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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