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Finsure defended the benefits of mortgage aggregators following recent challenges from brokers, addressing mounting concerns over fees and reiterating their benefits for long-term industry professionals.
The comments, originally published in an article on Monday, 24 February in Broker Daily, highlighted the downsides of using aggregators.
While the brokers applauded access to lender panels, CRM platforms, tech, compliance, and managing credit licences, they also questioned the rate of fees against services provided, and their usefulness for industry veterans.
Finsure CEO Simon Bednar addressed the concerns, claiming aggregators provide an “umbrella” for brokers.
“Aggregators play a vital role in providing the umbrella framework to support their members in response to these pressures and ensure we continue to achieve the best outcomes for their customers, their businesses and lenders,” said Bednar.
He went on to say that an “imbalance” between these three channels “resulted in government overreach such as the Hayne Royal Commission, which had recommended trail commissions for all mortgage brokers be removed until intervention from the industry, particularly aggregators.”
Bednar also said that increased regulation is placing added strain on brokers, who requires support.
“The majority of brokers are time-poor and needing greater support to remain competitive. They need leads, they need loan processing support, they need additional options to grow their revenue,” Bednar said.
He said that aggregators should promote transparency and urged brokers to address any complaints directly.
Aggregators are important, not perfect
So, while aggregators are important, as was outlined in the article, this doesn’t mean they’re perfect. Criticisms should be met with solutions, not offence.
Speaking to Broker Daily, FirstPoint Mortgage Brokers’ director Troy Phillips agreed there is room for improvement.
“While aggregators add significant value, there are a few areas where they could enhance their offerings. Everyone wants improved technology and integration,” he said.
“A broker not investing in tech and customer experience is short for this world. I suppose a more tailored support for brokers at different stages of their business journey would be beneficial, but that’s at a cost to the broker. Additionally, streamlining compliance processes without adding unnecessary administrative burdens could help brokers operate more efficiently while still meeting regulatory requirements.”
Phillips didn’t deny that aggregators play a crucial role in the industry. However, he also recognises an oversaturation in the market that “needs rationalisation by merger and acquisition.”
“There are too many brokers in the bottom 25 per cent of the market and too many aggregators as well. That is just a fact, the lenders need to help rationalise the market too,” he said.
In the future of aggregation, tech could prove to be a major disruptor, as access to tech becomes easier and higher on priority lists. Phillips believes this could push more consolidation forward.
“The future of aggregation will likely be shaped by advancements in technology, data analytics, and evolving regulatory expectations. Aggregators that invest in AI-driven solutions, automation, and real-time market insights will provide brokers with a competitive edge,” he said.
“There’s also an increasing demand for personalised support and business coaching, which could see aggregators shifting towards a more holistic partnership model rather than just being service providers. I think brokers that are essentially one-man brands would benefit from a branded structure too.”
So, what should a broker look for in an aggregator? Obviously, tech is a major consideration for Phillips, but so too are strong relationships with lenders.
“An aggregator should act as a strategic partner, offering tailored solutions to help brokers grow and adapt to industry changes. A commitment to compliance, ongoing education are critical. [Personal development days] and advocacy on behalf of brokers are also essential in ensuring long-term success in the industry,” Phillips said.
Phillips echoed sentiments similar to the brokers we spoke to in the previous article. Aggregators provide an important service and have helped shape the industry into what it is today.
This doesn’t mean that they are perfect and working to be better and do better should be top of mind. Aggregation groups can keep brokers satisfied through transparency and attention.
