Perth-based financial services firm sets sights on continued growth for both the company and its broker network
Australian Finance Group (AFG) has reaffirmed its commitment to its “business model of shared success” that has defined the company’s growth and supported the mortgage broking industry over the past three decades.
“Our business model has always been one of shared success,” said AFG chief executive David Bailey. “When our brokers grow, AFG grows.
“Our model of shared success remains. AFG brokers will continue to grow and prosper, playing a vital role in helping Australians source competitive finance for all their borrowing needs.”
AFG is celebrating its 30th anniversary this year, marking a significant milestone for the Perth-based financial services company.
Founded in 1994 by Kevin Matthews, Brett McKeon, Malcolm Watkins, (pictured above, from left to right), and the late Bradley McGougan, AFG’s establishment spurred competition in the lending market, resulting in substantial savings for borrowers.
At a recent event commemorating the anniversary, Bailey reflected on the company’s early days.
“The AFG business – and effectively the mortgage aggregation industry – started in a small office in the Perth suburb of Subiaco,” he said. “Over the next two years, we expanded across the country, working from an office so small the photocopier had to be wheeled in and out daily to make space.”
Since going public on the Australian Securities Exchange in 2015, AFG has grown into one of the country’s leading financial services companies. It now operates eight offices across five states and employs more than 300 staff, supporting a network of 4,000 brokers. The company now settles over $60 billion annually in mortgages, asset finance, and commercial finance.
Two of the founding directors, McKeon and Watkins, remain on the board, while Matthews retired in 2019. McGougan died in 2013 after a battle with leukaemia.
Over the years since its inception, AFG has introduced several industry firsts. These include the rollout of trail commissions in 1996, professional indemnity insurance for its network, and a proprietary CRM system, Flex, in 2003. The company also established compliance and training programs to support brokers.
“Our success is built on the foresight of our founders, who trailblazed many of the developments commonplace today,” Bailey said.
He noted key diversification moves such as launching a securitisation business in 2007, investing in commercial lender Thinktank in 2018, and acquiring asset finance provider Fintelligence and finance software provider Broker Engine in 2021. Earlier this year, AFG launched PartnerConnect, a spot-and-refer program for brokers.
The company said its lending arm, AFG Home Loans, continues to grow, providing products tailored for borrowers underserved by major lenders.
“We’re proud to be at the forefront of creating competition and choice, which drives more competitive pricing from banks, saving borrowers substantial amounts,” said Bailey, who added that the competition fostered by brokers has contributed to a reduction in net interest margins of about 3% over the past 30 years. He also pointed to the increasing dominance of mortgage brokers in Australia.
“More than 74% of home loans in Australia are now written through a broker,” Bailey said. “This speaks to the trust consumers have in brokers, particularly as bank branches continue to close across the country.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
