2,000 broker leaders could exit profession in next few years

Almost 2,000 finance broker firm leaders are approaching retirement age, prompting concerns over the future continuity of client relationships and industry expertise, according to new analysis by MAF Finance Group.

The asset finance brokerage, part of the Begbies Traynor Group, revealed that 1,856 finance broker firms are currently led by individuals aged over 65. Without clear succession strategies, the sector could see a significant loss of experience and client insight in the coming years.

The findings are compounded by a sharp rise in the number of finance firm leaders opting to wind down their businesses entirely. In 2024, there were 839 solvent liquidations in the financial services sector – a 29% increase from 650 in 2023.

Dave Chapman, Managing Director at MAF Finance Group, highlighted the value at risk:
“Asset finance brokers form long-term, close-knit bonds with their clients. They understand client businesses, including the long- and short-term goals of the organisation as well as what is needed to reach those goals.

“With so many leaders nearing retirement and hundreds having wound their operations down in 2024, businesses are at risk of losing this knowledge and guidance if there is not a succession plan in place for that client book.”

Chapman also outlined MAF’s efforts to support brokers approaching retirement, including structured partnerships and fee-sharing arrangements to ensure clients continue receiving the guidance they rely on.

“We are seeking to partner with asset finance brokers taking the next steps to retirement or wanting to wind down,” said Chapman. “We can work with these asset finance brokers on a planned and structured basis, so clients continue to get the broker support they need and the broker enters into a fee sharing arrangement through to retirement and beyond.”