One-fifth of brokers plan to ditch aggregator

by BN30 Apr 2012

More than one-fifth of respondents to MPA’s Brokers on Aggregators survey are thinking of switching aggregators in the next 12 months

Twenty-two per cent of brokers surveyed said they were looking to change aggregators in the next year – nearly doubling the rate from the previous year, when only 12% said they were looking to change aggregator. The brokers looking to move cited software and systems as their biggest bugbear; other reasons included negotiating a better commission split and receiving a better supply of leads.

Accuracy, speed and transparency of commission payments were cited as the top reasons to switch aggregators, followed by IT and broker systems and quality of lending panel. Top barriers to switching cited by respondents were data migration and IT issues, clawback and trail issues, and licensing issues.

“While a switching war isn’t about to happen, it’s notable that the proportion of brokers looking to switch has increased since 2011,” said MPA editor Kevin Eddy. “It certainly suggests that competition in the aggregation sector is hotting up.

Eddy added that respondents’ views of aggregators were generally positive.

“Most of the comments made were supportive of aggregators’ efforts, and criticism was generally constructive,” he said. “The other key trend is that brokers are keen for their aggregators to represent brokers’ interests more forcefully.”

To see the full results of MPA’s fifth Brokers on Aggregators survey, see issue 12.5 of MPA – out now.

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COMMENTS

  • by Qld Country Broker 30/04/2012 10:16:56 AM

    Not that I am thinking of switching - But aggregators branding must be very average to the public - because in 8 years with a major aggregator - I have not had one lead come from them , not 1. So ask the question - yes we need to have them for software to lodge and access to a panel of Lenders - that is a straight Service offering , but what is it worth ? - on my calcs I am paying over $25k in trail split to them now and more than that in Upfronts - Way off the mark -

  • by Ian 30/04/2012 10:19:55 AM

    ABO - How about putting together a matrix of costs, strengths and weaknesses for brokers to see whats out there?

  • by Not Happy Jan 1/05/2012 11:34:27 AM

    I am with a major aggregator who has introduced complicated and ineffecient software. After tolerating it for nearly 12 months time for a change. Looking for an effecient easy to use alternative? Any suggestions?