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A recent Broker Daily article discussing the future of BDMs at the major banks sparked some debate and controversy.
The consensus was that the BDM proposition will remain strong for the more complex scenarios. However, the simpler examples that require a quick answer could be taken over by AI if the BDM isn’t supportive.
Now, Broker Essentials’ founder and director, Jason Back, has weighed in on the conversation. As an ex-BDM, he said the critical question is not if their role will change, but how they will adapt to thrive in the new age.
In a recent episode of Finance Specialist, Back said those best positioned to thrive in the AI-powered BDM era are those who have a strong value proposition.
“If I was a BDM now, the question I’d probably be asking myself is what is it about what I do that my clients value? And that’s the thing I’d be doubling down on,” Back explained.
AI does not discriminate. It threatens just about every profession out there. The role of a BDM is not the only one on the chopping block, and like these other industries, BDMs must adapt.
Back noted that the rise of AI in the industry does not signal the death of the BDM. However, it does mean they’re going to have to work harder to connect with brokers and cement their value.
The BDMs who have a strong proposition, who are supporting their brokers, who are there for them to assist with the complex scenarios, are best positioned to remain strong in the face of AI.
Back recognised an opportunity that could come from this debate. BDMs can reclaim what the role really is – a business development manager, not a policy support manager.
“When did we fall so far away from the role being about business development managers? I was a BDM. If my job was just to answer policy questions, then that’s no longer a BDM,” Back said.
“Maybe we’ve got to go back and redefine what the role actually does and why it exists. I would challenge the BDMs out there, if you want to stick around, no different from brokers, they’ve got to be thinking about what’s important to the end user.”
A broker’s perspective
To offer perspective from the other end of the spectrum, Finni Mortgages principal Eva Loisance discussed the future of BDMs in a recent episode of Broker Daily Uncut.
Loisance noted that yes, AI may be able to replace some aspects of the BDM role, but said brokers don’t want to engage with a chatbot for support.
She said she calls her BDM every day to handle complex and time-sensitive deals. This support and connection cannot be replicated by a robot.
This is an example of how BDMs should be cementing their position. Those who aren’t responsive are the first at risk of being replaced by AI.
“If I had to talk to a robot to fix some of the issues, I’d be feeling very uncomfortable for my clients. So, I guess it very much depends on what problem you have. And it’s like every industry, some BDMs are amazing, some BDMs are not so amazing,” Loisance said.
[Related: Are BDMs the next casualty in the major banks’ AI-driven overhaul?]
