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'Little doubt' vertical integration causes conflict of interest, says aggregator

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Julia Corderoy | 23 Mar 2016, 08:19 AM Agree 0
A major aggregator has claimed there “is little doubt” that majority bank-owned aggregators are influenced by vertical integration
  • Grahame Hale | 23 Mar 2016, 08:53 AM Agree 0
    From what I have seen, it is just the opposite. Brokers genuinely want to get the best loan for their clients.
    I am with a bank owned aggregator and while they have their own white products we fit the loan to the borrower. That is common to most brokers I have associated with.

    All banks have their niche market and cannot move out of that due to inflexibility . Macquarie have been actively pushing to take up gaps left by the banks and very successfully. Brokers want a good out come for the borrower. It very hard to tell someone they can not get a loan.
  • Reg | 23 Mar 2016, 09:47 AM Agree 0
    Inability to move trail from some aggregators would be something the ASIC review should look at instead.
  • Independant | 23 Mar 2016, 10:07 AM Agree 0
    Ownership of the aggregator has absolutely no bearing on my recommendations.
  • Scott Beattie | 23 Mar 2016, 11:05 AM Agree 0
    I am with a non-bank owner aggregator, but in all honesty, I can't see any broker making a loan go to their 'owner' unless it's the right fit for the client.
    I can understand the perception of why this wouldn't be the case, but without any evidence to suggest otherwise, I would think its simply not the case.
    It would be very easy to see the evidence as well - just look at the lender split from aggregator to aggregator and compare the results - I dare say that there would be very little if any difference in where the lender is placed.
  • Buddo | 23 Mar 2016, 01:14 PM Agree 0
    And would there be an "influence" by the AFG spokesperson, to talk down his competitors? How dare they take the 'one size fits all' approach, & insinuate that I, or another other 'broker' will be influenced by the ultimate owner of the business!
    If there was ANY credibility in that statement, brokers as we know it, would cease to function. Can they honestly say that they don't "influence" AFG brokers to use their white label product, by way of higher commission, or promised turnaround times at least?
    This statement shows a large degree of ignorance in the very industry they operate.

  • Neil | 23 Mar 2016, 03:00 PM Agree 0
    Motive AFG? What a load of rubbish - just stirring the pot. Have you ever bothered to check your facts? I am with a bank owned lender, and like the others above we want what is best for our clients. If it was the case why is our "owner" languishing somewhat down the list of lenders when our internal results are out? And I can assure you, we don't get any favours!
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