CHOOSING an aggregator is one of the most important decisions a broker will make, especially when they’re just starting out. While some brokers will opt to come under the umbrella brand of a household name that has a big branding budget (see page 6 for more), others will want the freedom and flexibility to grow their business and brand their own way. In this scenario, a wholesale or independent aggregator may prove a better fit
Wholesale and independent aggregators come in all shapes and sizes. The larger wholesale groups such as Australian Finance Group (AFG), Connective, LMG, Specialist Finance Group (SFG), and Finsure boast member bases comprising thousands of brokers. Smaller groups such as outsource Financial and Purple Circle Financial Services have a more family-like feel, designed to offer a more personalised service.
Brokers who choose a wholesale or independent aggregator often weigh up a range of factors. Some may want a lower price of entry (as franchise groups sometimes have start-up costs associated with opening a storefront, for example), while others may want to ‘own’ their clients and trail book – which not all franchise groups offer – so they can build a saleable asset.
But price is just one consideration. In an appearance on The Adviser’s Elite Broker podcast, Vaughn Clark, senior mortgage broker and founder at Clark Finance Group (who aggregates under SFG), said he approached finding an aggregator with the mindset any business owner would take to choosing a supplier.
“One of the things that we had to have was the best product range – an aggregator has got to have a really vast range of banks. The more banks you’ve got, the more opportunities and products you’ve got to provide clients and the more home loan options,” Clark said.
“Technology is [also] key. With the way business is moving now and the way technology is helping the whole process and consumer, you need to have strong technology support.”
Like the branded groups, wholesale and independent aggregators have made technology a point of focus in recent years and these improvements have a tangible impact on the service a broker offers.
Time, money, and resourcing are being pushed into customer relationship management (CRM) platforms, with compliance tech, open APIs, and marketing all built into the systems. Some even have client-facing portals for broker clients to access, too.
Sydney-based broker Shaun Bettman (who aggregates under LMG) says working with an aggregator with a strong focus on relationships and business support is a point of difference.
“With so many brokers juggling multiple deals at once, having an aggregator that goes beyond just providing tech or compliance help is essential,” Bettman says.
Bettman also encourages brokers who are tossing up between groups to consider how much the aggregator is willing to invest in their brokers’ success.
They all come with a different value proposition. It comes down to what the broker wants and how that would fit with their own particular business.
Phil Rice, EZ Finance
“It’s not just about the tools they provide but about the relationship and how committed they are to helping you grow in ways that align with your goals,” Bettman says.
Indeed, Connective broker Aimee Bergan from APC Home Loans told The Adviser’s Elite Broker podcast that she was attracted to its female-centric support.
“They’re really big in supporting females in the broker space. I actually think that they’re the largest aggregator with female brokers, which I loved. They have been extremely supportive and a big advocate for women, which I love,” Bergan said.
Phil Rice, mortgage broker at EZ Finance, who operates under boutique aggregator Custom Equity Group and also writes commercial loans through Viking Aggregation, says the important thing for brokers to realise is that every aggregator is different.
“They [aggregators] all come with a different value proposition,” he says.
“It comes down to what the broker wants and how of course that would fit with their own particular business.”
Just as every broker will have a different focus area, so too does every aggregator. Some brokers will thrive under the branded franchise model, whereas others will work better with freedom and flexibility. When that’s the case, a wholesale or independent aggregator might be just the ticket.
