Aggregator fit important for brokers

by Rebecca Pike27 Jul 2018

Today’s regulatory environment reinforces the importance for brokers to find a good cultural fit when choosing an aggregator.

According to the managing director of Liberty Network Services (LNS), the current challenges on the horizon for brokers make it more important to “have a partner they know is going to remain in the business for the long haul”.

Brendan O’Donnell set up the aggregation arm of specialist lender Liberty six years ago after leaving his role as CEO of Choice.

O’Donnell said, “It’s really important you feel comfortable in that environment. After all, when you engage with an aggregator you engage with a partner to grow your business. So there’s a better chance of success if you find the right partnership.”

With so many aggregators vying for a broker’s attention, O’Donnell said there were key things LNS did to stand out from the crowd, advising that brokers look for these differences in their aggregator.

He said, “Our strategic direction has been to ensure that we have an offering that’s fit for purpose, and it meets the broker’s needs.

“The key to standing out is offering something different. Just as brokers want to stand out amongst their customers and referral partners, aggregators want to do the same thing.

“They need to have industry-leading technology. They also must have a good compliance process and provide appropriate education and training. All those things are important when it comes to choosing the right aggregator.

“LNS also stands out because we help brokers diversify their revenue streams. Diversification is paramount to what we do.

“Whether you’re a residential broker wanting to get into commercial lending, or a motor broker wanting to learn more about SMSF lending, we’ve got the expertise to do that very well.”

The focus on diversification is why LNS uses the term advisers rather than brokers.

O’Donnell said this goes to the core of what the group does.

“Liberty Advisers are encouraged to focus beyond mortgages. When you’re talking to customers it’s all about giving the appropriate advice and creating the best outcome for the customer. It’s not just about focusing on the home loan. There’s much more to finance than mortgages.

“Diversification is also about becoming knowledgeable on where to go when the banks say no.

“We help position our advisers as the local finance ‘go-to’ person in their community. Customers who are struggling to get loans from the banks because of defaults or tax debts, anything like that, our advisers can help.”

 

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