Building a resilient and efficient broker-lender channel

Representatives from the UK asset finance industry – brokers, lenders, technology providers and trade associations – attended a participative workshop to explore and address important topics for all brokers and lenders who depend on the effective functioning of the broker-lender channel.

Split into three topic streams, the participants at the Asset Finance Unconference discussed the following areas:

Building a resilient and efficient broker lending channel: The value of creating a standard review process or broker processes recently suggested by the trade associations
Technology: Strategic implications of creating a hub through which lenders and brokers communicate
Compliance: The review of the Appointed Representative Regime and clarity on Consumer Duty and Consumer Credit Review

The key takeaways from the Asset Finance Unconference included:

A common oversight review process: There is a combined spirit and will within the asset finance industry to find a way forward to align broker oversight documents and processes, creating an efficient and standardised audit review. The asset finance industry must keep communications open and continue to work together to streamline the audit review process and find a single entity – FLA, NACFB or an independent third party – to orchestrate the whole process.

A single digital platform: Technology is an enabler for the broker-lender channel, delivering business efficiency and simplified compliance, leading to better customer outcomes. In future the broker-lender channel seems likely to embed real-time compliance into digital processes to ensure the sector delivers the right outcomes for all stakeholders. The adoption of a co-operative technology platform provides a potential opportunity to establish an efficient ecosystem which embeds a range of value-adds which can significantly improve the broker-lender channel and discourage activities like multi-propping.

Compliance and regulatory overload: Recent regulation overload, with new Consumer Duty rules and a review of the Appointed Representative Regime, has resulted in an increased burden for asset finance brokers, with more time being spent on onerous oversight reviews and form-filling rather than on their actual business and serving the customer. The industry hopes that the Consumer Credit Act review will bring clarity and a greater harmonisation of regulatory rules for the asset finance broker-lender channel.

Summary reports from the asset finance unconference’s broker-lender workshops are available to download at:

Kindly supported by