Business outcomes - Quest for the perfect platform

Over the years, major aggregators have invested millions in their technology to keep pace with the needs of a highly IT-savvy broking industry.

From loan comparison to commissions management, almost every aspect of the business of broking is now managed with technology – generally provided by their aggregation group.

But despite the best efforts and heavy investment from brokerage and aggregation groups, almost two- thirds of brokers who responded to a recent Adviser straw poll said they were dissatisfied with at least one aspect of their aggregator’s software platform.

Of the 366 brokers surveyed, 66.1 per cent said their aggregator’s technology platform failed to meet the broker’s existing business requirements.

While most brokers feel that their needs are largely catered for, it is clear that it is hard to satisfy every broker’s needs. One concern is database functionality, with a common complaint that aggregator software does not come with enough features.

Traditionally, an aggregator’s software package includes calculators, product ranges and lender comparisons, document collation and lodgement functionality, and settlement tracking.

But some aggregators do not provide their brokers with software that allows them to manage commissions, taking referral fees and staffing costs into account.

Brokers such as Brett Amos, director of Seven Point Finance, have decided to look further afield for an external customer relationship management (CRM) application to complement their existing aggregator software.

“The problem I find is that the existing software doesn’t do the job, especially when it comes to database functionality,” he says.

Mr Amos’ situation is not unique and it’s a problem that aggregators recognise. Loankit owner Kym Rampal agrees that aggregator software can often be too specific and may not address the general needs of its brokers.

He says aggregator software should combine all the obvious and general needs of a broker including “commission enquiries, lender updates and product comparison”.

THE UPSIDE OF IN-HOUSE SOFTWARE

Although there can be shortfalls in the software provided by the brokerage, Mr Rampal says there are a lot of benefits to be gained by brokers who stick with the software they are provided.

One such advantage is a consolidated fee structure.

Brokers who use aggregator software for all of their needs, avoid paying external software providers.

“Moreover, you don’t have to input all your data into the various technology platforms, because your aggregator will already have the commission structure you use integrated into their platform,” Mr Rampal says.

But while the benefits of using aggregator software are many and varied, Mr Rampal says he is “yet to see anyone get it right”.

“The good thing about aggregator software is that it is constantly evolving. Aggregators, including Loankit, are always surveying their brokers and asking them about their software needs to see if they can develop an IT platform that caters to those needs,” he says.

“To get it right, aggregators need to be constantly surveying their broker market, be adaptable to change, be able to make any changes quickly and efficiently and provide a system that is easy to navigate.”

As the Australian broking industry has evolved, so to have the options when it comes to technology, and there are now alternatives open to brokers who are not happy with the software they are given by their group.

Technology provider Pisces’ general manager Vincent Turner says although many aggregators try to cater to their brokers’ needs, they rarely have the expertise needed to develop a quality platform. And where they do include extra features, brokers are usually not qualified or trained to use them.

“I don’t understand why some aggregators try to reinvent the wheel – in my view it’s a wasted resource,” Mr Turner says, adding that aggregators often spend “enormous costs and resources developing software solutions that brokers may or may not require”.

Mr Turner says aggregator software has traditionally been very basic to ensure it meets the fundamental needs of the broker channel.

THE FUTURE OF SOFTWARE DEVELOPMENT

As a result, a growing number of brokers are looking to software providers such as Pisces to supply them with a program that satisfies their niche requirements and that can be ‘tacked on’ to their pre-existing platform.

“Pisces has made a significant change in recent times by selling ‘individual pieces’ of business technology rather than selling the ‘whole package’ to brokers and aggregators,” he says.

Stargate chief executive officer Brett Spencer says software ‘pieces’ rather than ‘packages’ are the way of the future and are better able to help brokers create the ideal platform for their business.

“A broker runs his own business, not the business of his aggregators. A broker’s business needs are quite different to the needs of the aggregator,” he says.

Stargate will soon launch a new version of its

long-running ‘Symmetry’ platform, a full end-to-end CRM platform currently used by around 2,000 brokers.

The new version which will be launched in April has been built on a brand new Microsoft Dynamic CRM system.

IT PAYS TO LISTEN

While software developers such as Pisces and Stargate may claim that aggregator software fails to meet brokers’ needs, it seems many brokers are happy with things just the way they are.

Smartmove director David Brell says his aggregator’s software is pivotal to the successful operation of his business.

“I am very much pro-software, as it has hugely benefited my business. It is our backbone. I don’t know how other brokers survive without it,” he says.

Mr Brell says CRM software helps him manage his eight-person team and business seamlessly.

“Our aggregator’s CRM software enables our staff to each access and monitor essential components of our business, such as client relationship handling and marketing, loan writing volumes and other business intelligence, commissions management, client contact details and client history,” he says.

“For a smaller team, I could see why brokers would steer away from using aggregator software, given the licensing cost, and where programs like Microsoft Office might do an effective job; but with a team like ours, I find [aggregator CRM software] essential,” he says.

According to Mr Brell, his aggregator software is simple to use and manages to save him both time and money.

“My aggregator software instantly generates emails to clients on their birthday, which saves me hiring and training a staff member to do the same tasks,” he says.

But while Mr Brell is a supporter of aggregator software, he concedes it sometimes has unnecessary features.

“We don’t use the calendar included in our CRM software, as we find that programs like Microsoft Outlook do the job just as well,” he says.

“If we don’t like an application included in the software package, we just don’t use it.”