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The Big Story: Competition grows among aggregators

Mortgage brokers are looking for more support from their aggregators as they deal with the pressures of new regulations.

Video transcript below:

Clare Costigan, Australian Broker News TV
Clare Costigan:
 Hi, I am Clare Costigan and you are watching the Big Story on Australian Broker News TV.

As mortgage brokers come under increasing pressure to adhere to new compliance requirements, the industry is looking for more support than ever before.  Aggregators across the board are stepping up to the challenge, offering a range of options for brokers.  But is there space in the market for a new model.  Industry stalwart, John Kolenda thinks so.  He’s launched New Aggregator Finsure which promises to reward brokers with attractive commissions and high levels of support.
 
John Kolenda, Finsure
John Kolenda:  Well I have been in the industry some 18 years and recently there has been a real lack of innovation and change in the industry.  So I think what we bring to the table is two very unique models and one which has never been done in Australia or the world and they are very compelling and unrivalled propositions for brokers.
 
Clare Costigan:  He says he’s found a number of brokers who are dissatisfied with the current offerings and are looking for a change.
 
John Kolenda:  With what we have seen over the last couple of weeks since we have launched, definitely there is some unrest amongst the brokers.  I think that they are looking for viable alternatives, they are looking for change, they are looking for innovation which they haven’t seen in the industry and that’s what we bring to the table.
 
Clare Costigan:  Director & Solutionist for redconcierge, Sarah Wells agrees brokers want more from their aggregators, but says they are under pressure to comply with new regulations.
 
Sarah Wells, redconcierge
Sarah Wells:  I think to a certain degree brokers are dissatisfied with the industry as a whole at the moment and unfortunately I think aggregators are bearing the brunt of that dissatisfaction for a number of reasons.  With increased compliance requirements, brokers are now looking to aggregators for more and more support than they had been prior.
 
Clare Costigan:  Mardee Crane from 1st Street Home Loans says there is always room in the market for a new more innovative model, but what brokers really want is a good working relationship with their aggregator. 
 
Mardee Crane, 1st Street Home Loans
Mardee Crane:  Look, you know at the end of the day we are all in here to do a good job and do the best of our ability and to make a little bit of money on the way is great, but I think again the communication is key.
 
Clare Costigan:  John Kolenda says Finsure offers a unique proposition to brokers.
 
John Kolenda:  If you have business opportunities and models that brokers are attracted to and they are compelling, then brokers will work with their feet and they make the decision to move.  So yes I think we have got two very good offers which I think will attract brokers to make their switch.
 
Clare Costigan:  For more news on the mortgage industry, click around the Australian Broker News website.  I am Clare Costigan, I will see you again next week with the Big Story.