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Wholesale aggregators have failed: Osborne

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Australian Broker | 17 Jan 2012, 09:00 AM Agree 0
Wholesale aggregators have been lambasted for failing to deliver on their promise of building and supporting independent broking businesses
  • Wes | 17 Jan 2012, 10:21 AM Agree 0
    the whole point of wholesale aggregation is independence. We don't need a brand to secure business and revenue, we want to run our business models without interference (and in some cases inept management)and we don't see value in being kept in our place by brands which started out as small boutiques in the first place. The whoelsale aggregators understand this and stay out of the way of commerce being done while providing the scaffolding we need. Can't disagree more
  • Chris | 17 Jan 2012, 10:26 AM Agree 0
    How do branded aggregators equate to indendence for mortgage businesses? Heard it all before!
  • David | 17 Jan 2012, 11:11 AM Agree 0
    Yawn! It is incomprehensible to me why anyone with an entrepreneurial mind would tether themselves to an overarching brand. The majority of highly successful brokerages I know of are independly branded and I guess the rest are still "handcuffed" to their agreements.
  • WA Broker | 17 Jan 2012, 11:12 AM Agree 0
    MoneyQuest...never heard of them. Seems as though your branding is working a treat!
  • Patrick | 17 Jan 2012, 11:15 AM Agree 0
    Absolutely right Wes & Chris!! Branded aggregators take the lion's share of commission and their loan writers may as well be employees. Over 14 years I have noted that ex-bank employees tend to favour these. So hard to wean yourself.
  • BJ | 17 Jan 2012, 11:22 AM Agree 0
    These comments seem to be Michael pushing his new employer and their business model. In all markets a model that does not work for one is perfect for another. It is hard to believe though that wholesale aggregation has failed those brokers who are running thriving businesses. There might need to be more thought that goes into Michael's next public comment.
  • SMc | 17 Jan 2012, 11:31 AM Agree 0
    Consistently over the years, there have been many complaints from owners of EVERY franchise, large and small. Just to mention one spectacular failure - Refund Home Loans. Many of the top writers are non-franchised. Osborne has also failed to define the measure he has used in calculating the success of a broker. With franchisors taking a greater (often greedy) slice of the pie, the profitability of a busy broker is often substantially less under a franchise arrangement.
  • SanityPrevails | 17 Jan 2012, 11:31 AM Agree 0
    Branding you say! I know of many businesses that are apart of a wholesale aggregator and do not brand, that would write more business p.a than the brokerage ever did, more than Vow does currently and have no doubt more than MoneyQuest. Please, leave the branding issue alone, this industry succeeds very nicely on the back of non branded businesses.
  • Socrates | 17 Jan 2012, 12:07 PM Agree 0
    …and I thought today was going to be just like any other boring writing home loans day.
  • Geoff Smith | 17 Jan 2012, 01:34 PM Agree 0
    ... at least Michael is man-enough to put his name to his views, which says more about him as a professional than those of you hiding under a pseudonym.
  • Socrates | 17 Jan 2012, 03:33 PM Agree 0
    …oh come on, like 'Geoff Smith' isn't a made up name.
  • Mark Hewitt | 17 Jan 2012, 04:47 PM Agree 0
    What a load of rubbish Michael. You may may be qualified to talk about the level of support provided by your former employers, but you shouldn’t assume that all aggregators are the same. AFG’s Customer Relationship Management system SMART has been running for several years and delivers exactly the range of support you says is missing. Right now we are running around 750 websites on behalf of our members, updating them constantly with proprietary content. We are also delivering short messages for Facebook, Twitter and other online media. Plus all the usual birthday, Christmas and other customised messages you’d expect. Research we’ve commissioned shows that customers are more than twice as likely to use brokers that opted into the SMART CRM, and that their business grew 50% more than those who didn’t use the SMART package.
    We have invested over $50 million to deliver a technological advantage to our brokers, complemented by business development coaching which our own brokers rated 9.63 out of 10 for overall quality last year. I am aware that there are other aggregators offering these sort of services to thier brokers so it would be worth researching your comments views a little closer before commenting next time.
  • MIck Ward | 18 Jan 2012, 08:21 AM Agree 0
    The purpose of the majority of wholesale aggregators is to provide the tools, support and working foundations for a finance broker to build and develop their business in the shape, size, form or direction as they themselves wish to do. The leading wholesale aggregators in this country have achieved that, and have effectively changed and adapted to the market, for the better of their client base. The tools and support they offer is often not compulsory, but is certainly made available to any of their clients who wish to utilise them. There is a large majority of finance broking businesses that are quite successful, and they have managed to do that through remaining independent and being able to build their own brand and run their business their way, and do not need to rely on lead generation of big branding. These businesses often are as large, or close to as large, as they want to be with no aspirations of wanting to be multiple times bigger. Whilst big branding has it's place in industry, finance broking is predominantly filled with people doing business with people, and good personal referral sources are always going to be more efficient and cost effective than any lead generation or big advertising when it comes to finance broking. Wholesale aggregators allow a finance broking business to remain truly independent, which is the key when you building a saleable asset. The aggregators that truly get this are doing quite well.
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