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ISCOVER
Jessica Darnbrough
Connective has directed criticism at some of the biggest aggregation groups for the way they report their members’ productivity.
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Connective, which currently settles approximately $1.3 billion a month, said settlements are the only “meaningful performance indicator”.
“While some aggregators speak of lodgements, applications or loans processed, the focus should be on settlements as this is the only meaningful performance indicator,” Connective principal Murray Lees said.
“All other measures may sound impressive but they don’t translate into income in the pockets of the brokers.”
One aggregator which does not report dollar of loans settled is AFG, which records the value of loans processed each month instead.
Earlier this month, AFG’s latest Mortgage Index found the aggregator had processed more home loans in August than at any time since March 2009.
Despite these impressive statistics, Mr Lees said data such as this provided by a number of aggregation groups is not an accurate reflection of the success of the aggregator.
Mr Lees said Connective, on the other hand, had managed to grow its market share thanks to a swelling number of high calibre brokers joining the group.
Over the last six months, Connective has increased its broker numbers by 18 per cent, with overall membership now sitting at 1,550.
“We are attracting high calibre brokers to our service and this is being reflected in our settlements, which now average $1.3 billion each month,” he said.
“We’re very encouraged that a growing number of brokers are seeking an alternative to the traditional commission split aggregators and equally pleased that our settlement volumes are growing in step."
Murray Lees also noted that Connective is gaining traction in strategic locations of focus.
"While we're witnessing growth across all our markets, we're particularly pleased to see significant uplift in a number of states where we've dedicated significant resources to bolster our presence.
"Broker numbers in Western Australia have increased by approximately 30 per cent over the past six months, and we will continue to invest in the region to ensure we deliver an excellent service proposition to brokers in the west."
Connective’s loan book stands at $36 billion.
