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Australian Finance Group has marked its 30th anniversary, reflecting on the success and swell of the industry over the last three decades.
Western Australian-headquartered aggregator Australian Finance Group (AFG) has marked its 30th anniversary, with its founding directors reflecting on the evolution of the business, and the channel, alike.
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AFG was founded in September 1994 by four directors: Brett McKeon, Malcolm Watkins, Kevin Matthews, and the late Bradley McGougan. (Two of the founding directors – McKeon and Watkins – remain on the board of directors, while Matthews retired from the board in 2019 and McGougan passed away in 2013 following a battle with leukaemia).
At the time, mortgage broking was still in its infancy and the AFG model was the first aggregation business of its kind.
The founders came together in a move to better support the fledgling broking industry in Western Australia and formalise the structure for Western Australian brokers. Directors’ homes and McGougan’s business Mortgage Monitors were sold to fund the new business, with AFG opening its first office in Subiaco, Perth.
It opened a second office in Sydney that same year before launching into Victoria, Queensland, and South Australia in 1995.
In 1996, AFG negotiated the first trail commission for the Australian broking industry with Citibank and was a driving force behind how the broker remuneration structure was modelled.
By the year 2000, AFG was the largest independently owned third-party wholesale introducer of mortgages in Australia, with a loan book that had grown to $4 billion.
As more brokers joined the group and using Excel sheets, faxes, and couriers became unsustainable, the aggregator developed the first broker-specific customer relationship management (CRM) platform in Australia, Flex, and launched its data gateway that connected brokers with lenders (Trident) in 2003. The industry-first broker-to-customer CRM program SMART was rolled out in 2008.
In 2007, the business launched its securitisation business (later relaunched as AFG Securities) and listed on the Australian Securities Exchange in 2015.
Over the last 10 years, the aggregator has acquired a number of businesses (including asset finance aggregator Fintelligence and BrokerEngine, as well as a stake in commercial lender Thinktank) and is now one of the largest aggregators in Australia.
According to its latest financial results, the group achieved record settlements in the financial year 2024 ($62.7 billion) while broker numbers surpassed 4,000 for the first time. It now has eight offices across five states and over 300 employees.
One in 10 Australian mortgages is now reportedly written by an AFG broker, with the group having helped millions of customers secure finance.
Speaking at a function to celebrate its 30th anniversary last week, AFG CEO David Bailey said: “The AFG business – and effectively the mortgage aggregation industry – started in an office in the Perth suburb of Subiaco, expanding across the country over the next two years, and working from an office so small the photocopier needed to be wheeled in and out daily to make room for the team.”
Bailey said that, when AFG started the business, its founders never would have dreamt of seeing almost three-quarters of all Australian mortgages being written by a broker.
“This result is testament to the recognition and trust Australian consumers have for the broker model, particularly as bank branches continue to close across the country,” he said, adding that the company’s success was “built on the foresight of the founders, who trailblazed many of the developments which are commonplace today.
“AFG is proud to be at the forefront of an industry that creates competition and choice, ultimately leading the banks to offer more competitive pricing, which equates to massive savings for borrowers.”
The AFG CEO emphasised AFG’s ability to diversify and adapt to market changes, flagging its home loans business, its various acquisitions, and the launch of its spot and refer program Partner Connect earlier this year.
“And we’re encouraged by the future, which lies in helping our brokers operate efficiently and to ensure they maximise the opportunities diversification can deliver to their customers and their businesses,” he said.
“Our business model is, and has always been, one of shared success. When our brokers grow, AFG grows.
“Our model of shared success remains. AFG brokers will continue to grow and prosper, playing a vital role in helping Australians source competitive finance for all their borrowing needs – fulfilling AFG’s purpose of creating a fairer financial future for all.”
[Related: A look back at PLAN, Choice and FAST]
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