Outgoing Australian Mortgage Brokers chief executive Paul Gollan has praised Aussie's acquisition of NMB, saying it is a good outcome for NMB brokers.
Sounding off on the popular Australian Broker forums, Gollan called the acquisition an "outstanding move" and said Aussie would be able to provide the technology capacity to help NMB brokers succeed.
"Aussie is well known for its great training, marketing, lead generation, and market leading software platform all which will add value to nMBs proposition. The battleground over the next few years will be in technology platforms and this is the cost barrier that would have been difficult for the boutique aggregators to overcome, unless a decent off-the-shelf supplier comes along and fills that gap," Gollan said.
Boutique aggregators face a disadvantage when it comes to technology, Gollan said. He predicted that staying ahead of the curve on tech platforms will make or break aggregators in the future.
"The aggregators that deliver technology platforms that make it easy for their brokers to do business with efficient, fast and reliable technology are the ones that will win the battle. It's already happening in fact," he said.
For this reason, Gollan predicted that large companies will continue to buy the remaining smaller aggregators.
"It is not so much the cost of operating an boutique aggregation business that is prohibitive, but the cost of not being able to match the big boys' technology that will see the process of consolidation continue. There aren't many aggregators left to buy, though," Gollan said.
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