Connective 'dislodging some bricks' from rivals

by Ben Abbott19 Mar 2012

Connective is taking AFG head on in the 'hard to crack' markets of WA and Queensland.

As competition for established brokers continues, Connective principal Murray Lees has said the group has 'paid its dues' in both states, and had recently successfully attracted key groups.

"We've paid our dues, particularly in WA," Lees told Australian BrokerNews.

"You have to have been around, and shown you are committed, and that you understand the market and its brokers, and we've done that and in doing so we've gained the credibility required," he said.

Lees said on average, WA broker businesses are more developed and diversified and their market penetration is much higher, largely because broking began and was licenced first in WA.

However, Lees said in these states, it was up against stalwart competitor AFG. He said Connective had been successful in 'dislodging some bricks' that may result in further moves to the business.

Connective now has about 1400 brokers, and is targeting growth of between 250 and 400 this year. Connective has a $27bn loan book, and expects to hit $1.5bn in settlements per month this year.

Lees said average broker settlements have gone up substantially more than numbers, which he put down to a clean-out of lower volume producers as a result of industry licensing.

Following claims from AFG's Brett McKeon that more of the remaining independent aggregators would sell within 18 months, Lees also moved to deny the aggregator was looking to sell.

Related stories:

Brokers' last stand: Aggregators to sell within 18 months

COMMENTS

  • by Paul Gollan 19/03/2012 11:06:16 AM

    My money is on Connective to win that war.

  • by Mark Hewitt 19/03/2012 12:54:37 PM

    Have just checked the brickwork Murray and can't see any missing bricks. The foundations look pretty solid as well.

  • by Mark Hewitt 21/03/2012 1:54:36 PM

    No doubt you are cashed up Paul but leave your money in your pocket.