Aggregation started as a relatively simple concept. Rather than banks having individual agreements with brokers, brokers could combine their market power to get a better deal and access to more lenders. But as the market has evolved and become more sophisticated, the role of aggregators has evolved with it. Aggregators now are no longer just a panel of lenders and a clearinghouse for commissions. Instead, they work to be technology providers, business coaches and educators. Australian Broker talked to several major aggregators about the changing state of the market, and how they’re responding.
An evolving role
Connective CEO Murray Lees agrees that the role of aggregators is more than providing access to lenders and paying commissions.
“That’s not enough anymore. We need to help our members achieve their business goals, to help them do better in business than they did yesterday. After all, we’re all in constant pursuit of improvement,” he said.
Lees said Connective was focused on providing cost effective aggregation services, but that the company also sees its role as a business facilitator for its members.
“We therefore support our ‘value-for-money’ proposition through excellence in innovative broker support services in the areas of IT innovation, broker training and education, marketing support and services, multiple income diversification opportunities, and broker and compliance support,” he said.
PLAN CEO Phil Quin-Conroy said aggregators could help brokers stay ahead of the technological curve.
“While brokers currently enjoy an unprecedented 50% market share of the mortgage market – brokers who want to stand out in an increasingly complex, crowded market need to be willing to adapt their businesses in line with technological advancements and industry trends. Aggregators provide the best value by assisting with this adaptation process. At PLAN Australia, we do this by providing market leading IT systems as well as a dedicated support team that helps our members leverage these systems and integrate them to improve and grow their businesses.”
And when it comes to technology, Finsure’s John Kolenda said a CMS isn’t enough.