Building great BDM teams drives success

BDMs boost growth for banks, brokers

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Global financial services firm Citi is enjoying impressive loan settlement growth in Australia, largely generated by its exceptional team of business development managers

THE MOST successful mortgage lenders boast the most highly skilled and effective business development managers. A great BDM team maintains valuable relationships with mortgage brokers, who drive a steady stream of customers the lender’s way. So, what makes a successful BDM team? Leading global financial services firm Citi is experiencing rapid growth in its Australian mortgage business and says its BDM team is the key differentiator. MPA asked Citi Australia’s head of mortgage distribution, Matt Wood, and James Baldsing, BDM mortgages distribution for Victoria and Tasmania, for their views on the role of BDMs in the industry. Wood says Citi’s BDMs play a crucial role in educating broker partners, particularly on Citi policy and products. “They also assist with navigating the loan application through the system from the start of the purchase process right through to conclusion. “As a niche player, we also have some unique tailored solutions, which can aid in growing the broker’s own business.” Citi looks at what the customer is seeking, how the broker aims to meet those needs, and what's on offer in the marketplace, Wood says. “We then seek to meet those needs within the framework of our business and customer-first model, legal and regulatory obligations, and competitive position.”

Citi is a leading global bank and the world’s largest card issuer and has approximately 200 million customer accounts. It does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate advisory, securities brokerage, transaction services, and wealth management.

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“Through the work the BDM does in establishing a strong broker and BDM relationship, we see repeat business and improved quality and conversion rates”

Matt Wood, Citi Australia

However, he adds, nonprofits have been resilient. “Most of our insureds are not only recovering back to their pre-pandemic state, but are in fact expanding,” he says. Parvathy Sree, vice president of nonprofit underwriting for AmTrust Financial Services, agrees. She says some nonprofits, such as homeless shelters and schools, adapted particularly well to the challenges. “Nonprofits with good management and decent financials were able to survive the last year and are seeing the fruits of their hard work and diligence,” Sree says, but she cautions growing organizations to be diligent with loss control and risk mitigation, emphasizing that while claim counts are down and court cases are in limbo, things could change.

BDMs vital to growing Citi’s business “Through the work the BDM does in establishing a strong broker and BDM relationship, we see repeat business and improved quality and conversion rate," says Wood. “Whether it's the customer or the buyer, it’s the BDM that is the face of our ‘customer first’ model. We seek to provide trust in our business by always working in the interest of the client.” Wood says the BDM model does not lend itself to lip service. “If the customer and BDM have a good experience, it builds trust and consideration for future business, and it's the BDM

What makes an excellent BDM Being customer- and broker-focused, resilient and a great communicator, and having a positive attitude and a versatile skill set – these are the attributes that set great BDMs apart, says Wood. “It’s also important to be aware of the lender’s and competitor’s credit policy, as from a customer perspective this will ensure you are providing the best product to suit their needs, while ensuring a smooth application process. “When the process doesn't go smoothly, the BDM has to be there to step in and work with the business and broker to resolve any issues quickly, and with the least impact on the customer.” Wood says COVID brought about fast-moving change and temporary policies and processes across the finance industry. “BDMs were crucial in assisting brokers navigate through the change. To put it mildly, it’s been a hell of a ride, but we have emerged with enhanced flexibility, better and faster internal processes, and strong BDM-broker relationships.” Personal service Wood says Citi BDMs are in regular contact with their brokers and help guide a broker’s loan application. “The process starts with pre-submission and goes all the way through until settlement, so it really is a partnership between the broker, the BDM and Citi. “We also seek to provide our BDMs with market insights that will assist them in providing value-add information both for the client and broker.”

“In times of uncertainty, it’s best to engage with the BDM to ensure you educate yourself on the product range and obtain the required documents”

James Baldsing, Citi Australia

BDMs benefit brokers BDMs help brokers identify key niches that offer solutions for their customers, says Wood. They also assist in ensuring a broker maintains a high conversion rate with the lender and keeps up to date with lender policies. “No matter who the lender is, there will be circumstances where they will not be able to provide the requested service. It's important to recognise these circumstances early and determine if any exceptions are possible, as this will cause the least delay for the customer and

broker to determine how best to enact the customer’s strategy.” Wood advises brokers to reach out to BDMs early in the process and share “your desired result for your business”. “Support your BDM with quality information and flag any potential issues,” he says. “This will make sure the process runs smoothly.” A Citi BDM’s perspective James Baldsing, Citi’s mortgage distribution BDM for Victoria and Tasmania, says the industry has seen rapid changes to the application process, the interest rate environment, lending requirements from a competitive position, and regulatory changes. “A BDM fully across these changes, as and when they occur, is best placed to provide quality service to a broker and the client,” says Baldsing. He says for brokers the most important aspect of a mortgage application is the initial process of investing the time to get to know and understand their client’s needs.

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“This will then lead to a conversation between the broker and your BDM, whereby your BDM can recommend a suitable transaction and provide a clear pathway forward for the client.” This will flag any possible exceptions or issues early on so BDMs can work to ensure the transaction can be completed in a smooth and timely manner for the client, Baldsing says. “Brokers should engage with BDMs to educate themselves on the product range and ensure they obtain the required documents," he adds. "An incomplete application and documentation can result in further delays for customers.” Baldsing says over the last 12 months there have been numerous compliance and process amendments, system improvements and campaigns. “This is where the BDM’s knowledge of internal products through engagement of internal parties can support, advise and assist brokers. “Our role is to address client needs as a matter of urgency and with promptness. The relationships we seek to build and maintain always require continuous support, therefore we must strive to communicate regularly with clients verbally, via email and, where appropriate, in person.”

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that has to deliver this experience, supported by our processes, products and frameworks.”

Q4 growth, or 3.5 times system, according to APRA

7.5%

new mortgage settlements generated by BDMs through 1,300 broker-introduced applications in Q4 2021

$1bn

rise in Citi’s mortgages balance sheet in Dec 2021 – 10% up on Dec 2020

$246m

Strong growth in Citi’s mortgage business

Wood says COVID brought about fast-moving change and temporary policies and processes across the finance industry. “BDMs were crucial in assisting brokers navigate through the change. To put it mildly, ‘it’s been a hell of a ride’, but we have emerged with enhanced flexibility, better and faster internal processes, and strong BDM-broker relationships.” Personal service Wood says Citi BDMs are in regular contact with their brokers and help guide a broker’s loan application. “The process starts with pre-submission and goes all the way through until settlement, so it really is a partnership between the broker, the BDM and Citi. “We also seek to provide our BDMs with market insights that will assist them in providing value-add information both for the client and broker.”

BDMs benefit brokers BDMs help brokers identify key niches that provide solutions for their customers, says Wood. They also assist in ensuring a broker maintains a high conversion rate with the lender and keeps up to date with lender policies. “No matter who the lender is, there will be circumstances where they will not be able to provide the requested service. It's important to recognise these circumstances early and determine if any exceptions are possible, as this will cause the least delay for the customer and

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