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
Mark Picken, ING
vice-president, speaking at the National Association of Commercial
Finance brokers asset finance seminar in London on 1 March 2011,
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
Nick Simpson, managing
director of Asset Finance Solutions, also saw broker franchises
“We have 29 franchisees – the
benefit is it gives access to some funding lines they wouldn’t
necessarily be able to get. There’s a massive future for
broker-to-broker business if controlled correctly,” Simpson
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Picken agreed, adding
“clandestine” broker-to-broker arrangements should be guarded
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
Large broker groups were also seen as a strong training
ground for the next generation of asset finance