Commercial lending is now the fastest-growing segment of the broking industry, with the number of brokers writing commercial loans jumping 24 per cent year on year, the sharpest uplift in the past 30 years.
Commenting at the 10th annual National Finance Brokers Day conference, Stephen Scahill, Group Executive, Commercial Finance of LMG, told delegates that the acceleration proves diversification is no longer optional for brokers.
“In an industry that has been operating for over 30 years, for the number of brokers writing commercial loans to grow by 24 per cent in a single year is extraordinary,” said Scahill.
“This is real momentum and it shows that customers want more from their brokers, not just a home loan. I firmly believe it is in the customers interests to get this support from their broker who they have a trusted relationship to begin with.”
The MFAA’s latest data shows more than 7,000 brokers are now active in commercial lending, highlighting the scale of change sweeping the industry.
Scahill said the discussion among brokers has shifted from “why diversify” to “how.”
“At LMG we’ve invested in building the full ecosystem brokers need to succeed in diversification,” he said..
“As a broker, you need a team around you, and we’ve built the largest specialist support team in the country.
“You need technology, and MyCRM is the only platform that brings resi, commercial and asset finance together in one place.
“You need guidance, so we’ve built AI policy smarts into Brokers Bible. And you need education, which is why we’ve created dedicated commercial and asset finance training programs.
“When all of that comes together, diversification stops being a theory and becomes something brokers can actually put into practice.”
The opportunity for brokers is significant. Residential brokers now write around 77 per cent of the market, while commercial sits at around half that.
“There’s no reason commercial market share shouldn’t eventually mirror residential,” Scahill said.
“The same clients who trust you with their home loan are making business finance decisions. Often they just don’t know their broker can help.”
Scahill emphasised that diversification doesn’t mean tackling every complex deal.
“Some commercial transactions are actually quicker and easier than resi. It’s about building capability step by step and partnering with trusted specialists for the more complex transactions. The customer message should always be: ‘We can find you a solution.’”
For brokers concerned they’re already stretched, Scahill said diversification is often the enabler for growth.
“Additional revenue streams can fund support staff or specialists, allowing brokers to scale. With AI doubling in capability every six months, the time savings we’re about to unlock will make diversification even more viable.
“There’s no quieter period coming. Waiting risks lost income and lost customers. Diversification is about future-proofing your business and keeping your clients where they belong, with you.”
