The significant proportion of new brokers who are failing to reach success in the industry is troubling, says the Mortgage and Finance Association of Australia (
MFAA).
Speaking on
an industry roundtable hosted by Alphabroker Mentoring on 18 August, MFAA head of marketing, communications and sponsorship Stephen Hale said that the number of brokers coming into the industry from outside of banking and finance was on the increase.
“What disturbs us as an association is that the industry average of success for new to industry brokers is only 50%,” he said.
“At the MFAA, our success rate is higher at 72% because we do invest heavily and recommend support in mentoring as well as workshops for anyone who is new-to-industry and that has been very successful for us.
“Unfortunately, not everybody is built to be a broker, so that is a challenge for us.”
While the industry was attracting 500 to 600 new members every six months, Hale said that this would plateau over the coming five years.
“Industry data is indicating that whilst broker numbers are growing at a healthy pace in terms of numbers, the market is not growing with them in terms of the dollars available for brokers to access. That tends, economically, to suggest that some people are going to get out of the market.”
The industry would see a transitional trend of more people leaving the industry due to unwanted changes in processes or technology, he said, with these individuals being replaced by new-to-industry brokers.
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