Australian Broker forum is the place for positive industry interaction and welcomes your professional and informed opinion.

​Top broker ditches aggregator, rolls out sub-aggregation model

Notify me of new replies via email
Australian Broker | 05 Feb 2014, 08:00 AM Agree 0
Australia’s top broker has left the businesses' long-term aggregator as part of plans to provide support to smaller brokerages.
  • Louis | 05 Feb 2014, 09:02 AM Agree 0
    Have been doing this for years!
  • Coast Broker | 05 Feb 2014, 09:20 AM Agree 0
    Good luck to Colin is all I can say.
  • Dave Robinson | 05 Feb 2014, 09:38 AM Agree 0
    Good luck some diversification in the aggregator space is well overdue.
  • Active | 05 Feb 2014, 10:18 AM Agree 0
    Good on you Colin! I had a team of 14 brokers and I left PLAN in 2010, its the best thing I did for my team and their bank accounts and we never looked back. The support from our current aggregator and the software is the best!!
  • oldBroker | 05 Feb 2014, 10:36 AM Agree 0
    This is the nightmare scenario for aggregators. If the 80/20 rule is correct, then 80% of their revenue is generated by the top 20% of brokers. If enough of these top-guys leave as in the article, then the aggregator is left with the 80% of small-time brokers who do not generate sufficient revenue and (usually) require more hand-holding. This invalidates an aggregator's business model making it difficult to continue to provide services such as lead generation and software support/maintenance. The aggregators have difficult supplying these types of services now, nevermind with the defection of their top brokers.
    In other words, the aggregator business model is a middleman ponzi scheme that can unravel if enough groups such as MSA realise that they have power and can chart their own course.
    I, for one, celebrate this type of news.
  • Coast Broker | 05 Feb 2014, 11:17 AM Agree 0
    My comment was a bit tongue in cheek. I am part of a sub aggregation group with Plan Australia and we get very well looked after by Plan not only on a commission basis but also support. We have been approached by a number of other aggregators to move and have found that they cannot provide nothing better than what we currently have on offer through Plan. I would say that there is more to the move away from Plan.
  • Brett Thompson | 05 Feb 2014, 12:06 PM Agree 0
    I find it a little humourous! I am a small operator and have found Plan Australia to be professional and extremely supportive over the years i have been involved. Its a bit of a slap in the face when Plan Australia has provided the top brokers with "special privelages" and support to help their businesses grow!
    There is nothing wrong with the support that Plan Australia provides in fact compared with many it is right up there among the best if not the best.
    I do wish Colin the best in his new venture.
  • marty mcdonald | 05 Feb 2014, 12:38 PM Agree 0
    what happens to the trail?
  • Patrick McMenamin | 05 Feb 2014, 01:48 PM Agree 0
    This is just a change of aggregator from Plan to Finsure. The differences, I suggest, will be cosmetic. The big issue is that Plan will keep earning fees on the existing trailer book, despite providing nothing in the way of service other than collecting money for themselves. Surely there is a failure of consideration here and without consideration the contract is invalid. It is long overdue for the same rules applicable to financial planning to apply to mortgage broking. That is, only one licensee can be responsible for an authorised representative/credit representative at any time. The ongoing trailer income should be transferred when a broker (corporate or individual) changes aggregator. This would create real competition and service from this lender endorsed quasi-monopoly industry.
  • Allan | 06 Feb 2014, 07:17 PM Agree 0
    I heard that Finzsure gave them an equity stake in the business to get them across. That should be offered to all Finzsure brokers if true.
Post a reply