Specialist Finance Group managing director discusses the aggregator's success and plans for 2023
SFG has enjoyed ongoing growth and success in the last year, and managing director William Lockett is excited about the aggregator’s prospects for 2023.
In December, SFG reported that the total value of its loan settlements grew by 79% in FY22, compared to 43% growth across Australian aggregators. Its broker numbers were also up 32% year-on-year, with more than 300 new members joining the network in the previous 12 months.
Last year, SFG also announced that it had formed partnerships with digital lending and payments provider WLTH, as well as Australia’s largest customer-owned bank, Great Southern Bank, and home insurance provider Honey Insurance.
Lockett talks to MPA about the factors driving SFG’s growth; its strong relation-ships with broker members; current market conditions; work-life balance; and the new technology the aggregator is rolling out in 2023 to help its brokers shine.
MPA: SFG attracts high-quality brokers. Why is this, and how do you reach out to new brokers?
William Lockett: Our SFG aggregation services that we offer have a strong focus on the requirements of the individual member that is looking to join us. Predominantly, the main areas we consistently focus on are the use of technology, the high level of service we deliver and the flexible commission models that we also provide.
High-quality brokers require high-quality service and business synergies, which SFG provides.
Our true north and core business model is that of being the best aggregator possible for our business partners, and a large part of our continual growth now comes from within our SFG members and the recommendations and word-of-mouth referrals that they provide the broader industry.
We also partner up with our SFG members to ensure that our service level never drops and our members have constant and regular business support.
MPA: Some of your members have been with SFG for 10 to 20 years. What is the secret to maintaining these long-term relationships?
WL: The secret is making sure you have a good relationship, and this fundamentally revolves around providing good business support and good communication.
The secret ingredient is to do the basics consistently well, and our SFG members and business partners then enjoy the reliable support that we provide, and it’s one that they have come to trust and enjoy.
MPA: SFG recently held its national conference in Perth in November. How did it go?
WL: We were very excited to again have our 2022 SFG National Conference & Awards in Perth in November after it was postponed for two years due to COVID restrictions.
Our national conference showcased the very best of Perth and Western Australia, and it was our best-attended national conference in our 32-year history. The feedback we received from our SFG members and business partners was outstanding and world-class.
We’re also excited that the 2023 SFG National Conference & Awards will be held at The Sheraton Mirage in Port Douglas, Far North Queensland.
MPA: Is it true you have a golf simulator in your new Sydney office?
WL: Yes, it is – we showcased our new SFG Sydney office in late 2022, incorporating a full golf simulator into the office. This feature not only looks amazing but it’s great fun for the staff to use, and a lot of our business partners have enjoyed it too, when they’ve attended the office.
Being a lover of golf, too, helped, as if I was not in finance my dream job would be to be a professional golfer travelling the world and playing the best golf courses in perfect weather.
MPA: Given rising interest rates, what are the current market conditions for brokers, and what does the future look like?
WL: We’re currently going through market conditions that SFG has never seen before in its 32-year history, and with particular reference to the 10 consecutive interest rate increases that have occurred.
Even though the adjusted interest rates are still reasonable in historical terms, the adjustment and shock of 10 consecutive increases coming from a base cash rate of 0.10% has made both our industry and its clients apprehensive.
This business environment, along with low unemployment, still creates a lot of opportunities for brokers to assist their clients in reassessing their finance options and then achieving the best option for them moving forward in this changing landscape.
MPA: How do you balance family life with running a national aggregator?
WL: As anyone who runs their own business will know, it’s always a difficult juggle to separate work and family life. One of my best attributes is my time management, which allows me structured time for both me and my family – that includes going on holidays.
I absolutely love the weekends, which generally means being at home with the family and our two fur babies, and if the weather is good, heading down to Cottesloe for a swim and breakfast.
MPA: What will SFG be focusing on in the next 12 months?
WL: Every year our focus is on continuing to improve the aggregation services that we provide our SFG members.
We have two major projects for 2023.
One is to complete the rollout of our new commissions platform, SFGassist, and we hope to have this completed by the end of June 2023. This is probably one of the greatest tasks we have undertaken given our 30-plus-year business history and the magnitude of data that needs to be migrated.
The second major project for 2023 is the rollout of the new version of SFGconnect. We gave our members a preview of that at our SFG national conference, and this new rollout will incorporate many additional features and benefits that will assist our SFG members in this ever-increasing digital age.
