Government incentive a ‘game-changer’ for brokers
The broking sector is the industry that’s best-placed to capitalise on the Federal Government’s extension of its nationwide trainee hiring incentive, according to Loan Market.
The extension of the Boosting Apprenticeship Commencement (BAC) scheme to September 30 will enable brokers to sustainably build their staff numbers and capacities to service the current surge in customer enquiries and strengthen their businesses for the long-term.
Loan Market’s Executive Director Andrea McNaughton said the extension was a ‘game-changer’ for brokers, coming at a time of unprecedented growth: the MFAA recently confirmed a record December share of broker-originated home loans (59.4%) while APRA reported third-party channel new bank loans written over the same quarter were 28% higher than the comparative period.
“Brokers have never been better-positioned to expand and upskill their teams than right now,” said Mrs McNaughton.
“Brokers are standouts to benefit from the Federal Government’s extension of the program.
“Having the financial support to grow their business with more well-trained support staff is exactly what brokers need to service more clients, referrers and deliver more outcomes for customers amidst Best Interests Duty (BID) requirements and the demand of the record-low interest rate environment.”
Mrs McNaughton said Loan Market was expanding its existing dedicated support-staff hiring, onboarding and training program – including inductions on its compliance and customer-experience focused The Loan Market Way processes – in readiness for an influx of administrative hires in the coming six months. Loan Market has onboarded more than 150 new Customer Service Managers (CSMs) since launching a 12 month recruitment drive in October.
Loan Market helps identify the pain points in brokers’ businesses so the aggregator’s in-house recruitment team can recruit CSMs with the skills that match business needs.
CSMs then undergo training in The Loan Market Way; a six-week lending support blueprint program; four weeks of peer-to-peer mentoring; and multi-program tips for efficiency.
CSMs are trained and inducted to ensure they have a strong understanding of Best Interests Duty (BID) requirements and Kaizen productivity tools, adding value to broker activities from their very first file. Through Loan Market’s online CSM Community network, CSMs also benefit from peer-to-peer learning opportunities, including guidance from highly-experienced support specialists.
The BAC grant underwrites up to $7,000 per quarter over 12 months in gross wages for new apprentices, trainees and graduates studying a Certificate II or higher.
Loan Market has recognised the grant as an opportunity for brokers to grow their businesses with quality support staff and has packaged-up the details of the subsidy program for brokers to consider.
The aggregator has also negotiated a group discount for Loan Market brokers with RTOs.
Mrs McNaughton said the subsidy was a ‘clear investment’ for brokers wanting to grow their businesses through new quality support staff.
Mrs McNaughton said the incentive was an opportunity for staff to undertake a Certificate IV or III in Business Administration, providing ongoing benefits to the brokers’ business.