Switching aggregators: Technology

In the broker world, technology is becoming increasingly inseparable from success. Effective use of technology results in less time spent on the rigmarole of loan processing and more time dedicated to the end customer.

For many brokers, technology can either make or break an aggregator’s offering.

Technology is often cited as the primary reason for brokers looking to switch groups, and it is absolutely essential to find one who best caters to your needs.

Time to adapt

With the new wave of digitally-savvy brokers comes the need for aggregators to up their game in all things tech.

However, according to a recent poll by The Adviser, an overwhelming 66.12 per cent of 366 broker respondents said their current aggregator’s technology platform does not meet all their requirements.

This alone proves the overwhelming need for aggregators to continually adapt to the changing market and adopt new digital offerings.

“Technology is crucial,” Liberty Network Services managing director Brendan O’Donnell says.

“The bigger the business, the more important it becomes.

“You want to be able to connect with your customers in the new world of digital. If you don’t have the capability technology-wise to do that, you’re going to struggle and eventually what will happen is you’ll become inadequate.”

Finsure managing director John Kolenda says technology has become such a staple in a broker’s business that many jump ship if they’re dissatisfied with their current aggregator’s offering.

“Technology will always be an important factor when looking to switch aggregators,” Mr Kolenda says.

“Considering innovation is born out of necessity, those with the best platform are the ones who can adapt it to the ever-changing needs of brokers. This includes user experience, automation of common tasks and effective management of a database.

“By excelling in these three areas, a broker is able to save time on a day-to-day basis, allowing them to focus more on customer service or prospecting for more clients, and saves the client valuable time in what can often be a stressful period in their lives.”

Connective director Mark Haron says the importance placed on an aggregator’s software has increased tenfold over the past few years.

“Many brokers realised how much more efficient their businesses can be if their aggregator has a good software platform,” Mr Haron says.

“The ability to have an integrated CRM with the loan application and lodgement to the lender, combined with compliance documentation that can be simply created using the information in the software helps brokers convert more enquiries into loans and makes the application process more efficient.”

What brokers want

What brokers are ultimately searching for in a technology platform is ease, speed and value – at least that’s what the aggregators say.

“Brokers are after a system that can handle all client-related functions effectively and efficiently,” explains Finsure’s John Kolenda.

“This can be anything from lead management and qualification (use of fast and accurate lender calculations to qualify a client), to a resourceful loan management system, through to a marketing platform that will allow them to maximise any potential sales opportunity.

“They are also after a system that can automatically perform tasks on their behalf. Having this ability is one less worry for a broker, giving them more time to dedicate to existing and potential clients.”

“The two main drivers of technology are making it as easy and as smart as possible to process a loan,” agrees Liberty Network Services’ Brendan O’Donnell. “Then of course, equally, to make the customer engagement piece as user-friendly as possible by accessing data and engaging with customers.”

Brokers also want aggregator software that can send information to borrowers and lenders, update information and statuses via email, mail merge and send text messages, according to Connective’s Mark Haron.

“It should allow brokers to segment and market to their database as well,” he says.

“It should also enable brokers to manage their loan progress in the stages they want to and also create tasks and templates that ensure the correct processes are followed, and correct documentation and wording is used for all communication.

“It should have hierarchy capabilities, allowing business owners to view all information and brokers their own individual information. It should also allow admin users their own logins so that they are not using the broker’s login – this ensures better compliance management.”

What’s on offer?

All the aggregators we surveyed agree that technology has become increasingly important, but what exactly are they doing to step up to the plate?

Liberty Network Services boasts its own iPad app Spark, which allows brokers to engage with customers anywhere, at any time.

“Spark leads our advisers through the [loan] process by virtually holding their hand, promoting the next steps, information requirements, compliance and so on,” Liberty Network Services’ Brendan O’Donnell says.

“It makes things easy and intuitive across the entire spectrum of prime and customer applications where lead management, customer management, loan assessment, submission and settlement are paramount.

“They also have access to a panel of lenders providing a full range of mortgage options for customers.”

Mr O’Donnell adds the Spark iPad app can improve brokers’ productivity anywhere between 25 to 30 per cent.

“We’ve had many brokers join us because of our Spark platform,” he says. “It is very different and unique to the industry.”

According to Finsure’s John Kolenda, his group’s technology and software offering is worlds apart from other aggregators.

“What makes the Finsure technology offering different is that it focuses on the customer, not the loan or application,” Mr Kolenda says.

