aggregation Services

Liberty Network Services Marketing support

MARKETING SUPPORT

MARKETING SUPPORT

MARKETING SUPPORT

Brokers on Aggregators 2018

Brokers on Aggregators 2018

Brokers on Aggregators 2018

PLAN Australia

Australian Finance Group

Liberty Network Services Quality of lending panel

QUALITY OF LENDING PANEL

QUALITY OF LENDING PANEL

QUALITY OF LENDING PANEL

Brokers on Aggregators 2018

Brokers on Aggregators 2018

Brokers on Aggregators 2018

Finsure

Australian Finance Group

PLAN Australia

TRAINING AND EDUCATION

TRAINING AND EDUCATION

TRAINING AND EDUCATION

Brokers on Aggregators 2018

Brokers on Aggregators 2018

Brokers on Aggregators 2018

Training and education

Liberty Network Services

24

www.mpamagazine.com.au

Finsure

Australian Finance Group

mentioned, losing personal relationships, and a delay in earnings.

While most brokers didn’t rank lead generation as a particularly high priority, when asked what service their aggregator could improve upon, many said leads.

One broker suggested lead generation for commercial loans, while others welcomed lead generation relevant to geographic areas or specifically geared to newer brokers.

Brokers are also looking for a quality lending panel. Finsure won in this category as well, and this follows the recent announcement

When asked which lenders they would like to see added to their aggregator’s panel, many brokers said credit unions that the aggregator will be partnering with peer-to-peer lender RateSetter to offer its 1,400 brokers access to personal loans and green loan products.

When asked which lenders they would like to see added to their aggregator’s panel, many brokers said credit unions, building societies and mutual banks, such as CUA, Bank of Australia, Newcastle Permanent and People’s Choice Credit Union.

The most popular choice of non-bank was HSBC, followed by ME. Better Mortgage Management also emerged as another popular alternative.

One broker said they’d like to see “more consumer loan providers” on their aggregator’s panel “to ensure we offer a onestop shop for a client’s lending needs”.

Another wanted “more credit unions for their great offers that give customers more choice”.

WHAT YOU’RE SAYING What do you think of the Productivity Commission’s proposal for bank-owned aggregators and their brokers to have a legal duty to act in the ‘best interest’ of customers?

"It is perfectly reasonable. To be considered a professional service, much like a solicitor or accountant, mortgage brokers have a duty of care to their clients. It demonstrates the government's leadership on a very important issue to Australian consumers" – Qld broker

“In theory a great idea. The two major challenges are A) How do you define best interest of the customer? B) How do you legislate against greed or dishonesty? The likely outcome is either additional compliance/paperwork that adds no value, or lender proposals that appear to be cost-saving measures (eg reduced payments based on ‘net of offset’ positions)” – Vic broker

”They must. Absolutely. If brokers are to be trusted and relied upon by consumers who may have little knowledge of financial products, ALL brokers should be recommending products based on the best interest of the client. Eliminate incentives/bonuses altogether” – Vic broker

“Brokers already work in the best interests of their clients, and the Productivity Commission does not seem to understand or recognise that fact. No doubt there are a few who flout this requirement, but making what we already do become a legal duty is bureaucracy gone mad” – WA broker

Hundreds of brokers responded to our prizewinning question, but we could only choose one lucky recipient. This broker in Queensland will receive a bottle of The Macallan 12-year-old double cask single malt Scotch whisky (RRP $109.95) courtesy of MPA. Enjoy!

“I completely agree with this. If we aren’t acting in the clients’ best interests, then what are we doing as an industry? As an industry if we can lead this, it will demonstrate how much better we are than the banks” – NSW broker

WINNING COMMENT

”I agree with the legal requirement of ‘best interest’ for brokers regardless of aggregators being bank-owned or not. The vast majority of brokers work with the clients’ best interest in any case, and if they don’t then they should not be working in the industry.

Legalising brokers to act in clients’ best interest would bring them in line with other professions and lift our standing in the community.”

“Best interest is difficult to define, and I believe the definition of a good consumer outcome agreed on by the CIF is sufficient as long as ownership structures are fully disclosed” – NSW broker

“Firstly, I don’t believe that banks should own any vertically integrated aggregators.

This would avoid any conflicts of interest from the outset. To have a legal duty is exceptionally onerous, especially given that consumers’ circumstances constantly change. There should not be a legal duty but an ‘ethical duty’ in the best interest of the client” – NSW broker

“It boggles the mind that we live in a time where we have to make this a ‘legal’ requirement. Of course we should be acting in the best interest of our customers. Whether it’s a legal requirement or not, good brokers will continue to act in the best interest of their customers, and rubbish brokers will not” – ACT broker

www.mpamagazine.com.au

25

SPECIAL REPORT

BROKERS ON AGGREGATORS

26

www.mpamagazine.com.au

www.mpamagazine.com.au

27

SPECIAL REPORT

BROKERS ON AGGREGATORS

FINAL RESULTS The top aggregators showed strengths across a number of categories, proving that success comes from supporting every facet of a broker’s business 5th

CONNECTIVE

Overall score: 4.0009

1

4th

1

2

MPA: Connective has consistently done well in the IT and CRM support category.

Why is this so important to brokers?

Mark Haron, director: The right technology is vital to business success today and will become increasingly important in the future. Customers expect to be able to communicate through whatever devices and apps they want, to access fast, accurate and personalised service every time.

Only a purpose-built IT platform and CRM that constantly evolves in step with the needs of brokers will meet their ever-growing and changing demands. Brokers are not IT experts, so it’s imperative that we provide them with the right technology and support services that make it easy and cost-effective for them to stay on top.

2nd

PLAN AUSTRALIA

Overall score: 4.109

2

3

3rd

3

MPA: PLAN took first place in the 'additional income streams' category.

What do you think accounts for that, and how is PLAN helping brokers diversify?

Anja Pannek, CEO: PLAN Australia understands the value that can come from positioning yourself as a ‘one-stop shop’. We actively support and encourage members to expand into arenas such as commercial and asset finance to grow their businesses, providing training and access to lenders to facilitate this.

We assist brokers in fulfilling the commercial and asset finance needs of their customer base. This includes providing access, training and support to brokers who need to work with the commercial and asset finance lenders on our panel. We partner with our members.

AFG

Overall score: 4.111

1

3

2

MPA: Why have brokers ranked AFG first for accurate and on-time commission payments?

Mark Hewitt, general manager, broker and residential: AFG is extremely pleased to win the gold medal in this category. We believe brokers regard the safe and timely payment of their commission as the most important factor when selecting an aggregator.

We are very aware that, as custodians of our brokers’ income, these are nonnegotiables. Regular cash flow is vital to small business, which is why we make weekly upfront commission payments.

Brokers also tell us our ability to split and pass on commission at multiple levels is a key factor in choosing AFG.

LIBERTY NETWORK SERVICES

Overall score: 4.241

3

1

1

MPA: LNS won the gold medal in lead generation. What’s the trick to providing good leads to your brokers?

Brendan O’Donnell, managing director: LNS embraces an agile methodology for all of its marketing efforts, which means we’re constantly testing the work we do to ensure we are getting results. This allows us to have a better understanding of where the leads come from, and as a result we continuously deliver on leads each and every day.

