Back to school

Yet, particularly in broking, the two don’t have to be mutually exclusive. Experienced brokers can increase their value proposition and further their diversification strategies by undertaking more education.  

For industry newcomers, education can act as a starting point and help brokers establish themselves.

It can also help to bridge the knowledge gap that exists between themselves and their more experienced counterparts.

Individual broker attributes obviously contribute to a broker’s success as much as education or experience, but with the MFAA’s 30 June diploma deadline rapidly approaching, The Adviser decided to look at how education can help brokers and their business.

DIVERSIFICATION & DIFFERENTIATION
Relevance is key, says Mark Norman, AFG’s national training manager.

“Brokers are limited only by where they see their core business requirements and the relevance of particular courses to their scope of work,” he tells The Adviser.

Indeed the spectrum is so diverse that wHere Group’s Todd Hunter says his company now generates more than 50 per cent of its revenue through its property division.

Mr Hunter is a licensed mortgage broker, a licensed real estate agent and has a Diploma in Financial Planning.

“Education has allowed us to offer property investing through our business and generate a second income stream,” he says.

Diversification through education has therefore drastically increased Mr Hunter’s bottom line.

“It’s a nice feeling because our mortgage business is also growing each year,” says Mr Hunter.

In this sense, education enables brokers to differentiate themselves, “as long as they follow through with their diversification plans”.

Education and diversification can also help brokers evolve and remain on top of their game.

Jeremy Zabat, director of Link Finance Group, has various qualifications – including a Diploma of Financial Services (Financial Planning, and Finance/Mortgage Broking), and a Bachelor of Commerce.

He tells The Adviser that brokers who don’t consistently evolve by updating their education will find themselves falling behind.

“One integral way of ensuring you are on top of your game and to differentiate your business is through education, whether it be directly in mortgage broking or additional qualifications in order to advise on additional services such as financial planning and personal risk insurance.”

Education can enable traditional residential mortgage brokers to write self-managed super fund loans, commercial loans and asset finance, or to write risk insurance.

CUSTOMERS & CREDIBILITY
In addition to helping expand a broker’s business, education can help with attracting customers and increase perceptions of credibility.

Even though many experienced brokers are well equipped to handle borrowers’ needs, education can help with customer connections, according to LoanKit’s CEO Simon Dehne.

“Brokers who haven’t done further education are equally up to the task, but I think engaging in education sends a very clear message to the customers out there that we’ve invested in ourselves to ensure you get the best possible advice or experience or service,” he says.

Mr Dehne adds that education may help some borrowers trust brokers’ advice.

Mr Zabat agrees.

“My qualifications have had a significant impact on the business,” he says. “It has provided my business more credibility, differentiation and professionalism. My customers are more confident [in me], and trust in the services that I provide.

“It gives them reassurance that all my qualifications are directly related to this industry and gives them confidence that the advice I provide them is derived from real facts, situations and solutions.”

EDUCATION INFLATION
With various options available - and debate continuing about the relevance and necessity of further education – brokers could be forgiven for not knowing what course best fits their needs.

Yet, now may be a good time to start looking at your options. Mr Dehne believes the industry is currently experiencing “education inflation”.

“We used to have a certificate that was the minimum requirement, the MFAA are now requiring their brokers have a diploma level qualification, and I suspect that will continue to rise in time,” he says.

According to Mr Dehne, most LoanKit brokers have the Certificate IV in Mortgage Broking. He has also seen an increase in the number of brokers completing the Diploma of Financial Services (Financial Planning).

“Brokers are looking to get a more holistic grounding.”

For brokers wanting to further their education at a university level, Mr Dehne recommends anything focused on business, marketing and economics.

The education experience will further brokers theoretical knowledge and can enhance their ability to learn quickly.

“Education is a learning experience that provides guidance on what we need to know theoretically,” says AFG’s Mr Norman. “In many situations around compliance, we have to first know what is required, before we can put it into action.”

AFG currently requires its brokers to have a Certificate IV in Finance and Mortgage Broking or a Certificate IV in Financial Services, but encourages brokers to look into their options.

To further illustrate the benefits that education can offer new brokers, Mr Norman recommends a quote by Pete Seeger.

