Aggregator brings on 249 brokers

by Miklos Bolza30 Nov 2017
National aggregator FAST has seen a solid year of growth across the board, including expanding its broker network by 249 countrywide.

In New South Wales alone, the aggregator has brought in around 50 brokers, said Rob Ryan, head of FAST for NSW/ACT and Queensland, in a business update at a FAST professional development day in Sydney on Tuesday (28 November).

This brings the aggregator’s total broker network to 1,364, an increase from the 1,124 working with FAST five years ago..

As of the end of October, total settlements in residential, commercial and asset finance have hit $16.7bn with an extra three months to go for the year. This puts the aggregator in good stead to beat the $20.3bn brought in through the entirety of 2016, Ryan said.

“You can see we have slightly plateaued from the previous year and that’s evidenced by things such as the cessation of the foreign investor volumes coming through … and also business commercial and residential construction was capped by a lot of the lenders.”

With a lot of business flowing through to private funders as a result, FAST is looking to bring some of these funders on board, he said.

The aggregator’s total trail book has also grown from $61.6bn in FY16 to $67.1bn in FY17, an annual increase of 9%.

“That just continues to climb and we will continue to see that over the next few years.”

Breaking this down, the $20.2bn in total settlements written in the 12 months to the end of October consisted of $14.7bn in residential lending and $5.5bn in commercial and asset finance.

“That represents around about 35% of the total flows for aggregation so we are still by far the leading commercial and asset finance aggregator in the market as per data collated by Comparator.”

Ryan predicted that commercial lending will continue to rise in the coming year.

Related stories:

eChoice goes under administration

Aggregator floats merger with regional bank

Mortgage franchise aims to hit 300 stores

COMMENTS

  • by Worry Wart 30/11/2017 8:47:05 AM

    ASIC need not worry about reducing Broker Commissions. All these aggregators with huge recruitment targets, need to be hit with speeding tickets. Broker numbers are growing much faster than systems growth for loans. Initially this means a smaller piece of the pie for all, however longer term, if left unabated it is a disaster for all involved. Brokers and Aggregators will start collapsing (whoops we are already at the starting gates on that).

  • by Clarke Kent 30/11/2017 9:34:45 AM

    Who said it’s not a numbers game anymore?

  • by David 30/11/2017 12:36:21 PM

    Mr Worry Wort, given the average age of brokers is very high, don't you think it is prudent for any business like FAST, to recruit new members to replace those who will retire or wind down their businesses?

    The MFAA recently published the numbers on brokers that whilst showing there are now just over 16,000 in Australia, also showed the average amount of loans written is under $6Mpa (that's an upfront income of just about $30Kpa. That would hardly cover your operating costs). This only proves that a very large number are inactive and it should perhaps be asked why some brokers are allowed to retain a licence or membership if they are not active. I would like to see the numbers if brokers who did not write at least 12 loans per year were excluded.