All advisers receive leads, and where we have local geographies that are lower in lead flow, we initiate targeted local area digital marketing to help increase digital leads for that area. It works well!

We also provide a comprehensive marketing program that touches multiple mediums, so advisers have the best opportunity to get good leads and grow their businesses.

28

www.mpamagazine.com.au

1st

FINSURE REIGNS

This year’s top-performing aggregator was not about to settle for second again.

Managing director John Kolenda explains how Finsure emerged ahead of the pack to capture gold

MPA: Finsure came in second last year.

What made the difference this year?

John Kolenda: Since we established Finsure in 2011, we have always tried to keep evolving to meet the demands of an ever-changing market to provide more value for our brokers. We have worked hard to add value across all areas and believe Finsure offers an unrivalled service proposition to brokers.

All Finsure brokers can get all their business needs met under one roof. Our members really appreciate this and will hopefully continue to rate our proposition favourably across all categories.

This year we invested heavily in technology to provide brokers with additional cutting-edge solutions to identify new customers as well as retain existing customers. Finsure utilises its own online proprietary CRM/broker platform, which automatically communicates with all associated parties about the customer’s property purchase.

Other key initiatives developed over the past year include the introduction of our Broker Academy to assist new-to-industry brokers; dedicated credit coaching for existing members to improve loan structuring; and the introduction of our digital marketing strategy to offer brokers website-building capabilities and education on optimising digital assets.

MPA: How is Finsure planning to help brokers deal with the increasingly complex and challenging regulatory and lending market?

JK: There are many macro risks that will always pose significant threats – house price changes, legislative changes and funding markets which impact lender credit appetite. All have the potential to significantly impact a broker’s business. The current lending landscape is the most complex I have experienced in more than 25 years. The spotlight on banks from the royal commission is also making home finance more difficult, particularly through tighter controls on customer living expenses. Finsure has placed a large amount of resources into education and training programs to keep brokers abreast of these changes so they are able to continue to provide clients with the highest standards of service and expertise.

We are also investing significantly in digital capabilities to help our brokers improve customer experiences and engagement.

MPA: Lead generation was identified as needing improvement by aggregators.

How is Finsure working on that?

JK: Our marketing team is heavily invested in generating leads across multiple brands and consumer offerings. A dedicated team of call centre professionals prequalify all raw leads over the phone. All enquiries to our multibranded leads model are prequalified, and key information is sent via email with a recording of the conversation, allowing brokers to prepare in advance to assist their customers. Our marketing team also offers content for brokers’ social media feeds, a website development service, a public relations service for individual brokers, and free audits of a broker’s website to enhance lead generation and brand positioning. They will also sit down with a broker to map out their entire marketing strategy. And all strategy consultations are completely free!

“Finsure brokers can get all their business needs met under one roof. Our members really appreciate this”

www.mpamagazine.com.au

29

FEATURES

TOP BDMS

BDMS IN THE SPOTLIGHT In this inaugural report, we celebrate some of the best BDMs in the business and look at how brokers and BDMs can work in tandem to get the most out of these crucial partnerships

WHEN A broker likes their BDM, you’ll never hear the end of it. As a BDM, that’s exactly where you most want to be: mentioned in conversation as someone brokers want to boast about.

That’s because brokers recognise that having a successful BDM relationship is one of the most valuable tools they can have in their arsenal.

In a number of MPA’s surveys, brokers have dropped the name of their BDM or mentioned that that’s one of the main reasons they’ve stayed with a certain aggregator or worked with a particular bank – the person they call when the going gets tough is often their BDM. In broking, relationships matter on all sides: between the broker and the customer;

30

www.mpamagazine.com.au

the BDM and the broker; and between the BDMs representing the aggregator and lender. This business may involve a lot of number crunching, but it’s really all about people.

The people you’ll hear about on the following pages are some of the best BDMs in the business. They stand out because of their passion and dedication to making a difference in the lives of their brokers and their customers.

These BDMs are masters of the basics – they’re responsive, timely and informed – but they also go above and beyond the bare minimum. They’re consistently seeking new ways to increase their knowledge of the industry and of other products and policies so they can pass that on to their broker partners, to help them expand their businesses and better meet the needs of their clients.

They do what it takes to help their brokers find solutions, even if that means recommending they go elsewhere, or to the competition.

Just like any relationship, however, the responsibility of maintaining trust and transparency doesn’t fall only on the BDM. If brokers want to get the most out of this support structure, they need to treat BDMs and their staff with respect, even when they say no. You’d expect that would be common sense in a professional setting, but you’ll occasionally hear some shocking stories about brokers’ poor behaviour and treatment of BDMs. (And vice versa.)

In this issue, we’re celebrating the BDMs who show exemplary behaviour in dealing with brokers. We talk to them about the skills and techniques they bring to the job, and what they need from brokers to ensure these partnerships prove fruitful for everyone.

The expertise and experience these BDMs bring to the job will see brokers through the changes and challenges to come. Just wait and see.

FEATURES

TOP BDMS

ANGELA D’ANGELO SA/NT Being still somewhat new to the BDM role at Choice has given Angela D’Angelo a fresh perspective.

“Because it is such a complex role, I am continually building my knowledge on a daily basis. I question why things are done a certain way and go out of my way to find solutions and follow things through if I know it will make it easier for our members,” she says.

What she enjoys most is seeing members succeed. “I closely engage with our members to understand what their goals are and what success means to them personally, and from there it’s about helping them put plans in place to achieve their goals.”

To support her learning journey and that of her brokers, D’Angelo attends lender professional

development days, credit workshops and industry events so she can pass on those takeaways to her network. She also helps new brokers align themselves with referrers, arranging meetings and accompanying them to their first appointment to provide support.

Ingrained in the Choice culture is peer-to-peer learning. “Not only do new members of Choice benefit from peer-to-peer learning, but our long-term members who attend also enjoy the sessions,” D’Angelo says.

“I love seeing our members share experiences, their thoughts and any quick wins with each other. It is also rewarding seeing members continue to engage with each other after each of these sessions and form friendships.”

TIMOTHY SCHNEIDER VIC ”My biggest differentiator is my ability to connect people. And it’s also what I enjoy the most about being a BDM,” says Choice BDM Timothy Schneider.

After 15 years in banking, he’s built an extensive network of business partners, colleagues, leaders, peers and friends, “which means regardless of the situation, question or requirement, I will always have someone to assist with the solution”.

“Whether that’s putting a broker in front of a subject-matter expert or partnering brokers together to share experiences, I consistently see genuine value when these connections are made,” he says.

There are many layers to the aggregator BDM role, the most important being versatility,

Schneider explains. “Whether it’s compliance, marketing, business planning, networking, managing people, lending scenarios – and the list goes on – we need to be able to provide expert advice to help our brokers navigate the complexities of running a broking business.”

And when you don’t have the answer, you need to know who to turn to – that’s where those strong relationships count.

