Super-brokers are expected to emerge as a
power bloc within asset finance, but not for at least 7 to 12
years.
Factors such as cost benefits and the age
profile of an industry drawing closer to retirement are likely to
drive the growth of bigger groups and franchises.
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Mark Picken, ING Lease vice president,
speaking at the National Association of Commercial Finance brokers
asset finance seminar in London on Tuesday (1 March 20111), said:
“The days of the super broker is still 7 to 12 years away. It will
happen when smaller brokers retire. Someone will have to soak up
the contacts book of those smaller, niche players who are writing
their own books. Brokers will pick up books off one man bands.”
Nick Simpson, managing director of
Asset Finance Solutions, also saw broker franchises expanding. “We
have 29 franchisees – the benefit is that it gives them access to
some funding lines they wouldn’t necessarily be able to get by
themselves. There’s a massive future for broker-to-broker business
if controlled correctly,” Simpson said.
Picken agreed, adding that “clandestine”
broker-to-broker arrangements should be guarded against.
Mike Francis, Investec head of asset finance,
argued that better systems would make the broker market more
attractive. “Costs in asset finance broking are higher than for,
say, a mortgage book. Technology could help to streamline
operations. There will be bigger brokers.”
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By GlobalDataLarge broker groups were also seen as a strong
training ground for the next generation of asset finance
introducers.