“Education is when you read the fine print – experience is what you get when you don’t.”

EXPERIENCE VS EDUCATION
The industry need not be divided into those with experience and those with education, yet new brokers and seasoned brokers may require different things.

“I think new brokers should be made to do the extra qualifications, so they get a good feel for the industry, but for those in the industry full time for over five years, their experience speaks volumes, especially those brokers who write good volumes each month,” says wHere Group’s Todd Hunter.

Indeed, Mr Zabat sees the two categories not as divisive, but as complementary.

“I believe both are equally important,” he says. “Education provides a solid foundation on the understanding of key facets of the role and the industry.

“Experience is dealing with real problems, situations and solutions. The greater the experience you have as a broker, the more competent you are in providing your customers with various lending options to meet their needs and wants.”

Experience gives brokers the opportunity to learn on the job. Indeed, Mr Norman cites Mark Twain in explaining the benefits that only experience can bring: “A man who carries a cat by the tail learns something he can learn in no other way.”

Yet the best qualities in brokers are gained through a combination of experience and education, according to Mr Zabat.

These include, but are not limited to strong industry experience and knowledge, the ability to create strong client rapport, the capacity to review lender policies and product knowledge, speed of delivery and turnaround times and effective communication skills.

Mr Dehne agrees – but thinks that in most cases, experience provides the invaluable difference.

“I think, personally, experience is the most important,” he says. “I think you can have all the qualifications in the world, but if you don’t have the experience of being able to manage yourself and assist the customer, and have that knowledge about how the system works and how to deal with lenders, and customers and suppliers – then a qualification is nothing.

“[Yet] a qualification gives you a really good foundation to build on.”

Mr Norman agrees, and believes that it comes down to how a broker uses their education.

“Knowledge is a valuable commodity in being a professional broker,” he says. “Knowing what to do and why we are doing something is imperative in any industry.”

“It’s the integration of appropriate knowledge and skills though, that make a broker exceptional.”

BACK TO School
Will a diploma make for a better broker? The Adviser examines the impact further education could have on the industry
EDUCATION VERSUS experience, and which path produces better workers, is an ongoing quandary in business.
Yet, particularly in broking, the two don’t have to be mutually exclusive. Experienced brokers can increase their value proposition and further their diversification strategies by undertaking more education.  
For industry newcomers, education can act as a starting point and help brokers establish themselves.
It can also help to bridge the knowledge gap that exists between themselves and their more experienced counterparts.
Individual broker attributes obviously contribute to a broker’s success as much as education or experience, but with the MFAA’s 30 June diploma deadline rapidly approaching, The Adviser decided to look at how education can help brokers and their business.
DIVERSIFICATION & DIFFERENTIATION
Relevance is key, says Mark Norman, AFG’s national training manager.
“Brokers are limited only by where they see their core business requirements and the relevance of particular courses to their scope of work,” he tells The Adviser.
Indeed the spectrum is so diverse that wHere Group’s Todd Hunter says his company now generates more than 50 per cent of its revenue through its property division.
Mr Hunter is a licensed mortgage broker, a licensed real estate agent and has a Diploma in Financial Planning.
“Education has allowed us to offer property investing through our business and generate a second income stream,” he says.
Diversification through education has therefore drastically increased Mr Hunter’s bottom line.
“It’s a nice feeling because our mortgage business is also growing each year,” says Mr Hunter.
In this sense, education enables brokers to differentiate themselves, “as long as they follow through with their diversification plans”.
Education and diversification can also help brokers evolve and remain on top of their game.
Jeremy Zabat, director of Link Finance Group, has various qualifications – including a Diploma of Financial Services (Financial Planning, and Finance/Mortgage Broking), and a Bachelor of Commerce.
He tells The Adviser that brokers who don’t consistently evolve by updating their education will find themselves falling behind.
“One integral way of ensuring you are on top of your game and to differentiate your business is through education, whether it be directly in mortgage broking or additional qualifications in order to advise on additional services such as financial planning and personal risk insurance.”
Education can enable traditional residential mortgage brokers to write self-managed super fund loans, commercial loans and asset finance, or to write risk insurance.

