Connective brokers saw record-breaking lending activity in 2024, settling $104.8 billion across all loan types, a 10.5% increase from 2023.
The fourth quarter was the strongest, with $30 billion in settlements, marking a 14% rise from the previous year’s best quarter.
December emerged as the highest-performing month, with $10.2bn in settlements.
Connective CEO Glenn Lees (pictured) credited this growth to brokers’ dedication and adaptability amid economic challenges.
“In a year marked by high interest rates and persistent inflation, our brokers remained focused on delivering the best outcomes for clients,” Lees said. “Their resilience and expertise continue to build borrower trust and drive broker market share.”
Commercial lending saw the highest growth rate, with $13.8bn in commercial loans settled – a 26.3% jump from 2023.
This momentum was fueled by increased broker participation in commercial finance and a broader range of lending solutions within Connective’s lender panel and white label offerings.
Brokers currently handle 30% to 40% of commercial finance loans in Australia, reflecting a rising reliance on broker-assisted lending in the sector.
Lees noted that more brokers are diversifying into commercial finance to tap into new opportunities.
“Brokers are expanding into private lending, non-bank solutions, and structured funding,” he said. “We continue to invest in technology, lender relationships, and broker support to help them navigate this evolving market.”
To support this growth, Connective integrated CitoPlus into Mercury Nexus, streamlining loan submission and processing, making it easier for brokers to meet rising demand for flexible finance solutions.
While asset finance settlements dipped 1.32% to $3.9bn, Connective brokers outperformed the broader market, which faced high interest rates and declining consumer confidence.
“Asset finance didn’t see the same growth as in previous years, but our brokers remained resilient in a tough market,” Lees said.
Connective expanded its asset finance lender panel in 2024, adding:
Lees acknowledged that the removal of the $150,000 instant asset write-off affected many businesses but noted a late-2024 uptick in asset finance enquiries, signaling potential growth in 2025.
“Despite economic headwinds, businesses and consumers showed renewed confidence in late 2024,” he said. “We expect demand to strengthen in 2025, especially if the RBA delivers further rate cuts.”
With the federal election approaching, Lees suggested many businesses are waiting for economic clarity before making major asset purchases, but demand could rebound post-election.
Residential lending remained solid, with $87 billion in settlements, an 8.3% increase from 2023. Loan applications also grew 13.4% year-on-year to $126 billion, showing continued borrower interest despite market shifts.
Connective strengthened its broker support team, adding 18 new professionals and expanding leadership roles to help brokers navigate a changing landscape.
“Our focus remains on supporting brokers to deliver the best results for their clients,” Lees said. “We provide the tools, expertise, and backing needed to excel across all lending categories.”
As 2025 unfolds, Connective’s investment in broker technology and support will position its network for further success across commercial, asset, and residential finance.
