Aussie throws its hat into to aggregator market with the purchase of NMB. We speak to JAMES SYMOND of Aussie about the move.
Video transcript below:
Donna Sawyer, Australian Broker TV
Donna Sawyer: If aggregators think the market is fiercely competitive already there ain’t seen nothing yet. Aussie Home Loans has moved into the space with the purchase of NMB and James Symond says, they have their sights set on rising to pole proposition.
James Symond, Aussie
James Symond: Aussie just doesn’t purchase company like an NMB and just play the play, we certainly play to aggressively be the number One, number Two player out there and we compete hard. So certainly we can see ways in which we can increase the business, ways in which we can improve the business, ways in which we can make a difference to the marketplace as we have done with Aussie brand and our retail businesses currently.
Donna Sawyer: In fact it’s already laid out a strategic plan to grow the business including acquiring other aggregators.
James Symond: There are two stages. Certainly a recruitment plan is evident, organic growth is still a key, quality organic growth is a key. NMB is a high quality brokerage, it’s only a smaller aggregation business, but it’s a high quality aggregation business and to us that was very important but certainly it’s the marketplace that’s opening up more and more, being more acquisitive for further quality aggregation businesses is certainly something that we are very interested in.
Donna Sawyer: And he says consolidation is likely to continue as aggregators adapt to changing market conditions.
James Symond: We are seeing more and more consolidation. You have got a marketplace where margins are decreasing, you have got a marketplace where the commission cuts from three years ago are certainly biting today. We have got a market place where we are clearly seeing and have been for some time - the big are getting bigger because they need to be. They are needing to get economies of scale. The small are becoming state based and specialised so they can really control costs. The danger is those aggregators or mortgage brokers that are in the middle and that’s the part where you will see lots more mergers and acquisitions.
Donna Sawyer: James Symond says, the aggregator battle for market share is being fought on a number of fronts, but IT support is likely to be critical in its efforts to be a serious competitor.
James Symond: Technology is a key thing, you know the support is a key thing. At end of the day we are in a business, where we have been very successful for a very long time and one of key ingredients for that success is relationships. So hopefully what we will bring to NMB is our skills in relationship. So it’s about support, it’s about IT, it’s about appropriate commissions, it’s about helping them build the business, it’s about having an overall high quality relationship that we can actually partner with these people for a very long time and build the business together.
Donna Sawyer: So, how will Aussie’s purchase of NMB affect brokers? James Symond says, any extra competition is good for the industry.
James Symond: Any high quality brokerage should benefit the industry overall. We intend to ensure that NMB continues on with their theme of being a high quality brokerage, certainly we are looking for explosive growth over the next year or two or three.
Donna Sawyer: This is Donna Sawyer reporting for Australian Broker TV.