Home' MFAA Prosper : Mortgage and Finance Brief 19 Contents 26 Mortgage & Finance brief
essential, she says that it's important to
"You need to see people's eyes
to learn about things like handling
objections and applying what you've
learnt," she says. "It's a very interactive
business and you're dealing with people
and their dreams -- it's not just about the
technical aspects of a mortgage."
Hair says the right training will
depend on whether the mortgage and
finance broker is self-employed or
part of a broker group, and that to be
an entrepreneur in the industry requires
ongoing professional development and
knowledge of your own strengths
"Brokers need business management
and marketing skills, as well as an
awareness of what's happening in the
economy. The content of education
needs to be broad so that brokers can
self-select the right training for their
Hermens agrees that training should
focus on helping brokers think more
strategically and develop 'blue ocean'
thinking -- that is, thinking that will
lead to new processes and products that
will disrupt the existing market.
"John Symonds was the original blue
ocean thinker in the mortgage and
finance broking sector," Her mens says.
"We need more people like that who
will keep the industry motivated."
RESPONSIBILITY FOR TRAINING
As to who is responsible
for training in the
mortgage and finance
broking sector, Edge says
that it depends on the
development need. The first step is to
identify what gap in skills, knowledge
or behaviours is restricting an individual
mortgage and finance broker from
working at an optimal level, and only
then is it possible to ask questions
about who is responsible for providing
Brokers have options to access
this training: from the MFAA, from
their aggregator/broker group and
from lenders. The MFAA's role is to
understand the development needs of
members and to provide a range of
options that are relevant, practical and at
the right price point.
"Brokers have to be responsible for
their own development," Edge insists.
"Over the years, there has been a move
away from training being pushed to
the broker. Development is all about
'learning on demand' -- having access
to the right training at the right time
and for the right price."
Ultimately, Edge adds, it's individuals
who are responsible for their education. "It's
part of being a member of a profession."
But it's also important that education
is delivered cost-effectively and "that's
part of the role of the aggregator and
industry bodies," Hair says.
As to who should foot the bill,
Hair also says there's no such thing
as a free lunch.
"If the aggregator is not directly
charging brokers for training, they will be
indirectly charging for it -- the user pays,"
he says. "Brokers run their own businesses
and it's in their interests to maintain their
CPD. Brokers need to treat CPD as a
Kaplan's Knight advocates the benefits
of lifelong learning and maintains a
high regard for the CPD system. "The
market, regulations and legislation
are constantly changing. It is critical
that employers and their staff remain
compliant and maintain an up to date
understanding of trends, occurences and
issues within their industry, or run the
risk of falling behind," he warns.
THE IMPACT OF EDUCATION
The changing nature
of mortgage and
finance broking means
that education is
essential in order to
stay ahead of the game.
The industry is experiencing a
convergence in financial ser vices, with
some being increasingly sold in bundles.
The Institute of Strategic Management's
Hermens says that mortgage and finance
brokers who persist in focusing on home
loans will find their market share eaten
up by other ser vice providers who are
prepared to bundle.
"Mortgage and finance brokers need
to understand the contribution margin
model. They can easily increase the
number of clients they see, but to get
more value out of clients they need to
sell more ser vices to them, which will
help them more quickly reach break-even
point and profitability," Her mens insists.
He is also an advocate of the MFAA and
believes the mortgage and finance broking
industry has been well served by the
industry body regarding education.
"Often industries will wait until there is
government and regulatory inter vention
before introducing education standards,"
he says. "The MFAA has taken a strong
stance, which is often an unpopular way
to go, but training and development helps
build a strong reputation for the industry.
"Over the past 20 years, I have seen
a shift in public perceptions of brokers
because they have been willing to
Eldridge has the last word when he says
that there is a portion of the mortgage and
finance broking community that is now
faced with a choice -- to keep doing what
they have been doing for the past 10 to 20
years and resist change, or smarten up.
"Watch profits and revenue get eaten up
or accept that times have changed. If you
want to keep pace -- or even lead the pack
-- you need to commit to constant self-
The content of education
needs to be so broad that
brokers can self-select the
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