“Brokers need to trust in me to provide them with the right advice, connect them with the right experts and help them build the right processes and procedures in their business. … Equally, I need to trust my brokers to ensure they are providing the right advice to their clients.”

www.mpamagazine.com.au

31

FEATURES

TOP BDMS

PATRICK CLARKSON NSW With vast experience across the mortgage and finance space, Patrick Clarkson is the type of aggregator BDM that brokers want on their side. He’s worked as a loan writer, compliance manager and sales manager, and has overseen high-volume processing areas – all of which have given him a great understanding of the many facets of broking.

“Honesty and integrity, combined with my experience, enables me to have credible, open and honest conversations. The partnership manager role at FAST is designed to support brokers in their business according to their needs,” he says.

As an aggregator BDM, Clarkson says he wears “a few hats”.

“We need to understand each of our brokers’

businesses, as well as being across areas such as lending changes, compliance, and responsible lending obligations, to name a few. In the changing environment, it is critical we maintain our knowledge and standards to ensure we can assist our brokers so they can deliver good outcomes for customers.”

Clarkson says, when his brokers need assistance on finding a lending solution, the most effective method is to identify what that might be and then facilitate a meeting between the broker and lender so they can discuss the application directly.

“At FAST, we work closely with our lender BDMs to ensure we are across their policies and current appetites so we can support our brokers with the information they need for their customers.”

MAREE MADITIANOS VIC FAST BDM Maree Maditianos’s awareness and knowledge of what’s going on in the industry enables her to understand the main priorities for her brokers.

“There are many brokers and lender partners that rely on me to perform on a daily basis, and I will always ensure I take the time to truly understand what my brokers are trying to achieve from a personal, business and customer perspective,” says Maditianos, who has been with FAST for 11 years.

Since her partners are experienced brokers with a wealth of banking experience, they don’t rely on her to find solutions for their clients. “They do, however, rely on me to assist them with the relationships that

32

www.mpamagazine.com.au

we have with lenders/business partners and industry experts to open up, share, and introduce those key contacts,” she says.

Maditianos’s brokers also look to her for guidance outside their area of expertise, such as by helping a home loan broker prepare their first reverse mortgage or secure funding from a specialist lender for a small business client.

With the ability to adjust and reinvent herself, Maditianos is confident she’ll be helping brokers for many more years to come. “Many like their jobs, some tolerate them, but I love my job! I identified very early on that if you put in a concerted effort to assist and give assistance this will sustain a strong and loyal relationship.”

FEATURES

TOP BDMS

TRACEY CREVATIN VIC/TAS Training and education is part of the foundation of PLAN Australia and BDM Tracey Crevatin’s work ethos. “I am always looking to develop myself to improve my performance and bring something extra to my brokers,” she says.

“This core belief drives me to mentor other team members to ensure they too experience success,” says Crevatin, who has been at PLAN for 10 years. This is not exclusive to other BDMs but also extends to administrative staff who are integral to the business.

“It’s a huge part of who I am. For me to consider myself successful, PLAN Australia, my colleagues and my brokers must also be successful, and I know I have a part to play in that success.”

Together with her lender partners, Crevatin ensures any questions or concerns her brokers

have are resolved efficiently and effectively.

“In an ever-changing lender relationship landscape, I pride myself on knowing exactly who to contact to discuss any broker-related query with any lender at any time. This also applies to our internal stakeholders.”

Building a strong, trusting rapport with brokers, lenders and support partners is imperative, she says. That’s also part of the group’s belief that great progress is driven by great partnerships.

“To be a successful aggregator BDM, you need to be part-counsellor, be a great listener, understand your broker’s motivations to be in business, and understand their business goals.

Armed with that knowledge, I am able to exceed expectations and deliver a quality and consistent experience every time.”

GREG COOKE NSW PLAN Australia’s Greg Cooke is a better BDM because he was once a broker. The skills and experiences he gained working as a broker are the ones he is now able to pass on to his broker partners, such as the ability to establish debt referral relationships within the financial planning and accounting space.

“Educating brokers about how to engage these professionals, what is important in these relationships, and how to make them work is my unique skill,” he says.

He has embraced technology to make education sessions more convenient for brokers. He runs webinars on lender updates, Podium efficiencies, compliance support, building referral networks, and future-proofing brokers’ businesses.

“It is vitally important, as the aggregator our members choose to partner with, that we effectively deliver communication to all members that will assist them in delivering the best customer outcomes to their clients, regardless of where they are located,” he says.

Cooke says the most important thing about being a good BDM is mastering the “brilliant basics”. “You need to remember at the end of every phone call and every email that there is a customer who is seeking your help or guidance.

Being available, responsive and informed about the market, and helping brokers navigate this, is the most important aspect of my role.”

Successful brokers will be the ones who are “agile, adaptable and inspired by the opportunity significant change brings”, he says.

www.mpamagazine.com.au

33

FEATURES

TOP BDMS

SCOTT NESBIT WA Without a doubt, what Scott Nesbit brings to the job is plenty of experience.

Having been a senior commercial BDM at ANZ for the past nine years and in the business banking space for 25 years, he’s been presented with scenarios and deals spanning a range of segments and industries.

“Brokers detest a drawn-out ‘no’.

They want an experienced BDM that can quickly identify whether a deal will fit within their bank’s credit guidelines. If there is a deal to be done, I provide direction as to what questions to ask their client, what information is required, and how the deal can be structured and priced,” he says.

Most importantly, he will partner the broker with an experienced commercial banker who will ultimately do the deal and manage that client’s business banking requirements.

Brokers often ask Nesbit how they can diversify into commercial and asset finance.

He runs regular‘Introduction to Commercial’ sessions at ANZ. “These workshops help [brokers] identify opportunities within their existing self-employed databases and show how they can increase their revenue streams,” he says.

His advice to brokers is to be open to commercial lending and to stop avoiding those deals. “It’s not as hard as you might think,” he says.

“Too many times I hear from brokers, ‘I didn’t know you could do that!’ A quick phone call or an email scenario is never too much trouble. I will come back quickly with my thoughts and whether we can, and how we can, progress the opportunity further.”

34

www.mpamagazine.com.au

JIM GILES

RENATO SANZO

STEVEN MENTA

TAS

SA

VIC/TAS

Jim Giles, a BDM at ANZ, says being based in Tasmania makes it clear to brokers and referrers that the major bank values having local representation. “It gives them greater accessibility, connectivity and responsiveness in our high-paced finance industry,” he says.

With a broad understanding of the Tasmanian market, Giles is able to form genuine relationships with his local broker community, offering a more personalised, energised, ‘value-add’ service. “This enables me to be more adept and hands-on with my brokers to deliver great outcomes for the broker and their customers,” he says.

According to Giles, brokers are increasingly turning to BDMs for knowledge and guidance on expanding their service proposition to better meet customers’ evolving finance needs.

He helps them have deeper conversations with their customers and supports them in delivering the best solutions. This is especially useful when the broker lacks expertise in an area where ANZ can assist, such as in helping a small business with an asset purchase.

In his time working on commercial finance at ANZ, BDM Renato Sanzo has dealt with all manner of businesses, from start-ups to corporate clients. “There are not many opportunities or businesses that I haven’t seen before,” he says.

