The challenges faced with the transition from Banker to Broker

The transition from “Banker to Broker” is clearly a hot topic within our industry and has been for a long time and we have all seen it being a headline topic that every major aggregator leans into when running regular recruitment drives and webinars.

Having bankers join the broking ranks is critical to both the growth and overall quality of the broking industry in general, but it does present a unique set of challenges that are often overlooked other than it just being the natural next step in a career in finance that promises greater autonomy and potential income, and these need to be navigated thoughtfully:

1. Period of time without income: The transition often entails a period without a stable income, posing a financial challenge that requires careful planning and management.
2. Isolation: Shifting from a robust team environment with a strong brand to working independently can lead to feelings of isolation, loneliness and frustration. This lack of daily interaction and support can be a tough adjustment.
3. Customers: Everyone has friends and family that will support them with the transition and leaning on these personal relationships is a great place to start, but is this enough of a referral network to run a feasible finance brokerage into the future?
4. Limited lender relationships and networks: A lot of the time bankers only have a network within the lender they have represented previously, and building a new network of lender relationships across multiple distribution channels is crucial. Many new brokers coming from from banks and lenders often find themselves starting from scratch, which can delay their progress and success.
5. Limited understanding of the Broker Industry: The broker industry has its own set of nuances that can be unfamiliar to those coming from a banking background, even if Third-Party was the channel they operated within previously. This knowledge gap can lead to inefficiencies and missteps, creating delays in strategy execution and poor customer experiences.
6. Limited understanding of lenders' appetites and requirements: Former bankers or BDMs often have deep knowledge of their previous institution's policies and processes, however understanding the diverse requirements and appetites of various lenders in the broker space at scale is a different ball game all together, leading to potential time inefficiencies, again impacting the end customer in a transaction.
7. No administrative support: The lack of administrative support can be overwhelming. Tasks that were previously handled by a support team or associate within a lending institution must now be managed independently, adding to the workload, stress and work/life balance.

It's essential for those making this transition to seek out the right resources, mentorship, and support networks to help navigate these challenges effectively. The journey can be incredibly rewarding with the right approach, level of support, and of course mindset, transforming potential hurdles into stepping stones for a successful career in finance broking.

Fortunately, Podium Money has a bespoke purpose-built partnership solution created specifically for commercial bankers and lending BDMs who have pondered the idea of getting into finance broking but have held themselves back when reflecting on the above headwinds.

If you’re interested in learning more, shoot me a DM and let’s have confidential discussion on how we may be able to really help you with transitioning out of the world of banking/lending and into a successful commercial finance broker.