Aggregator Connective has claimed a growing number of brokers are questioning the suitability of the commission-split aggregation model and the value these businesses provide.
With 1550 brokers now aggregating with the business - a jump of 18% in six months - principal Murray Lees said brokers are increasingly seeking an alternative to traditional commission-split aggregators.
“We are attracting high calibre brokers to our service and this is being reflected in our settlements, which now average $1.3 billion per month," he said.
Lees said superior service at a competitive cost is enabling it to attract high calibre brokerages, such as Australian Unity which recently joined Connective.
“We’re also witnessing organic growth in broker numbers, where existing member brokerages are expanding operations and hiring more brokers to their ranks. This demonstrates that we’re assisting our members to operate more profitable businesses, and ultimately that’s our end goal,” Murray said.
Lees also hit out at other aggregators such as Australian Finance Group, and way in which they publicly publish their loan figures.
“While some aggregators speak of lodgements, applications or loans processed, the focus should be on settlements as this is the only meaningful performance indicator," Lees said.
“All other measures may sound impressive but they don’t translate into income in the pockets of the brokers."
Lees previously told Australian Broker that Connective was 'dislodging some bricks' in the WA market, and Lees reiterated this point, saying it had seen 30% growth in the state over the past 6 months.
Connective's loan book currently stands at $36 billion.