The key to dealing with all of them is being approachable, responsive and accurate, Sanzo says. “Being able to provide a clear solution/option for the broker is what I believe makes the difference.”

Sanzo covers all things commercial, so when a broker comes to him he knows the bank’s appetite and policy through and through.

He prides himself on being able to provide a quick, accurate response, “and if I can’t answer it myself, I will speak to someone who can and get back to the broker with a solution or option”.

“I am also seen as a point of contact when things don’t go smoothly and they require someone to get involved and find a resolution.”

ANZ BDM Steven Menta believes a broker’s secret to success is their knowledge and speed to market. “These are the key areas where a broker seeks my involvement when faced with a new commercial opportunity,” says Menta, who has nearly 30 years’ banking experience in the commercial and broker space.

He will arrange to meet the broker and will sometimes be accompanied by an ANZ commercial banker to help progress the deal.

“By working together we can truly understand the client’s needs, and I see this as the ultimate way for us to achieve a desired outcome and form an ongoing relationship,” he says.

If the opportunity does not initially meet the bank’s appetite, Menta likes to work this through with the broker to see whether they can restructure the deal to make it work.

Brokers can simply refer a commercial customer to ANZ to handle the transaction, or they can become a fully accredited commercial broker with ANZ. That means they will be expected to package and present the client’s commercial transaction to ANZ, Menta says.

How do you help brokers find a commercial solution?

“The key for commercial transactions is to clearly understand the opportunity and what the customer is trying to do. The more background and detail the broker can provide about the customer, the better. That will help us provide them with the best possible financing options” – Renato Sanzo, BDM, ANZ

www.mpamagazine.com.au

35

FEATURES

TOP BDMS

ADAM BIFFEN

KERRI SIEDOFSKY

NATHAN JONES

MELBOURNE, VIC

BRISBANE, QLD

PERTH, WA

Bankwest’s Adam Biffen does not subscribe to a one-size-fits-all approach to his brokers. His expertise in credit risk and policy allows him to consider and assess each deal thoroughly on its merits and offer alternative strategies if the deal does not meet credit guidelines.

By tailoring his approach to each broker, he aims to ensure it’s a positive experience for the broker and their end customer, rather than being purely transactional. “I enjoy being a part of the solution for the broker. And by being open and honest about Bankwest policy and processes, this builds a strong ability for the broker to propose Bankwest to their client,” he says.

Biffen takes pride in being responsive, accessible and knowledgeable to make it as easy as possible for brokers to deal with Bankwest. “I understand that helping brokers grow their business in turn grows my own.”

He says the best brokers to work with are those who are upfront about every part of their clients’ deals, which leads to an open discussion about any potential pitfalls on an application.

It’s often an underrated and underutilised skill, but being an active listener is one of the most important traits of any BDM. Just ask Bankwest’s Kerri Siedofsky, who says listening, genuinely caring, and reflecting on the customer experience and outcome are integral to the deal-making process.

“With more and more change in the industry these days it is really important that we ask more questions than ever before,” she says.

“I really enjoy knowing how processes work from all areas so should something misstep along the way I can offer ways that we can get back on track efficiently and effectively.”

Siedofsky operates according to the motto that you treat people as you would like to be treated. She says it’s also important to know when to turn away a transaction.

“You can’t be everything to everyone. Know what you are good at and be good at it,” she says.

“A successful partnership with a broker relies on trust and respect. We are all in this together and working towards the same goal.”

Having been a small business owner himself at one point, Bankwest BDM Nathan Jones has the great advantage of understanding – and empathising – with the challenges and demands that are placed on brokers.

For him, being a good BDM is about “understanding that you are the broker’s voice with the bank”.

“How we represent them and their clients can affect what happens with their applications and the client’s experience,” he says.

Bankwest’s broker support model makes it that much easier. “The team of the BDM and BSM have more time to workshop solutions to assist the broker and their client in achieving the end goal,” Jones says.

Jones is also open to getting feedback from his brokers. “I need to know what we are doing well and what we can improve.

This will allow us to provide their clients with the best experience possible.”

What do BDMs need from brokers?

“Given the change within the industry over the past few years, particularly with credit policy, regular contact between the BDM and the broker is more important than ever. For the best customer and broker experience and outcome, sending all required documents up front – along with detailed comments on the file – is a must. This is something we are more than happy to run through prior to submission” – Michael Ponchard, BDM, Bankwest

36

www.mpamagazine.com.au

MICHAEL PONCHARD SYDNEY, NSW The best BDMs are the ones who are upfront, honest and able to adapt to better support their brokers’ businesses and key priorities, according to Bankwest’s Michael Ponchard.

“Ultimately, good BDMs are accountable and accessible and genuinely add value to a broker’s business through training, deal structuring and being available to support the broker in times of need,” he says.

Thanks to Ponchard’s extensive experience in various roles at Bankwest, he has detailed knowledge of policy and processes. This allows

him to discuss scenarios up front to ensure the bank provides a great customer and broker experience every time. It also helps him quickly identify any areas that might be more complex.

“Similarly, if it’s something outside of our appetite we can give a quick ‘no’, enhancing quality and conversion for the broker.

“Each application that is submitted to Bankwest is assigned a single case owner so you deal with the same person start to finish.

Plus Bankwest gives brokers a 24-hour deal pick-up for initial assessment.”

Bankwest’s broker development model ensures Ponchard and his colleagues can provide the channel with dependable and responsive advice.

With access to a broker development manager and a desk-bound broker support manager (BSM), brokers have two points of contact at all times.

That structure also frees up time for BDMs like Ponchard, giving him the opportunity to be out and about meeting and helping as many brokers in person as possible.

www.mpamagazine.com.au

37

FEATURES

TOP BDMS

EBONY MAXWELL VIC/TAS

Bluestone BDM Ebony Maxwell is a big believer in actions speaking louder than words. “When you actually do what you say you will, your brokers love you for being available and helping them through to the end,” she says.

Maxwell aims to gain a deep understanding of exactly what her brokers’ customers are trying to achieve and why they need the loan.

“There are so many new brokers out there, so I really enjoy educating the new brokers about our space and the alternative lending options available to them outside the big banks. This makes them aware of

the solutions available so they don’t lose their customers to other brokers.”

Maxwell succeeds at getting back to brokers in a timely fashion and has knowledge they can trust when workshopping deals. And if the deal can’t be done, she doesn’t just shrug them off.

“If Bluestone is unable to assist with a loan, I will also make sure I go out of my way to point the broker in the right direction to a lender that can help. Brokers really appreciate this and remember you for the next time they have an out-of-the-box scenario.”

How can brokers and BDMs work better together?

“The biggest key is honesty and communication. There are often times when details are left out of the initial conversation and are discovered too late. This makes it difficult to set expectations and stick to them. In the same way, to the best of their abilities, BDMs should know all the information up front, so as not to mislead the broker. It goes both ways, and I find that honesty and communication play a big part in cementing broker-BDM relationships. – Ebony Maxwell, BDM, Bluestone

CRAIG MEALE NSW/ACT

What sets a BDM apart is simple: it all comes back to basics, says Bluestone BDM Craig Meale.

