From banker to broker – what you need to know

If you’re a banker thinking of a career change, or looking for new challenges (and the possibility of greater financial rewards), a switch to mortgage broking may well be for you.

Why should I switch?

As a banker, you may have been working with a limited range of loan products,but as a broker, you could have the opportunity to work with a range of credit providers who offer different solutions for customers looking to borrower money. Your job becomes about researching and tailoring credit solutions rather than selling particular products.

You will no longer be under pressure to cross-sell your bank’s other products, such as insurance, and will be free to help customers find the best solutions for these products, too.

You’ll switch focus. Your job will be about assessing your client’s credit needs and finding the right solutions for them, rather than assessing a client’s suitability for your bank’s products – you become a problem-solver, not a gatekeeper. This customer focus may provide you with a greater sense of job satisfaction.

You may also move into a position where your income is driven by how hard you work rather than your position on a corporate ladder – the more customers you can secure loans for, the more you may earn.

What skills do I need to become a broker?

As a banker, you already have many of the skills a mortgage broker needs. By now you’ll be experienced in assessing a customer’s creditworthiness by checking their net worth, credit rating, work history and income, as well as in assessing the collateral that may be put up against a loan, and other factors that affect credit.

You will have skills in managing customer relationships, and you may already have a network of contacts in the finance industry that you can draw on.

Think about it…

So what are the challenges of moving from banking to broking? As a broker you’ll need strong marketing skills. You won’t have the power of a big bank behind you: how are potential customers going to find you? How are your social media skills?

You’re likely to find yourself competing not just with banks and other mortgage brokers, but with new online services that allow people to broker their own mortgages. Your people skills and your ability to value-add are going to be especially important in this environment.

Just as importantly, how are you going to find your customers? Have you built up a database of potential customers and do you have a strong network that could provide leads and referrals?

Support from an aggregator

When you branch out on your own, you won’t necessarily be alone. An aggregator can provide considerable support, including access to a panel of lenders, access to client relationship management software and other technology, and general business support.

If you’re looking to move from banking into broking, contact the expert team at Choice today.