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One of the founders of NAB-owned aggregator Choice has announced the launch of a new broker-owned sub-aggregation company.
Purple Circle Financial Services is the brainchild of Choice Aggregation Services co-founder, Greg Pennells, who says that over the past decade he has seen hundreds of millions of dollars paid by institutions to the owners of larger aggregators and broker groups.
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“My plan is to see some of this money make its way through to brokers themselves,” he said.
As a pioneer of the finance broking industry in Australia, Mr Pennells himself reaped significant rewards in the early days, selling Choice in 2007 for $163 million.
“When I started out in this business I was one of two guys with zero industry experience but a huge level of determination and focus. In less than 10 years Choice had more than 1,300 members and was settling $1 billion a month. Those were crazy exciting times and I’m certain Purple Circle will be the next major success story of the industry.”
Purple Circle sub-aggregates under Choice Aggregation Services. Members receive all the services and tools currently provided by Choice, with no ongoing fees. Qualifying brokers then earn shares in Purple Circle, which once allocated, are theirs for life.
Mr Pennells said the company plans to adopt a co-operative approach to building best practice, with members having a strong say in the strategic direction of the company. He said no other aggregator offers this in Australia.
Choice’s head of SA/NT/WA, Paul McMellon, said the major aggregator is excited to have one of its founders back in the fold after all these years.
“I can only imagine what he will achieve with the experience he has under his belt this time round.”
[Related: New aggregator hits market as brokers move beyond home loans]