“A strong brand, knowledge and quick responses are the attributes people look for. Brokers don’t want to spend hours on something simple. Provide them with the solution and see it through. The money is in the follow-up,” he says.

In turn, Meale expects his brokers to be upfront, open and transparent from the get-go.

38

www.mpamagazine.com.au

“Putting your cards on the table is extremely important when dealing with a BDM. Brokers need to gather all details of a transaction and communicate them to their BDM to ensure the BDM gives them the right guidance from the beginning.”

Once Meale understands what they are trying to achieve, he tries to find the most efficient way to do it. “I do this by asking a number of questions to identify the core details of a deal then find the best solution for the client.”

CAMERON FINNIE WA/SA If you need an expert in specialist lending, Cameron Finnie at Bluestone is your guy.

After more than 20 years in the specialist and near-prime lending space, he’s become very passionate about what it can offer.

“I enjoy helping clients overcome adversity. For me it’s about trying to provide people with the best solutions so they can get on with their lives. It’s about alleviating the pressures that the customer is under and giving them some light at the end of the tunnel,” he says.

To make the process seamless, Finnie

encourages brokers to openly share the overall plan with their clients. “A lot of what we do is about educating the broker so that they’re comfortable about offering Bluestone’s solution, and to not just focus on the cost.”

Delivering an excellent service to brokers is all about doing the simple things right: “replying to emails and responding to telephone calls in a timely manner, following through with what you say you are going to do, and being available when required”.

BILL ROBB QLD

Enthusiasm, passion and education are motivating factors for Bluestone BDM Bill Robb. With an unwavering commitment to his brokers, he’s able to help them close the deal and look good in front of their clients.

“I enjoy helping educate brokers around solution-based lending via a number of different avenues, including group workshops, one-on-one training sessions and also over-the-phone discussions. I feel my best attribute here is sharing my expertise and knowledge with brokers.”

Robb spends a lot of time upskilling on other lenders’ products and policies so he can at least suggest somewhere else for brokers to go if he can’t help them. “At the end of the day it’s about the customer and finding them a solution,” he says.

Brokers want assistance, and generally want it now. If Robb is in a meeting and misses a broker’s call, he returns it right afterwards. “It isn’t that hard, but it is staggering how many ... BDMs [don’t] call the broker back.”

www.mpamagazine.com.au

39

FEATURES

TOP BDMS

ROBERT TASSONE NSW

During Robert Tassone’s 13 years at ING, he’s had the opportunity to build great relationships with brokers. “But being a BDM doesn’t stop there,” says the commercial BDM. “These relationships need to be nurtured.”

That’s why Tassone goes above and beyond to support his brokers, whether that’s over the phone, via email or face-to-face. “My brokers know that I’ll make myself available to help with anything ING-related and won’t let them down,” he says.

He also likes to show brokers how they can identify commercial opportunities and grow their businesses.

“Commercial loan structures can be quite complex. With my background as an ING credit assessor, I know what I am looking for and can quickly identify if a deal will work within the ING parameters or if we need to massage the application.”

Being a successful BDM is about being approachable, accessible and helpful to brokers – something Tassone takes to heart.

“My job is to make their job easier – helping them to be more efficient gives them time back in their day to focus on new opportunities and, most importantly, help them achieve a work-life balance.”

Learn from a BDM veteran: Robert Tassone’s daily tasks • “Whether it’s over the phone, via email or face-to-face, my brokers know that I’ll make myself available to help and support them with anything ING-related” • Going above and beyond to assist them in getting a deal over the line • Helping brokers identify commercial opportunities to grow their businesses

GERARD VEAR VIC Building relationships is a major part of what ING residential BDM Gerard Vear does every day. “I believe the positive energy and importance I place on this experience is testament to the solid relationships that I have with my brokers,” he says.

He’s also developed a best practice program tailored to make the most out of each interaction. During meetings, Vear workshops scenarios with brokers, which usually results in an application submission. His follow-up email thanks them and provides information from that meeting. Then two weeks later he will place a follow-up phone call to check if

40

www.mpamagazine.com.au

there are any further deals to work on.

His goal is to make sure every interaction adds value for the broker. He works to understand the broker’s business to determine where the best outcomes can be delivered for both parties.

By constantly providing training and feedback to brokers, he’s able to help them source new opportunities and build their businesses.

Vear’s style is to be a clear, transparent and honest communicator, helping brokers find solutions to complex problems – and establishing good relationships as a result.

ADRIAN LEE VIC Navigating the constantly changing landscape can make a broker’s job overwhelming, which is why ING commercial BDM Adrian Lee likes to take a holistic view of the broker’s and customer’s requirements.

“I have been in the industry for 33 years, so there isn’t much I haven’t seen,” he says.

“A good BDM simply needs to be reliable and be there to support and assist their broker partners by delivering the required outcome within a reasonable time frame.

Working together towards the same goal will help deliver a positive experience to all parties.”

According to Lee, a successful partnership involves a combination of transparent communication and collaboration. With these elements in place, we can achieve the best possible outcome for the customer.

A good indicator of ING’s success is its high Net Promoter Score. Customers consistently rank the bank number one in terms of ‘most recommended bank’ in Australia.

“This indicates that ING not only offers a true partnership to our brokers through the application process, but this positive experience continues post-settlement with our customer service team.”

Adrian Lee’s top 3 tips for BDMs • Be contactable! It sounds simple, but you need to be able to manage your time and priorities efficiently and effectively • Be able to provide a fast response, even if it is a “no, it doesn’t fit our appetite” • Make yourself available to workshop a deal, whether your broker needs a high-level opinion or you need to get your hands a little dirty and get into the nitty-gritty to assist with a complex structure or an application-servicing position

STUART MOORE NSW

If you call ING residential BDM Stuart Moore on a Monday, he’ll return your call the same day.

That’s something he takes pride in. “I ensure my responses are accurate and appropriate,” he says.

Not only is he serious about keeping up with his broker base, but he’s also active on LinkedIn, with over 700 connections. Through those contacts and his regular reading of industry news, Moore is able to provide an additional service to his brokers, passing on any useful news and tips he reads.

“At ING we put customers at the heart of everything we do, and I carry this approach

throughout all of my interactions with brokers,” he says.

“I am willing to push hard for my brokers to get a good outcome. On occasions I’ve restructured deals to gain approval, using my financial background and experience as well as my confidence in ING policies.”

Moore treats his broker portfolio as if it were his own business. That also comes with an expectation of mutual respect from brokers.

