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As the financial landscape becomes increasingly competitive, brokers face a range of new challenges and also opportunities. The return of proprietary channels through fintech lending platforms, and major bank online offerings has intensified competition, while a surge in the number of new brokers over the past few years adds further pressure. We are seeing more experienced bankers leaving the majors to become brokers, which brings valuable expertise into the industry, and while this shift is positive overall, it also presents a strategic challenge for existing brokers as they navigate how to differentiate and market their value proposition effectively.
At the same time, brokers must stay ahead of an ever-evolving regulatory environment, with new compliance and risk management requirements placing added demands on brokers, aggregators and industry bodies. The key to staying competitive is adaptability, brokers need to stay informed and agile as regulations change and new market dynamics emerge.
In todays environment, technology also presents both a challenge and an opportunity. Embracing digital tools such as CRM systems (aggregator platforms), data analytics, and digital communication tools can streamline operations, improve efficiency, and give brokers a competitive edge. However, it’s not only about the technology it’s how brokers manage and support their client relationships that truly sets them apart and maintains the longevity of their business and brand. Technology can optimise processes, but the personal touch and ongoing support and relationship brokers provide are irreplaceable in building long-term trust and success.
As the number of brokers continues to grow, standing out in the marketplace will be more important than ever. Those who focus on delivering exceptional value, strengthening client relationships, and leveraging the right technologies will be best positioned for sustained success in an increasingly crowded and complex industry.
George Obeid
Chief third-party officer at leading SME lender Judo Bank
As the financial landscape becomes more competitive, brokers should rethink how they position themselves and their services. Brokers are no longer just intermediaries between lenders and borrowers they are seen as trusted advisors who help clients navigate a complex and often overwhelming financial world. This role places brokers in a prime position to add value beyond traditional home loans.
Diversifying a broker’s business through education, up-skilling, referral partnerships, or collaborating with experienced mentors can significantly accelerate and strengthen a broker’s offering. Expanding into areas such as equipment finance, business lending and advisory services, insurance, and a variety of lending products, brokers can create multiple revenue streams and position themselves as a comprehensive, one-stop financial resource for clients. This approach not only deepens client relationships but also fosters loyalty, increasing the likelihood of repeat business and referrals.
Moreover, partnering with banks like Judo and their highly skilled and empowered banker workforce can support brokers diversify and engage in more meaningful, strategic conversations with clients, moving beyond mere transactions and positioning themselves as essential partners in their client’s long-term success.
In an increasingly competitive market, differentiation is essential. Brokers who proactively adapt to their clients’ evolving needs and offer a customised suite of services will be best equipped to stand out and thrive. This revision enhances clarity, flow, and emphasis on the benefits of diversification and differentiation, all while keeping the focus on the long-term success of brokers.
SMEs represent the backbone of the economy, but they continue to face significant challenges, particularly in the area of labour. Many businesses struggle to source and retain skilled workers, and this issue is expected to persist into the foreseeable future. However, these challenges also present a significant opportunity for innovation and growth within the SME space.
As SMEs deal with ongoing labour shortages, they are increasingly incentivized to rethink their business models. In response, many are investing in new technologies, capital equipment, and streamlined processes to enhance productivity and reduce reliance on human labour. This push for innovation presents brokers with the opportunity to help SMEs make informed financial decisions that support these investments whether through equipment finance, working capital solutions, or business advisory services.
Additionally, the rising costs of labour and the challenges in sourcing workers may drive SMEs to rethink their hiring strategies, potentially leading to more automation, digital tools, and redefined workflows. This shift will result in businesses becoming more efficient, which in turn could open new markets and revenue streams, creating additional opportunities for brokers to advise on financial strategies that foster growth.
SMEs represent the backbone of the economy, but they continue to face significant challenges, particularly in the area of labour.
- Obeid says.
SMEs represent the backbone of the economy, but they continue to face significant challenges, particularly in the area of labour. Many businesses struggle to source and retain skilled workers, and this issue is expected to persist into the foreseeable future. However, these challenges also present a significant opportunity for innovation and growth within the SME space.
