A knowledgeable BDM is an invaluable resource for brokers and customers during prosperous times, but perhaps even more so when the economy faces challenges, as they empathise with the difficulties some customers are facing due to the Reserve Bank’s rapid interest rate hikes.
“I think it’s been very tough this year, particularly the rate rises over the last 12 to 18 months – they’re having an effect now with fixed rates rolling over to rates that are around three times what they were when they were fixed. This is making a difference to cash flow,” said Richard Galvin, of Advantedge Financial Services.
Read more: Meeting challenges with experience and skill
The signals on where markets are headed are somewhat mixed, but this only underscores the significant value of a skilled BDM.
“I think there’s a lot of uncertainty still out there,” said Kelly Tietjen BDM for NAB broker distribution Queensland. “Personally, I think that brokers will continue to play such an important role in navigating the customers through this uncertain time.”
She believes that given housing is a basic need, the residential mortgage market is unlikely to see much more downside. Refinancing remains a prominent trend.
“Advantedge and NAB are very focused on the refinance market, helping brokers give their customers a better deal… [people] might have taken a specialist loan a couple of years ago, when rates were low and it was an easy way to go forward – but it could be at a much higher rate these days,” Galvin said.
At NAB, part of a BDM’s job is to ensure that brokers consider NAB when it’s most critical.
“I think it’s still a bit of a challenge where some customers are paying a higher rate, and they are potentially stuck with their current lender,” Tietjen said. “My plan to help with that is just to make sure that the brokers are aware of how good we are on pricing through our pricing tool.”
From the business standpoint, brokers have a clear understanding of what’s at stake for SMEs.
“Small businesses are the engine room of the Australian economy, and we want to make sure it’s vibrant, interesting, exciting, and appealing,” said Chatay Tekin BDM for NAB small business.
Tekin views regulatory changes as a potential hurdle for businesses, highlighting the importance of BDMs staying informed about industry trends and changes in order to customise solutions for a diverse array of SMEs.
“Being proactive, adaptable and persistent in your efforts will position you well to succeed as a commercial BDM,” he said.
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