Business outcomes - A good education

Most Australian employers – around 81 per cent, according to the Australian Bureau of Statistics (ABS) – provide some form of training for their employees.

The finance and insurance industry has a particularly strong emphasis on professional training and development – especially structured learning, such as seminars and workshops.

Employers in this sector have reported the second highest increase in structured training year-on-year, accounting for nearly half of all industries.

Most professions have some sort of continuing professional development regime as a pre-requisite to practice.

Accountants for example need to complete 80 hours of structured CPD activity every two years to attain their accreditation with their national industry body.

Likewise, it is mandatory for financial planners to complete CPD and industry bodies such as the Financial Planning Association of Australia have set their own minimum CPD standards.

Doctors and lawyers also have mandatory CPD obligations.

THE NEW WAVE OF BROKER EDUCATION

With the introduction of the National Consumer Credit Protection Act, brokers who don’t already hold one will now need to attain a Certificate IV in the financial services industry.

They will also need to complete a minimum of 20 hours CPD as a condition of holding a financial services licence.

In the wake of regulatory change in the broking industry, the MFAA has thrown its support behind advanced professional development for brokers, with plans to implement a ‘Professional Credit Adviser’ model. The strategy is aimed at ensuring all MFAA members are qualified as an ‘Associate Credit Adviser’, ‘Credit Adviser’, or ‘Certified Credit Adviser’.

Under the MFAA’s new professional education framework, all MFAA members will be required to obtain as a minimum a Certificate IV in the financial services industry well before the ASIC deadline of 30 June 2014.

While the new national credit regulation will impose mandatory CPD as a licence condition, the MFAA plans to take the 20-hour requirement one step further – lifting members’ minimum CPD obligations by 10 points to 30 hours a year so they may qualify for re-accreditation.

MFAA president Phil Naylor says the strategy will help “raise the bar” in the mortgage broking profession.

Brokers are already jumping on board, looking to meet the regulatory standards before licensing comes into play.

Byron Gray, marketing manager Intellitrain, which runs broker educational courses, says there has been a dramatic uptick in the number of brokers looking to invest in themselves.

“We’ve seen nearly 200 brokers just in Sydney alone who are undertaking a Diploma of Financial Planning,” he says.

Large brokerage groups like Mortgage Choice have long embraced education – forcing brokers to meet certain standards before attaining a franchisee licence.

Mortgage Choice requires its new franchisees to undergo a 12 month ‘Rookie’ program – designed to build its franchisees’ understanding of the market and develop their product knowledge.

The brokerage also provides mentoring for new franchisees during their first year and offers broker professional development training in product knowledge, conversion rates, sales leads, support teams, referral marketing and administration.

There’s even a loans review program that provides brokers with feedback on their loan submissions.

EASING BROKER RESISTANCE

But for many in the industry, taking time away from writing loans to undergo further study is seen as a hindrance – both personally and financially.

This is especially the case if the broker has previously undertaken study as a banker or finance professional.

Tandem Consulting director Peter Neimandt says brokers who embrace learning will develop an optimistic attitude towards it and will be better able to weather future change and industry evolution.

“With a positive attitude towards learning, brokers can open their minds up to new possibilities,” he says.

“You can’t be successful tomorrow using yesterday’s tools today.”

He says factoring personal development into a business routine is not about apportioning cost based on revenue but is about analysing one’s business needs on a regular basis.

“The question a broker should ask is: ‘what do I need to do to capture more of the market?’”

Another way to look at it, Mr Neimandt says, is to “think of the least that you can do to have the biggest impact for your business.”

“Going to an overseas convention might be a great experience, but the cost may outweigh the benefit,” he says.

“On the other hand, there may be no cost to a broker undertaking sales coaching, for example, because the business will be instantly rewarded by the results.”

SHAPE UP OPTIONS

For brokers who shudder at the prospect of having to bring their qualifications up to scratch, Intellitrain’s Mr Gray says there are a number of options.

According to Mr Gray, any broker who has more than two years’ experience in finance and/or mortgage broking may be eligible for Recognition of Prior Learning (or RPL).

RPL is a process where a broker can demonstrate they are already operating at or above the Certificate IV level. It requires the broker to submit evidence in support, such as resumes and references.

Non-face-to-face teaching methods like on-line learning or distance education also offer greater flexibility for busy full-time brokers.

And in terms of costs, Mr Gray says some discounts are available. For example, he says brokers may be eligible for a $4,000 government grant for each employee they enrol in the Certificate IV course, including administrative staff.

But discounts aside, brokers can still be looking at forking out hundreds of dollars.

The question is – is the outcome ever worth the investment?

STAGING A DEVELOPMENT ROLLOUT

WHO Finance’s Michelle Coleman thinks so.

Ms Coleman says regular professional education and training has given her business a competitive edge.

In an era of national credit regulation and the evolving mortgage industry, she says brokers who don’t train and re-skill risk being left behind. WHO Finance uses a mix of seminars, mentoring and business coaching at various stages of a broker’s development to achieve the best results.

“Undertaking continuing professional development and training is very important in this industry,” Ms Coleman says.

“As a broker, you need to keep improving yourself.”

Most importantly, Ms Coleman says broker training and education underpins the professional standard that brokers want to present to their clients.

“It delivers that message of being a ‘professional’ to the consumer,” she says.

“Factoring personal development into a business routine is not about apportioning cost based on revenue: IT’s about analysing one’s business needs on a regular basis”

ONLINE SEMINARS (WEBINARS)

Time-poor brokers may find that webinars or online seminars are the perfect training solution

Intellitrain’s marketing manager Byron Gray says webinars are one of the company’s most popular professional development initiatives.

The training company runs a number of webinar courses for the mortgage broking industry which cover a wide range of topics including debt structuring, communication skills, the art of persuasion and understanding customers’ needs.

“Many brokers opt to get their Continuing Professional Development (CPD) points up through the company’s webinar program,” Mr Gray says.

As well as having the advantage of being accessible online from any location, webinars are also a cost-effective training solution. Unlike external seminars, webinars mean no transport or parking costs for brokers.

“At about $20 per month, it’s [webinars] a no-brainer,” says Mr Gray.