In October 2023 at the Mortgage Business Expo in London, two of the seminars I attended strayed from the main theme to talk about the key role of business development managers (BDMs).
Totally unscripted, the participants and delegates found themselves talking in depth about BDMs — some glowingly, some with obvious frustration. Whatever the underlying sentiment, the topic was evidently up for discussion — even if not planned.
The general consensus was that, during challenging times — such as we find ourselves in right now —brokers need support from BDMs more than ever. However, the standard and level of support proffered have by no means been consistent across the industry.
Just how important are BDMs to brokers, and what specific support do they require right now?
There is a good pipeline of BDMs, especially in the specialist arena
Shaw Financial Services mortgage broker Lewis Shaw believes the most fundamental aspect is being able to speak to a BDM as soon as a problem occurs, or for clarity on a quirky bit of criteria that isn’t on the website.
“The biggest bugbear most brokers have is being unable to speak to a BDM because the lender doesn’t provide one or they don’t answer their phone,” he says.
The Mortgage Mum senior mortgage broker Sonya Matharu agrees that BDMs are a vital resource yet says too often there is radio silence when their services are urgently required.
“They know the intricacies of what’s involved with each lender and can provide instant clarification on any questions we [brokers] may have — which in the current market [where lenders are reducing rates and reapplying] is so incredibly valuable.”
She agrees with Shaw that reliability is crucial too.
To be honest, we don’t need motivators; we need communicators
“As we know, the world of mortgages can be pretty fast moving, especially at the moment, and having this information readily available can help us not only to provide a more streamlined service to our clients but to prepare them in knowing which aspects of an application may be impacted.
“But that happens only if BDMs are available.… So I’d say the biggest support BDMs can offer — outside their expertise — is their availability.”
From the lenders’ viewpoint, Leeds Building Society head of intermediary partnerships James O’Reilly reveals that, in the current economic climate, brokers are increasingly turning to the company’s team of BDMs for support.
“Our intermediary teams — based in the field, on the phones and on webchat — are focused on giving timely communication of any changes, sharing product knowledge and industry trends, and helping to solve complex cases.”
Success in building and managing relationships with clients and stakeholders is often a key factor that can lead BDMs to more senior roles
He adds: “Building a collaborative relationship between brokers and BDMs helps us all to work efficiently and to more easily navigate the complexities of the role.”
It takes time
But how are these trusted relationships between brokers and BDMs built up? As Shaw stresses, it doesn’t happen overnight and it can’t be rushed.
“As Warren Buffet says, ‘You can’t have a baby in a month by getting nine women pregnant.’ Some things just take time.
“What helps is consistency. Lenders can have a habit of changing teams around and reallocating BDMs to different areas, which can be disruptive and both brokers and BDMs are often left thinking, ‘Well, what was the point of that?’ Change for change’s sake isn’t a good idea.”
BDMs know the intricacies of what’s involved with each lender and can provide instant clarification on any questions we may have
Keystone Property Finance head of sales Moises Cruickshank (a former BDM at the company) believes the BDM role has developed over time, with different demands and expectations now evident.
“To build strong relationships with brokers you need to demonstrate a thorough knowledge of the market and be able to provide valuable consultancy. The BDM-broker relationship has evolved over the years and become less transactional than it was.”
He adds: “Honesty is also key to building trust with brokers; they need to be able to rely on you consistently. Being responsive and providing quick decisions are another important part of the relationship.”
Cruickshank stresses that, internally, it’s important for BDMs to be in tune with their under-writers. Adopting an underwriting mindset can help brokers to present their case in the best way for a quick and positive decision.
“I find sitting with our underwriters is vital to having a clear sense of the way in which they view complex applicants and securities.”
Necessary evolution
O’Reilly believes BDMs have had to evolve to meet changing industry dynamics and technological advancements.
“Today’s BDMs need to be tech savvy: understanding digital tools, customer relationship management systems and online platforms,” he says.
The biggest bugbear most brokers have is being unable to speak to a BDM because the lender doesn’t provide one or they don’t answer their phone
“Data analysis has also become more crucial. BDMs need to interpret data to identify market trends, assess the performance of products and make data-driven recommendations.”
In addition, O’Reilly emphasises that the regulatory environment in the mortgage industry has also become more complex, most recently with the introduction of the Consumer Duty.
“BDMs must stay updated on changing regulations and guide brokers accordingly. The ability to communicate effectively and build strong relationships is now more crucial than ever.
“The mortgage industry has seen many market changes and BDMs must be adaptable and proactive. Educating brokers about new offerings, processes and industry trends is an important part of the role.”
Cruickshank agrees that the role is different these days.
We need BDMs who are open to providing collaborative support so that, when we have a case we need to place, we can work together
“BDMs are less reactive and rather than responding to instruction they are on the front foot, shaping cases. This change is due to the complex residential and buy-to-let markets that now exist.”