“I am very passionate about the ING brand and look to articulate this to as many brokers as possible and help them and their customers to get ahead.”

www.mpamagazine.com.au

41

FEATURES

TOP BDMS

TOP BDM DIRECTORY ANZ BDM name

Company

Email

Phone number

Location

Area of expertise

Jim Giles

ANZ

jim.giles@anz.com

0419 440 235

Tas

Commercial and asset finance

Steven Menta

ANZ

steven.menta@anz.com

0434 076 488

Vic/Tas

Commercial banking

Scott Nesbit

ANZ

scott.nesbit@anz.com

0411 441 516

WA

Commercial

Renato Sanzo

ANZ

renato.sanzo@anz.com

0401 984 402

SA

Commercial and equipment finance

Tony Maroun

ANZ

tony.maroun@anz.com

0481 007 270

NSW

Peta Clark

ANZ

peta.clark@anz.com

0413 747 555

BDM name

Company

Email

Phone number

Location

Area of expertise

Michael Ponchard

Bankwest

michael.ponchard@bankwest.com.au

0428 865 673

Sydney, NSW

Bankwest product, policy and scenario workshop

Kerri Siedofsky

Bankwest

kerri.siedofsky@bankwest.com.au

0400 622 907

Brisbane, Qld

Adam Biffen

Bankwest

adam.biffen@bankwest.com.au

0476 814 606

Melbourne, Vic

Credit policy

Nathan Jones

Bankwest

nathan.jones@bankwest.com.au

0477 759 826

Perth, WA

Residential lending

Maria-Ceres Parreno

Bankwest

maria-ceres.parreno@bankwest.com.au

0457 820 279

Adelaide, SA

James Tran

Bankwest

james.tran@bankwest.com.au

0472 840 398

Melbourne, Vic

Residential Lending

Carrie Tsang

Bankwest

carrie.tsang@bankwest.com.au

0436 656 103

Canberra, ACT

Strong financial analysis skill, problem-solving and customer relationship management

Jacob Thorne

Bankwest

jacob.thorne@bankwest.com.au

0436 667 843

Melbourne, Vic

Third party sales (broker)

Gary McCarthy

Bankwest

gary.mccarthy@bankwest.com.au

0438 977 064

Perth, WA

Home loans

Jude Scholefield

Bankwest

jude.scholefield@bankwest.com.au

0459 865 170

Sydney, NSW

Problem solving and making tea

BDM name

Company

Email

Phone number

Location

Area of expertise

Craig Meale

Bluestone

craig.meale@bluestone.com.au

0427 629 143

NSW/ACT

Near-prime and specialist lending

Bill Robb

Bluestone

bill.robb@bluestone.com.au

0419 333 993

Qld

Near-prime and specialist lending

Cameron Finnie

Bluestone

cameron.finnie@bluestone.com.au

0427 219 865

WA/SA

Near-prime and specialist lending

Ebony Maxwell

Bluestone

ebony.maxwell@bluestone.com.au

0419 388 285

Vic/Tas

Near-prime and specialist lending

Senior broker manager, asset finance

BANKWEST

BLUESTONE

42

www.mpamagazine.com.au

CHOICE AGGREGATION SERVICES BDM name

Company

Email

Phone number

Location

Area of expertise

Angela D'Angelo

Choice Aggregation Services

angela.dangelo@caservices.net.au

0476 834 254

SA/NT

Partnership manager, lender BDM

Timothy Schneider

Choice Aggregation Services

timothy.schneider@caservices.net.au

0409 094 028

Vic/Tas

Partnership manager/best practice sharing

Company

Email

Location

Area of expertise

Patrick Clarkson

FAST

patrick.clarkson@fastgroup.com.au

0417 982 457

NSW

Partnership manager

Maree Maditianos

FAST

maree.maditianos@fastgroup.com.au

0439 009 439

Vic

Partnership manager

FAST BDM name

Phone number

ING BDM name

Company

Email

Phone number

Location

Area of expertise

Clem Marcocci

ING

clem.marcocci@ing.com.au

0401 145 180

Sydney CBD / Inner West – Sydney

Residential lending

Nicholas Brookes

ING

nicholas.brookes@ing.com.au

0419 157 218

Western Region – Bankstown / Parramatta / Ryde / Liverpool / Penrith / West

Residential lending

Sandy Gourgy

ING

sandy.gourgy@ing.com.au

0405 031 778

Eastern Suburbs / Sutherland Shire / Wollongong / Campbelltown – Macarthur

Residential lending

Shellie Hall

ING

shellie.hall@ing.com.au

0406 664 105

North West Melbourne / Melbourne CBD and Tasmania

Residential lending

Farid Mirkhil

ING

farid.mirkhil@ing.com.au

0406 530 458

East and West Melbourne

Residential lending

Milenko Novakovic

ING

milenko.novakovic@ing.com.au

0404 393 558

South Australia

Residential lending

Peter Bousen

ING

peter.bousen@ing.com.au

0478 404 111

North and Western Brisbane, Toowoomba, Sunshine Coast and Central Qld

Residential lending

Kevin Chaissan

ING

kevin.chaissan@ing.com.au

0476 844 003

Brisbane CBD and Southern Suburbs, Gold Coast and Far North NSW

Residential lending

Ross Fitzgerald

ING

ross.fitzgerald@ing.com.au

0425 297 834

Perth

Residential lending

PLAN AUSTRALIA BDM name

Company

Email

Phone number

Location

Area of expertise

Greg Cooke

PLAN Australia gregory.n.cooke@planaustralia.com.au

0457 531 124

Sydney, NSW

Identifying debt opportunities and establishing functional referral relationships between brokers, financial planners and accountants

Tracey Crevatin

PLAN Australia

0439 061 369

Melbourne, Vic

Residential, commercial, asset finance lending, business development

tracey.crevatin@planaustralia.com.au

www.mpamagazine.com.au

43

FEATURES

SPECIAL EVENT

BROKER BUSINESS EXCHANGE 2018 Hundreds of brokers joined MPA in Sydney for the inaugural Broker Business Exchange. Here’s what came out of it

44

www.mpamagazine.com.au

DESPITE THE gloomy winter weather, hundreds of brokers attended the MPA Broker Business Exchange at the Westin Sydney on 6 June to hear from lenders and other industry leaders on how to improve and grow their businesses.

The main conference featured talks on leadership; award-winning sales and business strategies; time management tips; and advice on structuring a broker’s business for growth. Attendees got to hear from elite brokers, such as Justin Doobov, George Karam, Jason Back, Theo Chambers, Cameron Price, Louisa Sanghera and Liz Wilson, about their successes and challenges, and how they got to where they are today.

At the concurrent stream on diversification, brokers were busy scribbling notes while lenders such as OnDeck, Liberty, Thinktank, Suncorp and Heartland Seniors Finance got into the details of commercial lending, asset and equipment finance, insurance and reverse mortgages.

David Ray Elite Finance Professionals

We’ve been voted Australia’s best mortgage aggregator.

Twice.

Thanks to teamwork.

We’re so proud that, together, our team and our brokers have made Choice the RFI Group’s Australian Lending Awards’ Mortgage Aggregator of the Year for the second year running.

We’d love to work with you as we continue striving to support our brokers to succeed. Speak to us today on 1300 135 389 or visit choiceaggregationservices.com.au/success.

Pennley Pty Ltd (ABN 40 071 979 498) as trustee for the Pennley Unit Trust trading as Choice Aggregation Services. Pennley Pty Ltd is a Credit Representative (No. 392528) of BLSSA Pty Ltd ABN 69 117 651 760, Australian Credit Licence 391237.

FEATURES

SPECIAL EVENT

46

www.mpamagazine.com.au

While most of the conference was dedicated to business strategy sessions, brokers didn’t avoid talking about the royal commission and the ongoing scrutiny of the sector.

