BDMs: Merely employed with a licence to sell?

BDMs: Merely employed with a licence to sell?




In a previous article, it was debated whether BDMs are constantly battling with Underwriters in the war of profit vs risk.

In a previous article, it was debated whether BDM’s are constantly battling with underwriters with the war of risk vs sales. In this debate, Bob Sturges of Omni Capital made an interesting point, that BDMs must justify their worth via sales, otherwise they could be seen as “an expensive luxury.”

Ashley Ilsen of Regentsmead noted that there has to be more to a BDM than just selling. “...Often when a BDM is paying a visit, the more they come across as ‘selling’, the more it can switch someone off.”
 
“The real skill is selling to someone without them realise they are being sold to,” he added.
 
When asked if being sales-orientated was the main purpose of a BDM, Bob Sturges agreed: “In our line of work, I would say unequivocally that it is. We can discuss the merits of 'relationship building' and the such, but the fundamental reason for employing a BDM is for them to sell successfully.”
 
“While it's important that their selling tactics and strategies are aligned in accord with the underlying culture and best interests of the business - and appropriately supervised - there is nothing wrong with BDMs taking a distinctly sales-orientated approach to their work. Otherwise, what is their purpose?”
 
“If one accepts that BDMs have a fundamental duty to sell then their performance against set targets becomes an important measure of their success or failure,” he added.

However, John Davies of Just Cash Flow PLC does not think that a BDM’s sole purpose is to make sales, adding that none of JCF's BDM’s have sales targets. “A successful BDM has to be an all rounder,” he declared.  
 
“They have to be problem solvers, and, increasingly, need to fully understand the industry they are working in,”

Bob Sturges, noted: “However, to judge-and-reward purely on sales achieved is a crude short-term measure that can create serious longer-term problems.

Duncan Kreeger of West One Loans agreed that sales targets should form part, but not all, of a BDM’s appraisal.“If a BDM is not hitting targets, it could be a problem with the sales process rather than just individual error,”

He continued:  “Part of a BDM’s job description is obviously to bring in new business, but volumes aren’t their only key performance indicator.” Duncan added that quality is just as important as quantity, as well as BDM’s having an ambassadorial role in the market.
 
Jackie Ferguson of London bridge PLC, Ashley Ilsen and John Davies all agree that acting as the firm's ambassador, plays a big part of being a BDM.

Jackie Ferguson explained there is a requirement to establish and further brand identity. “…a more competitive market brand identity and USP are key to proper business development,”

“The development of a balanced portfolio of loans is key to the BDM’s role and that does not just mean sales i.e. quantity.  From a London Bridge perspective it means looking at the business as a whole with the remit to establish a solid book of loans of varying sizes and types and in different geographical locations.” she added.

Matthew Fleming-Duffy CeMAP CeFA, of Cherry Mortgage & Finance LTD told B&C that the role of a BDM has evolved significantly over the last five-ten years. Where originally the role centered around products and relationships, now, he believes BDMs have morphed into ‘mobile underwriters’ due to brokers connecting with lenders through technology.

Some agreed that BDMs had to acquire the talents of the Underwriter to thrive. Mark Jones of Omega Commercial Solutions Limited said that you could be the best BDM in the country, but if you cannot deliver a holistic service with a thorough knowledge of the market and understanding of credit risk, “…you won’t be able to truly deliver the service your clients will expect.”
 
In the opinion of Paul Wertheim from Mint Bridging, however, job titles don’t matter in the grand scheme of things: “What is most important is the relationship between lender and broker, and good relationships are founded on trust. Regardless of the job title, the broker needs to have complete confidence that the person they are dealing with is able to fully understand the nuances of a deal and how they are dealt with.”

 

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