Aggregators find brokers harder to budge

by Mackenzie McCarty18 May 2012

Mortgage brokers are becoming harder to shift by new aggregators looking to build their distribution networks, even though innovative new offerings are clamouring for attention.

Liberty Network Services managing director Brendan O'Donnell said that the recruitment market has entered a difficult period for those aggregators looking to attract brokers with a new proposition.

"There has definitely been a slowdown on the movement of brokers between traditional aggregators. It is more difficult now but there have been hard times in the past," he said.

Quoting MPA's recent Brokers on Aggregators Survey, O'Donnell said the promising thing for aggregators - including Liberty Network Services - was that close to 25% of brokers say they may look to switch.

"While that may have been closer to 50% a few years ago, if you are looking at 25% of about 10,000 brokers, there is still definitely a need there," O'Donnell said.

Liberty Network Services has managed to recruit 27 brokers since November last year, with O'Donnell saying that close to 20% of these were actually new-to-industry players.

"Remuneration is actually still relatively good despite commission cuts," O'Donnell said.

"If you are writing $1m to $1.5m per month and sustain that in terms of mortgages, and then diversity into motor and insurance you can make a fairly good living."

O'Donnell will be marketing the group's technological prowess at a roadshow around Australia in coming weeks, primarily the new iPad SPARK broker software platform.

O'Donnell said technology and marketing support were two of the most sought after attributes of any potential aggregator suitor, hence the group's investment in developing SPARK.

Related stories:

Liberty brings SPARK to branded arm

 

COMMENTS

  • by ozboy 18/05/2012 10:07:51 AM

    I think most brokers have now realised that all that glitters is not gold. Too many unfulfilled promises and better the devil you know. We all know an iPad won't write more business and besides every new player is promising the same thing, better IT and better marketing support where's the innovation in that?

  • by Country Broker 18/05/2012 10:21:15 AM

    I believe the greatest problem with shifting established brokers is simply explained , paper work , if a broker has say 20 accredations, the paerwork would be horrific , new police checks , new credit checks ,release documentation and then 20 new applcations t have those accredation transferred over < would do this NO WAY unless my current aggregator upset me, which has not happened. Add to this probably at least say 2 to 4 weeks in between the two aggregators any broker establishedfor say 4years or more would needareally good reason to even think about it

  • by 1martym1 18/05/2012 1:36:18 PM

    plus the aggreagtor has the agreement with the lender, so switching your book over is neigh on impossible.Would be good if it was possible and the trail stayed with broker not the aggregator (besides branded players such as Aussie and MC). It aint gonn happen though.