CUSTOMERS & CREDIBILITY
In addition to helping expand a broker’s business, education can help with attracting customers and increase perceptions of credibility.
Even though many experienced brokers are well equipped to handle borrowers’ needs, education can help with customer connections, according to LoanKit’s CEO Simon Dehne.
“Brokers who haven’t done further education are equally up to the task, but I think engaging in education sends a very clear message to the customers out there that we’ve invested in ourselves to ensure you get the best possible advice or experience or service,” he says.
Mr Dehne adds that education may help some borrowers trust brokers’ advice.
Mr Zabat agrees.
“My qualifications have had a significant impact on the business,” he says. “It has provided my business more credibility, differentiation and professionalism. My customers are more confident [in me], and trust in the services that I provide.
“It gives them reassurance that all my qualifications are directly related to this industry and gives them confidence that the advice I provide them is derived from real facts, situations and solutions.”
EDUCATION INFLATION
With various options available - and debate continuing about the relevance and necessity of further education – brokers could be forgiven for not knowing what course best fits their needs.
Yet, now may be a good time to start looking at your options. Mr Dehne believes the industry is currently experiencing “education inflation”.
“We used to have a certificate that was the minimum requirement, the MFAA are now requiring their brokers have a diploma level qualification, and I suspect that will continue to rise in time,” he says.
According to Mr Dehne, most LoanKit brokers have the Certificate IV in Mortgage Broking. He has also seen an increase in the number of brokers completing the Diploma of Financial Services (Financial Planning).
“Brokers are looking to get a more holistic grounding.”
For brokers wanting to further their education at a university level, Mr Dehne recommends anything focused on business, marketing and economics.
The education experience will further brokers theoretical knowledge and can enhance their ability to learn quickly.
“Education is a learning experience that provides guidance on what we need to know theoretically,” says AFG’s Mr Norman. “In many situations around compliance, we have to first know what is required, before we can put it into action.”
AFG currently requires its brokers to have a Certificate IV in Finance and Mortgage Broking or a Certificate IV in Financial Services, but encourages brokers to look into their options.
To further illustrate the benefits that education can offer new brokers, Mr Norman recommends a quote by Pete Seeger.
“Education is when you read the fine print – experience is what you get when you don’t.”

EXPERIENCE VS EDUCATION
The industry need not be divided into those with experience and those with education, yet new brokers and seasoned brokers may require different things.
“I think new brokers should be made to do the extra qualifications, so they get a good feel for the industry, but for those in the industry full time for over five years, their experience speaks volumes, especially those brokers who write good volumes each month,” says wHere Group’s Todd Hunter.
Indeed, Mr Zabat sees the two categories not as divisive, but as complementary.
“I believe both are equally important,” he says. “Education provides a solid foundation on the understanding of key facets of the role and the industry.
“Experience is dealing with real problems, situations and solutions. The greater the experience you have as a broker, the more competent you are in providing your customers with various lending options to meet their needs and wants.”
Experience gives brokers the opportunity to learn on the job. Indeed, Mr Norman cites Mark Twain in explaining the benefits that only experience can bring: “A man who carries a cat by the tail learns something he can learn in no other way.”
Yet the best qualities in brokers are gained through a combination of experience and education, according to Mr Zabat.
These include, but are not limited to strong industry experience and knowledge, the ability to create strong client rapport, the capacity to review lender policies and product knowledge, speed of delivery and turnaround times and effective communication skills.
Mr Dehne agrees – but thinks that in most cases, experience provides the invaluable difference.
“I think, personally, experience is the most important,” he says. “I think you can have all the qualifications in the world, but if you don’t have the experience of being able to manage yourself and assist the customer, and have that knowledge about how the system works and how to deal with lenders, and customers and suppliers – then a qualification is nothing.
“[Yet] a qualification gives you a really good foundation to build on.”
Mr Norman agrees, and believes that it comes down to how a broker uses their education.
“Knowledge is a valuable commodity in being a professional broker,” he says. “Knowing what to do and why we are doing something is imperative in any industry.”
“It’s the integration of appropriate knowledge and skills though, that make a broker exceptional.”