Justin Doobov, managing director of Intelligent Finance and the Australian Mortgage Awards 2015 Australian Broker of the Year, said brokers were going to have to work harder than ever as a result.

“We don’t know where the industry is going to go with commissions, regulations, extra paperwork; how much more liability

“The MBF is there to champion the best outcome for the customer, which is centred on freedom of choice and channel” you’re going to have to take on in the next six to 18 months. My philosophy now, more so than ever, is you need to work as hard as you can,” he said.

“It’s going to get a lot tougher, and you potentially may even earn less money for doing it. So now, for the next six months, do yourself, do your family a favour and work hard.”

George Karam, director of BF Money and MPA Top Commercial Broker in 2015 and 2016, said brokers shouldn’t panic.

www.mpamagazine.com.au

47

FEATURES

SPECIAL EVENT “If we band together and advocate and say and do the right things to improve the standards … we’re going to come out of this in a lot better way than what we came in.”

It was during the conference that a collection of elite brokers announced they had formed a group called the Mortgage Broker Forum (MBF) to give the third party channel a stronger and more united voice in shaping the industry’s future.

The group’s agenda is to provide the working broker’s viewpoint to the government and commissioners who are actively considering recommendations that could significantly change the industry.

“The MBF is there to champion the best outcome for the customer, which is centred on freedom of choice and channel. We believe without the broker channel those basic fundamentals will be removed and the consumer will be significantly disadvantaged,” Australian Lending & Investment Centre managing director Jason Back later told MPA.

48

www.mpamagazine.com.au

FEATURES

SPECIAL EVENTS

www.mpamagazine.com.au

49

FEATURES

CAR FINANCE

Ahead of the curve

with their car finance needs, to take a more substantial leap.

“The Liberty Drive car loan is fast, flexible, has a sharp rate and is open to younger borrowers. And it is not only new cars that this deal is applicable to: Liberty also writes loans for private sales and used vehicles.”

Liberty Financial has cut the rate on its Liberty Drive prime car loan, with John Mohnacheff arguing that offering car finance can put brokers ahead of the curve

Getting into gear

IF LIBERTY Financial national sales manager John Mohnacheff were to go looking for a new car any time soon, he says “it would definitely have to have a bit of power under the hood”.

Just like a dream car, he says brokers who integrate car finance into their business have something extra they can use to woo residential borrowers.

borrowers by 1%. This is available until 31 August, and the lender hopes the special rate will give brokers a chance to test drive Liberty’s car loan offering.

“We are serious about helping brokers connect customers with market-leading products, and this special offer gives mortgage brokers another reason to consider writing

“Brokers fundamentally connect customers with finance solutions, so being able to offer more solutions is the natural evolution of the broker” John Mohnacheff, Liberty Financial “Many residential brokers will recognise this scenario – a customer calling to ask if you also do motor lending,” he says. “The best possible experience you can provide in this instance is to be able to say, ‘Yes, of course I can help’.”

Taking a test drive Liberty Financial recently slashed the rate on its Liberty Drive car loan for prime consumer

50

www.mpamagazine.com.au

motor loans and a chance to experience how quick and simple the process is,” Mohnacheff says.

“With Liberty Drive, approvals can be processed within an hour, which helps brokers to help more customers get finance – fast.”

Liberty has offered car finance for more than 15 years, and its special rate could encourage brokers, who have until now been dipping their toes into helping customers

Brokers know that helping borrowers buy a property results in a strong rapport, as personal information is shared and both parties work together towards a mutual goal.

If a customer is happy with the service, and if borrowers know they can return for a car loan, isn’t that a win for both borrower and broker?

“Brokers fundamentally connect customers with finance solutions, so being able to offer more solutions is the natural evolution of the broker,” Mohnacheff says. “Whether that’s a loan for a house, a business or a vehicle, the fundamentals are still the same. Making the switch is easier than many brokers think.”

The right model Car finance differs from traditional mortgage broking in key ways. For example, there are the obvious differences in loan size and asset type, as well as the speed at which a motor finance deal goes from initial lead to approval.

“Residential brokers might be used to having a few days, or even a week, to pull together a deal. Motor lending can happen in a matter of hours, which can take a slight adjustment,” Mohnacheff says.

So how can a broker start putting car finance under the hood of their business?

While it will take some time and effort to get an initial start in the business, it can in the end be “incredibly rewarding”, Mohnacheff says.

“During a home loan application, a broker will ask about the customer’s assets and liabilities. This means brokers already have a detailed understanding of what additional services they may need. Taking the next step in assisting the customer with financing needs in

Sponsored by

these other areas is a natural transition.”

Brokers should also engage with their BDMs to learn as much as they can about motor broking. Brokers who ensure all documentation on the lender’s checklist is included with the application will also find getting started much easier.

“Being diligent with documentation means the whole process is more streamlined for all parties,” Mohnacheff says.

An open road The motor finance sector faces similar challenges to other markets, including technology, regulation and customer demands and expectations. For lenders and brokers, that means being ready to shift gears.

“At Liberty we are known for our diversified solutions, with a long history of out-of-the-box thinking and offering a range of products to both prime and custom borrowers,”

Mohnacheff says. “The goal for us is to remain agile and innovative in adapting to these shifts so we can provide relevant products that support brokers and help more people.”

LIBERTY DRIVE: WHAT’S UNDER THE HOOD? Liberty is offering brokers a 1% discount on its Liberty Drive product until 31 August.

A “quick, hassle-free” prime car loan, it services: • • •

prime consumer borrowers applying for finance up to a maximum of $100,000 younger borrowers aged under 23 years (up to a maximum of $35,000) borrowers repaying within two and seven years (maximum term)

For more information, visit: www.liberty.com.au/car-loans/products/drive.

www.mpamagazine.com.au

51

FEATURES

EDUCATION

Elevating brokers through education Brokers may be provided with basic education when they enter the industry, but their long-term success depends on continuing development.

Suncorp is among the lenders stepping up to help

IT’S FAIRLY straightforward to become a qualified mortgage broker in Australia.

Aside from the mandatory Cert IV and the optional finance diploma, there’s very little else required from individuals.

Unfortunately, it’s a system that can easily leave newcomers under-equipped to deal with the many challenges they face in the market – and that’s why one senior industry figure says ongoing education is essential.

52

www.mpamagazine.com.au

“Having completed those two criteria, I don’t think it would be appropriate for a broker to simply set and forget or think there’s no reason to learn anything else,” says Mark Vilo, head of bank intermediaries at Suncorp.

“We actually find that a lot of new brokers coming into the market don’t necessarily have the skills required to deal with some of the core challenges, like handling objections,

dealing with difficult customers or asking great open questions.”

It was this observation, among others, that pushed Suncorp into action, and earlier this month the lender launched its innovative intermediated learning marketplace.

“We’ve been working closely with our aggregator partners to understand the needs of brokers, and then we’ve leveraged the power of our organisation to source appropriate learning modules,” Vilo says.

One program offered in the marketplace is aimed specifically at brokers who have been in business less than 18 months. It takes participants through a full day of handling objections so they can better understand customer motivations and have meaningful, open conversations.

“We’ve been running them around the country, and the feedback has been fantastic every time,” says Vilo. “Even when I go along to one of these sessions, I always come out having learned something new or having had something reinforced.”

