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BDMs are important but some struggling, say intermediaries – BDRC

by: Tony Wornell
  • 25/11/2014
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BDMs are important but some struggling, say intermediaries – BDRC
An overwhelming 96% of the mortgage intermediaries we surveyed in September 2014 said it was ‘important' for lenders to maintain business development manager (BDM)networks.

Almost half (48%) said it was ‘extremely important’. The importance attached to BDM forces has edged up since our previous study in September 2013 which followed the introduction of the MMR rules in April 2014.

Their impression or ‘image’ of the typical BDM, however, has grown more negative over the last year. We collected ratings from about a dozen different attributes of BDMs for an array of lenders. The scores for individual lenders vary enormously, but by taking the average score across all the lenders in the study we can paint a picture of how intermediaries see the average BDM.

The strongest ratings are around competence: 35% rate BDMs as knowledgeable and nearly as many say they help them understand lending criteria at 32%. However, both these ratings are well down on 2013 the challenge of MMR. It has been said that a key new role of BDMs is helping intermediaries to understand the MMR requirements, but they seem to be struggling with this – the average rating for BDM forces on ‘helps me prepare for MMR’ was just 14%.

The second strongest area for BDMs was around communications and accessibility: ‘easy to contact’ (22%), ‘good at returning calls and emails’ (27%) and ‘good at giving advance notice of product launches and withdrawals’ (27%).

The rating on product launches and withdrawals has held up since 2013 but the other ratings are substantially down: intermediaries have found it harder to get hold of BDMs in the more dynamic market conditions of 2014.

The human angle achieves similar ratings: ‘easy to get on with’ (28%) has fallen sharply suggesting the more challenging market conditions in 2014 may have sometimes damaged the interpersonal side of BDM/intermediary relationships.

The lowest ratings are around problem solving, which some lenders may not regard part of the BDM’s brief. The research showed 24% ‘help solve problems’ and just 18% ‘help place difficult cases’. These scores have declined only slightly since 2013.

Overall, then, the picture that emerges is one of rising demand for BDM support in the post-MMR world but with more strained delivery. As the MMR beds in and the market quietens we may see a better balance between supply and demand, assuming that lenders maintain their BDM forces.

Tony Wornell is a director at BDRC Continental

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