The role of a BDM has significantly evolved in the mortgage industry since the onset of the financial crisis.
While BDMs have always been there to provide support to intermediaries, traditionally, the focus has tended to be more on discussing products and rates, and responding to intermediaries’ queries.
However, since the onset of the financial crisis, the focus has changed to a much more proactive approach, with BDMs providing greater support to intermediaries in terms of information and education.
With market estimates placing the number of intermediaries in the mortgage market at around 10,000, down from 30,000 in 2007, and with a significant number of lenders withdrawing from the intermediary market, the number of BDMs has in turn been impacted.
Yet, while BDMs may be much scarcer in number across the industry, arguably the value they can add to intermediaries has increased.
In a difficult market which has seen massive contraction over the past few years, not only in terms of lending volume, but also in the number of players in the sector, the knowledge and understanding that a BDM offers can be the key to an intermediary securing the right mortgage for their client’s needs.
In the new world in which we find ourselves, BDMs need to add commercial value to both the lender and intermediary. This has resulted in what many view as much more businesslike relationships between BDMs and intermediaries, with both committed to the same goal of placing quality business.
For BDMs, this means a much greater emphasis on supporting intermediaries in line with the specific needs of their business. For instance, by providing education and information on lending policies and procedures, helping intermediaries navigate lender systems more efficiently and being accessible to discuss cases, taking ownership and escalating problems where necessary.
From a lender’s perspective, service is a key differentiator in today’s smaller market; lenders have to distinguish themselves on more than just products.
Abbey for Intermediaries has worked hard over the past six months to improve the service we offer to intermediaries and we are committed to building on the improvements we have made to make it easier for intermediaries to place their business with us.
What is clear is that, as the first point of contact for intermediaries, BDMs can really differentiate a lender’s offering and should be at the core of a strong service proposition. By gaining a real understanding of the intermediary’s business, a BDM can not only offer support but also help deliver solutions and provide training and development opportunities, all of which can ultimately help the intermediary write better quality business.
Another change we have seen in recent years has been the greater role played by telephone BDMs in both a proactive and reactive capacity in the market.
Telephone BDMs complement the comprehensive face-to-face support offered by field-based BDMs by offering instant accessibility and knowledge at the end of a telephone, improving scale and reach. Our sales force is made up roughly of two-thirds telephone BDMs and one-third BDMs, enabling us to offer support to intermediaries across the whole of the market.
Earlier this year, we asked 1000 intermediaries in what ways BDMs can add most value to their business. Unsurprisingly, the following factors were among those highlighted as key – case assistance/management, product/criteria/system knowledge, and general support.
To get the most benefit from a BDM relationship, it’s essential that intermediaries discuss with their BDM how they can best offer you the support you need to meet the needs of your clients. This allows intermediaries to agree with BDMs what’s important to them and helps the BDM better understand how they can add value to your business.
A key part of this conversation should be agreeing a timescale to respond to queries and issues. For example, Abbey for Intermediaries has introduced a commitment that BDMs will return calls within a maximum of four business hours, so intermediaries know their query is being taken care of.
Turning to next year, the outlook for the market looks like being much the same, with the economy remaining choppy. Meanwhile, consumer confidence remains low, the impact of the Comprehensive Spending Review is still to be felt and the housing market continues to suffer from a chronic lack of first-time buyers.
With estimated gross lending in 2011 of around £140bn, it’s clear that conditions will remain challenging for the mortgage market as a whole.
However, in such conditions, BDMs are ideally placed to offer intermediaries the support they need to add real value to their clients.
By being accessible and professional, guiding intermediaries through difficult cases and offering information and education on lending policy and procedures, BDMs can add real commercial value to both intermediaries and lenders, and ultimately help support brokers on behalf of the lender.
