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This page is for intermediary use only. If you're not an intermediary, please
return to our customer website
By Lee Rhodes, Commercial Director, Asset Finance, Aldermore
As a lender that works closely with brokers, we know the value you bring to the UK economy. Brokers are integral to facilitating financial inclusion, finding the right lender for your customer, or helping businesses transition to net zero.
Despite that, many SMEs aren’t aware of this. In fact, our research* found that just 4% of SMEs said they’d go through a broker for their finance. Key to growing the market will be developing awareness in SME of the role the broker plays and how an SME can access a broker’s services.
In the current economic and regulatory landscape, it’s vital for brokers to think about how they can future proof their business, and we’re here to help with some pointers.
The winds of change are definitely blowing in the financial services industry’s direction and have been for some time.
This has also led to the need for enhanced oversight, be it from lenders or supported by trade bodies, to continue to deliver good customer outcomes and help with consistent standards. This should be embraced in the spirit it has been created. Tools, like the Finance & Leasing Association Broker Accreditation service could be one method for supporting this.
As a broker, keeping abreast of these changes, analysing how your brokerage can be agile to embrace them and adapting processes, will be essential to future proofing your business.
Whether it’s to improve processes or provide better customer outcomes, technology can have many benefits. Our research* told us that the main areas SMEs plan to invest in over the next 12 months (29% on average each) include an online presence, new equipment, and new technology.
With the increased scrutiny around oversight, technology can help demonstrate regulatory compliance more efficiently with consistent processes and comprehensive databases that support us in understanding the outcomes for customers.
Technology also helps brokers offer a better service and perhaps provides a competitive advantage. This could be in the form of connectivity between broker and lender systems to minimise data entry duplication, utilising e-sign documentation to provide faster completions, or exploring how AI or robotics can allow your staff to focus on value-added tasks, rather than the monotonous ones.
Being open to new technologies, listening to what customers want or expect in their finance journey, and keeping up to speed with the latest developments can help brokers future proof their business in many areas.
Training and education for staff is a no-brainer, but can often be something that is overlooked or deprioritised.
Supporting your colleagues with the tools to be at their best and reduce manual repetitive tasks, means they can offer a first-class service that leads to good customer outcomes, regulatory compliance, and a sustainable revenue stream for your business.
Investing in talent is vital for the future of your business. Our research* shows that, concerningly, two-thirds (64%) of SME senior decision makers have not considered their succession plans.
Investing in your business, whether it’s processes, systems, and people is vital for the long-term success of your brokerage and the wider channel.
The Aldermore team has been working very closely with finance brokers since 2009 and it remains a core distribution channel.
To find out more, contact us.
For intermediary use only
*Research conducted by Opinium on behalf of Aldermore between 24 October – 08 November 2023 of 1,000 SME Senior Decision Makers.