Following the closure of many bank branches, out-of-work bank managers have been looking to other areas of finance for employment. Many of them have moved to the alternative and bridging finance sectors, reports BridgingAndCommercial.co.uk this month.
A report by the Federation of Small Businesses estimates that 1,500 towns that once had banks no longer have branches. While businesses can shift to internet banking, many miss the face-to-face meeting with bank managers, particularly when it comes to loans.
When bank branches close, often the staff can be employed elsewhere within the banking company, but there are inevitable staff layoffs. Some bank managers do not want to move to different jobs within the baking group, especially if it involves moving home.
Many experienced bank managers are now working in the alternative finance sector. Some alternative lenders want to develop personal relationships with borrowers and ex-bank managers can help them with this.
Businesses that apply for bridging finance through a mortgage broker can talk to an advisor face-to-face or on the telephone. Though there have been developments in online technology, it is expected that there will continue to be a need to develop human relationships between borrowers and brokers, since most small to medium businesses would rather talk to a live human being rather than an AI system or robot.
You may not get to speak with an ex-bank manager, but a good broker will have the financial expertise to advise you on all forms of alternative and bridging lending.