Aggregators and banks are locked in a fierce battle for broker business. Advantedge's Steve Kane talks to Australian Broker TV about competition in a low credit growth environment and what aggregators are doing to boost their broker services.
Video transcript below:
Donna Sawyer, Australian Broker TV
Donna Sawyer: Aggregators are being put through the pressure test as banks move to entice more broker business. Steve Kane of Advantedge says competition between banks and aggregators is fierce.
Steve Kane, Advantedge
Steve Kane: I think when you look at the depressed credit market situation they are in which is likely to be continuing for some time, everyone is trying to make the best possible opportunity they can in relation to the lower level of credit growth. So we are seeing banks, aggregators really come to the fore in terms of the service propositions they are offering. Competition between the banks for new business is very very intense and competition between aggregators to recruit brokers, to provide brokers with the service that they require to service their customers is really heightened as well and all of that is driven off the back of this reduced hunger by customers in the main to seek finance.
Donna Sawyer: He says, aggregators need to constantly evolve their service proposition to satisfy their clients changing needs.
Steve Kane: Very clearly brokers are looking to expand their businesses through diversification, they are looking to hone the way in which they manage the relationships with their customers, they are looking to make sure that everything they do adds value to their customer relationships so the aggregators have got to make sure things they provide such as software platforms, support around NCCP, support around business management and how to run a business is continually developed for the broker experience. So everything we do as an aggregator has to have in the end game, something to improve that broker’s business.
Donna Sawyer: While lenders are ramping up their service to brokers with improved PD days and events, Steve Kane it’s upto aggregators to ensure learning and development initiatives are relevant and accessible.
Steve Kane: I think the PD days are very very good depending on what it is that you try to achieve in a PD day. Across the fast plan and choice broking networks we try to deliver products and services that will enhance their business. It’s not just about the lending products, we value the contribution of the sponsors, our lender partners into the PD days, but it’s really now about developing brokers as a business to move them away from this transactional stance that really the broking industry was in for many many years. So it’s around changing the face of those PD days.
It’s also running specific workshops, webinars that are topical for brokers needs at the time. So continuing to canvass brokers about what is it in your business that you require us to help you with and there is many ways to deliver that. It can be through face to face PD days, it can be through webinars, it can be through online tutorials, all of the media that we need to use to make sure the brokers can access it at their time.
Donna Sawyer: This is Donna Sawyer reporting for Australian Broker TV.