Matharu does not think the essential skills of a BDM have changed radically.
“Still the best thing a BDM can provide to brokers is reliability — and to execute that well they need two things: an ability to problem solve, and knowledge of products and processes.”
The product knowledge is obvious, she explains, but the process knowledge is what really elevates the experience from a broker’s perspective. For example, when changing the products for a lower rate post-offer, each lender operates differently.
“For some it’s a simple amendment, but for others their process can involve a risk to the client’s application.
Having the ability to turn a ‘No’ into a ‘Yes’ is an important skill
“BDMs being forthcoming with these insights is so important. Yes, it’s our job as brokers to ask this question and find the information, but BDMs are uniquely placed to share vital insights we might not have otherwise discovered.”
Matharu adds that this is especially helpful to newer brokers.
“It also helps in highlighting any knowledge gaps that BDMs themselves might have — helping to level up their own expertise and continue the cycle of helping one another.”
Shaw is very specific about what or who constitutes a good BDM and it relates to his earlier point about person-to-person contact.
“A good BDM looks like Jordan Corsellis from Halifax, Louise Archer at Accord, Mark Wheatley for Coventry BS and Mitchell Jackson at Skipton BS.
“They all have one thing in common: you can actually speak to them — and if they’re in a meeting they ring you back once they’re out. Communication is what brokers want, and great BDMs do it well.”
Seeing the bigger picture
Being able to see the bigger picture is something Cruickshank is keen to highlight.
“A good BDM in today’s market possesses in-depth know-ledge of not only their own products but those from the market as a whole. This is something Keystone encourages and helps BDMs to achieve with training and development.”
A good BDM looks like Jordan Corsellis from Halifax, Louise Archer at Accord, Mark Wheatley for Coventry BS and Mitchell Jackson at Skipton BS
He explains that there have been plenty of occasions where his team has recommended products and solutions to brokers who have hit a roadblock searching for a lender to accept their case.
“Having the ability to turn a ‘No’ into a ‘Yes’ is another important skill, perhaps by presenting a different limited company structure to shape the case differently,” adds Cruickshank.
The idea that BDMs are there to provide motivation is given short shrift by Matharu.
“To be honest, we don’t need motivators; we need communicators. As brokers, we work with our clients to find the most suitable product for them. This means we’re not going to place a client with a particular lender just because we’ve been motivated to do so.
BDMs are less reactive these days. Rather than responding to instruction, they are on the front foot, shaping cases
“We need BDMs who understand that and are open to providing collaborative support so that, when we have a case we need to place, we can work together to see if it’s one they can help with.”
The future
Before the credit crunch, BDMs from lenders often had a reputation as product pushers. But a great deal has changed since then, with BDMs increasingly viewed as educators rather than sales people.
The Financial Conduct Authority’s Mortgage Market Review of 2014 has had a lot to do with this. The stipulation that borrowers should have greater certainty about whether they could afford their mortgage, both when applying and in the event of future rate rises, moved the goalposts significantly, with any BDMs following a hard-sell approach effectively stymied.
I’d say the biggest support BDMs can offer — outside their expertise — is their availability
Back in 2014 Mortgage Strategy asked the question: would the local BDM soon be a thing of the past? Would lenders increasingly invest in telephony and virtual BDMs?
Undoubtedly the investment in tech by lenders has taken place, but some may have focused on the virtual or remote at the expense of the physical BDM. Rather than tech being used alongside experienced BDMs, tech has predominated.
Costs may have been cut in the short term but, just as borrowers need a personal touch during challenging times, so do brokers. Lenders whose BDMs demonstrate transparency and who provide essential, tailored support exactly when it is needed are unlikely to go out of fashion.
Good-quality pipeline
Of course, the ongoing need for BDMs is one thing but the supply of good practitioners is another.
BDMs need to interpret data to identify market trends, assess the performance of products and make data-driven recommendations
In what is undoubtedly a more complex market these days, are there enough people of the right calibre coming through to fill these roles?
Cruickshank is in no doubt.
“Yes, there is a good pipeline of BDMs, especially in the specialist arena. We are seeing more BDMs getting to grips with this area of the market and undertaking additional studies such as the Certified Practitioner in Specialist Finance — which I am undertaking myself!”
In terms of developing new talent, O’Reilly believes it is important for businesses to invest in and nurture the next generation of BDMs, ensuring a continuous supply of skilled advisers.
He also maintains there is plenty of incentive to embrace the BDM role.
Good BDMs have one thing in common: you can actually speak to them
“BDMs have financial expertise, technological insight and a deep understanding of the intermediary and the customer, which puts them in a great position to rise through the ranks.
“Success in building and managing relationships with clients and stakeholders is often a key factor that can lead BDMs to more senior roles.”
One would hope that, as these senior roles are taken up, the key function of the BDM will remain in focus.
This article featured in the December 2023/January 2024 edition of MS.
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