Of course, newcomers aren’t the only ones who can benefit from ongoing professional development – even the most experienced brokers can gain an advantage from continued learning.

“For people who have been in the mortgage

Sponsored by

broking industry for over 10 years, not only has the regulatory landscape and the range of products changed dramatically, but so too has the customer demographic,” Vilo tells MPA. According to research firm Roy Morgan, millennials now dominate the mortgage broker market. In fact, 48.6% of those who have used a broker in the last five years fall into that age bracket.

“Brokers need to be able to break down barriers with this new demographic; they need to be confident in knowing what this age group wants, and they need to be able to remove the intimidation factor from financial services,” Vilo says.

those,” says Vilo. However, it’s hoped another of the lender’s major education initiatives will help address the issue.

Launched last year, Suncorp’s first Synergy event brought around 1,000 brokers together to learn about a range of topics, including artificial intelligence, future workforce trends, and driving growth during periods of rapid change.

“It was about working with our partners and getting them education that’s of value,” says Vilo, who noted that the upcoming Synergy events had evolved based on direct feedback from brokers.

“Brokers told us they wanted to have more interactive conversations with people

“Brokers need to be able to break down barriers with [the millennial] demographic; they need to be confident in knowing what this age group wants” Mark Vilo, Suncorp To help brokers achieve this, Suncorp has begun running educational workshops that are open to broker customers, such as its Auction Advantage event in Sydney.

“We had a panel of experts talk about the process of going to an auction, what it means to have a buyer’s agent, and the tips and traps they should be aware of,” says Vilo.

“Brokers don’t necessarily get involved in the actual auction, but they were adding value by bringing their customers or potential customers to this event, showing them what the industry is doing to help.”

As brokers become more established, their challenges evolve once again, and many come up against the myriad issues faced by small business owners, including recruitment, performance management and employee engagement.

“A lot of brokers don’t necessarily have those prerequisite skills to be able to manage

who understand and can help them in their business, so we’ve decided to create a learning environment for everyone attending.”

“There’ll be something on how to build a great client value proposition, how to get social media working for you even when you’re not, how to combat decision fatigue – it’s just things that we believe will help brokers in a very practical way.”

While the combination of initiatives clearly has the potential to accelerate and strengthen broker careers, Vilo says they’ve also been created with the aim of elevating the industry as a whole.

“We believe there is an opportunity in our market to raise the bar. While the Cert IV and the diploma are useful, there is an opportunity to elevate the industry, and if we can contribute to that in some way, then we’re grateful.”

BIGGEST BROKER CHALLENGES A 2017 survey of MPA readers identified the top 10 challenges brokers were anticipating over the next 12 months.

Rank

Challenge

1

Time management

2

Lead generation and building referral relationships

3

Improving systems and processes

4

Recruiting and managing staff

5

Social media marketing

6

Business diversification

7

Client retention strategies

8

Marketing and branding

9

Sales strategies

10

Succession planning

www.mpamagazine.com.au

53

PEOPLE

CAREER PATH

ON SOLID FOUNDATIONS Even in his first job, Virgin Money’s head of distribution, Christian York, was already reaping rewards

Christian York began his first job at the mortgage processing division of Bankwest, where he was responsible for document preparation, settlements, disbursement of funds, escalations, and the customer/service box. He earned broad recognition for his commitment to both brokers and customers and received numerous state and national customer service awards. Two years later he joined the bank’s broker sales division as a broker support manager.

2004 ENTERS MORTGAGE MARKET

2010 GROWS PLAN In just two years of being the BDM at PLAN Australia and Advantage Professional Services, York grew the organisation’s $800m portfolio to $1.2bn by recruiting high-value companies and assisting existing clients with their growth aspirations.

2015 HANDLES A REGIONAL TEAM As a state manager at Bankwest, York coached a team of BDMs and broker support managers to help them achieve their collective targets and personal goals. He drove strategic direction across multiple Bankwest projects.

“I sat on the leadership team in 2017 when Bankwest ranked fifth in MPA’s Brokers on Banks survey. [Rising] from eighth place, it was our largest single-year improvement.”

2018 JOINS VIRGIN MONEY York left Bankwest in April 2018 to take on the head of distribution role at Virgin Money. He led the national business development team in continuing the rapid growth of the company’s home loan business.

“Throughout my career, I have built extensive experience in mortgage broking. I have worked in credit, lender and aggregator business development and account management” 54

www.mpamagazine.com.au

2008 ZEROES IN ON SERVICE York worked as an account manager at Service Finance, cultivating relationships with existing clients and ensuring customers’ financial position with the business was in order.

2014 RETURNS TO BANKWEST York became a senior BDM at Bankwest, with a clear succession path to a state manager position. Before taking on the senior management role, York was ranked first among 22 BDMs across Australia for 15 consecutive months. He held key relationships with AFG and Advantedge.

2018 EXPANSION TODAY AND BEYOND York and his team are evolving their value proposition for brokers and customers, expanding their national sales and distribution network, growing their customer and broker bases, and managing their customer framework to be the best at delivering good customer outcomes.

19 October • The Star Sydney

Event partner

Award sponsors

Official publications

Organised by

www.australianmortgageawards.com.au

PEOPLE

TELL US WHAT YOU GET UP TO Email otiena.ellwand@keymedia.com

OTHER LIFE

“My work for SMTV has helped me to open my heart more as a person. I beca me more focused, patient, and attentive to details in order to meet SMTV’s high standard”

2017

Year Huynh discovered SMTV

6

Months she’s been a news anchor

24/7

Hours SMTV broadcasts internationally

PROMOTING GREEN LIVING Award-winning broker Misa Huynh moonlights as a news anchor, sharing stories for the good of the planet SMARTMOVE MORTGAGE adviser Misa Huynh is passionate about giving back to the community. As a volunteer news anchor on the Noteworthy News program on SMTV, an international web TV station that promotes positive and constructive news stories, she uses her influence to educate viewers on living and eating green and protecting the planet.

Huynh volunteers at the station on

56

www.mpamagazine.com.au

weekends or after work and is also a video producer for Tips of the Day. “The number one cause of global warming is meat production. Being vegan helps not only in the reduction of global warming but also in the suffering of animals, our planet’s other cohabitants,” she says. “I love to share my own valuable experience of becoming a vegan.”

Working for SMTV has required Huynh

to become even more focused, patient and attentive to details, which also applies to her role as a broker.

“I have to deliver high-quality work every time, which is similar to what I do as a broker,” she says.

“There is no room for errors. Every client, application or scenario is equally important and requires 100% attention and service.”

Here’s a number everybody loves

At Liberty we can explore consolidating customers' credit cards, personal loans, tax debts and more into one simple home loan repayment.

• Up to 95% LVR • Multiple debts considered • Available for credit impaired

Put more customers at ease and help them get back on track with Liberty.

Visit liberty.com.au/broker or call 13 11 33 to connect with your BDM today. ˆApproved applicants only. Lending criteria apply. Other fees and charges are payable. Liberty Financial Pty Ltd ABN 55 077 248 983. Australian Credit Licence 286596.