SMEs represent the backbone of the economy, but they continue to face significant challenges, particularly in the area of labour.
- Obeid says.
As SMEs deal with ongoing labour shortages, they are increasingly incentivized to rethink their business models. In response, many are investing in new technologies, capital equipment, and streamlined processes to enhance productivity and reduce reliance on human labour. This push for innovation presents brokers with the opportunity to help SMEs make informed financial decisions that support these investments whether through equipment finance, working capital solutions, or business advisory services.
Additionally, the rising costs of labour and the challenges in sourcing workers may drive SMEs to rethink their hiring strategies, potentially leading to more automation, digital tools, and redefined workflows. This shift will result in businesses becoming more efficient, which in turn could open new markets and revenue streams, creating additional opportunities for brokers to advise on financial strategies that foster growth.
SMEs will likely continue to face difficulty with sourcing workers. The silver lining is that it will incentivise SME innovation in the economy as well.
- Obeid says.
The SME market is dynamic and complex, and brokers play a vital role in helping these businesses navigate the challenges and seize opportunities. As trusted advisors, brokers should develop a deep understanding of the unique challenges faced by SME clients whether its cash flow management, access to capital, or business growth strategies.
AI, data analytics, and digital tools are increasingly becoming integral to how brokers operate, providing them with real-time insights and helping streamline processes. However, the true value of a broker comes from their ability to understand where the market is heading, recognize emerging trends, and provide actionable advice to clients. This combination of industry expertise and technological support will be key for brokers looking to differentiate themselves in the SME sector.
The ability to recognise and respond to the evolving needs of SMEs such as understanding and navigating macro and micro economic factors, cashflow cycles or technological disruption will be crucial. Brokers who can tap into these emerging trends and position themselves as knowledgeable and proactive partners will be well-placed to capture growth in this market.
In the fast-paced world of SMEs, time is often the scarcest resource. Business owners are consumed with the day-to-day operations of their companies, leaving little room to fully assess their financial needs or explore new growth opportunities. This is where brokers come in and offer the expertise, time, and strategic oversight that many SMEs lack.
Brokers don't need to have a deep understanding of every single facet of their client’s business, but they do need to grasp the broader landscape and provide the support that allows SMEs to thrive. This could mean advising on financing options for new purchases e.g. property, equipment etc, helping them understand tax implications, or identifying opportunities for expansion or acquisition. The key is to offer insightful, customised advice that aligns with the clients’ goals.
As the SME landscape continues to evolve, brokers must stay attuned to the specific needs of their clients, especially when it comes to managing risks, securing capital, and navigating regulatory changes. Building and maintaining strong relationships is critical in this space, as these long-term partnerships lead to repeat business and referrals.
Judo Bank understands the challenges brokers face and offers the tools and resources necessary to stay ahead of the curve. Our judgement-based lending approach means brokers and SME’s will have access to bankers with an empowerment framework to make common-sense decisions. Our experienced team apply a “character first” approach, and support most industries, including agriculture, real estate & professional services, hospitality, manufacturing, retail and more.
One of the key resources Judo also provide to brokers is our weekly 15-minute economic snapshot update with our chief economist, Warren Hogan. This update gives brokers timely insights into macroeconomic trends, allowing them to be better prepared when they meet with clients and understand the broader economic forces that might impact their businesses.
In addition to this, Judo Bank also provides comprehensive research and data-driven insights into the SME market. Our research reports give brokers a clear picture of where the market is headed, helping them make informed recommendations to their clients. This ongoing support ensures that brokers are always armed with the latest information and trends, enhancing their credibility, and positioning them as trusted experts in their field.
By equipping brokers with critical information, Judo Bank helps them build stronger relationships with our mutual clients and offer tailored solutions that meet the evolving needs of the SME market.
You can listen to the full interview with George Orbeid, chief third party officer at leading SME lender Judo Bank, here:
George Obeid
Chief third-party officer at leading SME lender Judo Bank
Judo Bank
As Australia’s only challenger bank purpose-built for small and medium businesses, Judo Bank exist to help secure the lending you need and the service you deserve.
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