AFG to process commissions within six hours
By
Kevin Eddy
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11/08/2010 5:57:00 AM
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9
comments
AFG has invested in a new IT platform that will help it pay commissions three times faster.
The aggregator's $1m purchase of Oracle's Exadata technology will allow it to process commission payments in less than six hours – as opposed to the 19 hours it took before.
The purchase also improves performance speed by three times for brokers using the web, and AFG reckons some processes are now six to eight times faster. AFG says it also significantly reduces the risk of system outage, and provides a comprehensive sales reporting tool for larger member groups via a new business intelligence system. Brokers will also see performance improvement in the product qualification area, particularly when there are a lot of products returned.
"Performance is key for the future," says AFG director Malcolm Watkins. "Testing shows that combined transaction time will be reduced from an average of 97 hours per day to less than 12 hours. As there are an average 500 concurrent users transacting in any given day brokers will save around 17 minutes per day - or one-and-a-half hours a week."
Watkins reckoned that could equate to a saving of $75 per week for every broker in AFG's network, using a labour cost of $50 an hour. He also commented that it opens the door for mobile apps to help brokers assist clients
According to Oracle, Exadata "combines a database and storage in one box", which acts as a one-stop shop and negates the need for applications to be spread across several servers. The Commonwealth Bank was the first local Exadata customer.
Latest Comments
Total:
9
comment(s)
Country Broker on
11 Aug 2010 10:13 AM
As a PLAN member I hope they are looking at this article.
Stephanie Retchless on
11 Aug 2010 10:22 AM
And what a miracle it would be if the banks actually provided their commission within 6 hours - long live the days of miracles!
Broker on
11 Aug 2010 10:27 AM
Can anybody actually see a valid reason why it takes these banks up to 6 weeks to pay us, other than to sit on the cash in the meantime?
oldBroker on
11 Aug 2010 11:50 AM
My aggregator runs their operations with a commission system which costs around $500 per month and can physically pay-out at any time. AFG spends a $1M of the broker''s commissions on theirs. The day that aggregators outlive their usefulness will be a happy day for me.
newbroker on
11 Aug 2010 03:07 PM
"Old broker" yes you are, the day aggregators don''t exist is the day the 3rd party industry shuts down, its time you woke up and got on board or get out....
Tony on
12 Aug 2010 10:15 AM
Interesting comment by New broker. Maybe you need an aggregator to hide behind?. I just can''t see the value in 18 or 20% of income going to the aggregator for the level of service they provide. Note that when the banks lowered commission, they didn''t lower their cut. This new sysytem is bot helping brokers, its helping AFG cut their own costs and we are supposed to be thankful for it. Yippee.
Chris on
12 Aug 2010 12:27 PM
This might be a good time to ask your aggregator how much unpaid commission is sitting in their orphan accounts and what happens to the interest on it? I heard the big aggregators have $3M or more each. That money (and, arguably, the interest) belongs to brokers!
Whatever technology is used by aggregators the lesson is to make sure you have your own technology to independently check your payments. Many brokers I know get short-paid $500 or so every month and only get it because they make a claim.
Aggegators have an important role in our industry but there''s only one person that will put you first when it comes to getting properly paid - you! So get chasing what you deserve - 100% of your commission, 100% of the time.
Dave on
12 Aug 2010 05:06 PM
Ah Chris pushing your own product there, at least be upfront about it.
oldBroker on
13 Aug 2010 11:14 AM
Newbroker: You have a very short-sighted view. The lenders are beginning to use technology to individualise their dealing with the brokers. They now individualise brokers now in terms of what deals/LVRs/etc. a particular broker can submit... they individualise the commission generated to a particular broker based on a myriad of performance-related criteria. All that''s left is the ability to physically ''pay'' an individual broker, and this will happen. Once this happens, what is the role of the aggregator? Organising PD days?