“An example of this is our CRM’s ability to automatically communicate with all associated parties to the customer’s property purchase.

“When the loan is formally approved, not only will the customer be automatically notified by email or SMS the second this occurs, the system can also inform the real estate agent, accountant, conveyancer and/or solicitor to allow the broker the opportunity to not only assist the client achieve a loan settlement, but to help that client with the entire property transaction.”

Given Finsure’s CRM is proprietary owned, Mr Kolenda says his group is able to adapt to industry changes quickly and tailor the system to service brokers’ needs.

“Credit guides, preliminary assessments and credit proposal documents [can] be automatically generated from our CRM, eliminating any need for double data entry, and will also allow Finsure to electronically audit its brokers’ client files.

“This provides significant assistance to Finsure and its brokers, to meet the ever-changing regulatory requirements.”

Meanwhile, Connective is continuously updating its technology to benefit its brokers both in day-to-day operations and long-term success.

“We have weekly updates on our software platform with additional features being added,” Connective’s Mark Haron says.

“We have recruited more broker support managers to assist brokers use our software more effectively in their businesses. We have increased our IT help desk team and improved their excellent response times by incorporating live chat.

“We have also increased our development team to roll out updates sooner.”

Digital marketing

Of course, a feature on technology just wouldn’t be complete without mentioning digital marketing.

Although this new form of communicating with clients does not completely replace old school methods, it’s definitely something that shouldn’t be ignored.

Liberty Network Services has a high regard for digital marketing and has employed specialists on-site to help brokers enhance their capabilities in this space.

“We guide them on how to boost themselves on Facebook and what things they can do to really get the right responses,” Liberty Network Services’ Brendan O’Donnell says.

Although Mr O’Donnell admits digital marketing can take time for some brokers to get used to, it has a big impact on a broker’s business.

“We recognise that so we’re on a journey to enhance our offerings there and we’re very proud that our advisers are embracing that and doing a lot with us to become a lot more digital savvy,” he adds.

Finsure also places value on digital marketing, hosting a team of in-house experts who can help its brokers improve engagement.
“[Another] example of this is our premium marketing service called Digital Optimisation Program,” Mr Kolenda says.

“Any brokers who sign up to the Digital Optimisation Program receive five professionally written articles per month. Brokers have the ability to choose from a variety of articles that are tailored, in many cases, to specific segments of the market, such as investors or first home buyers.

“This is crucial as brokers can choose content to directly engage with segments of the market that they wish to target and engage with, thereby creating campaigns. Topical articles or blogs also assist with a broker’s organic SEO ranking as search engines deem websites with such content as more relevant.”

Meanwhile, Connective regularly emphasises on the value of digital marketing at its PD days and plans to feature it in its webinar series this year. The group is also a proud sponsor of The Adviser’s Digital Marketing Boot Camp.

The Adviser’s Digital Marketing Boot Camp is exclusively created for mortgage brokers, to provide the tools needed to execute and grow low-cost, high-return digital marketing strategies.

The one-day interactive event will show brokers how to simplify the process of running digital marketing campaigns, separate the tasks brokers can do themselves and those they should outsource, and identify and take advantage of digital marketing quick wins.

The event will be held in Melbourne on 4 May, Brisbane on 6 May and Sydney on 11 May.

Yay or nay?

A majority of groups we asked believe an aggregator’s technology offering is a sufficient reason for switching groups.

Not only does it enhance a broker’s capabilities and turnaround times, it also allows for a smoother customer experience, which in the end should be the primary goal.

“Technology is integral to the business, it really is. It has to work well, it has to be user-friendly and easy to navigate. If it’s not, people will start to look elsewhere,” Liberty Network Services’ Brendan O’Donnell says.

Connective’s Mark Haron agrees that in many cases, an aggregator’s technology can either make or break its core offering.

“We come across brokers that have no access to software systems from their aggregator or they are supplied by a third party at additional costs, and there is no real integration into the broker’s business,” he says.

“Additionally, it is [about] the support the aggregator provides in training and implementation of the software with the broker.”

However, Finsure’s John Kolenda says a number of brokers have multiple reasons for switching groups.

“There may be some brokers who rank technology as their primary reason, but there are also brokers who feel marketing or operational support services are even more important,” he says.

“When it comes down to it, the aggregator that can maintain the strongest offering across all services will be the one that succeeds in this market.”