NAB and Macquarie-owned aggregators counter broker suspicions at MPA Aggregators Roundtable
NAB and Macquarie-owned aggregators counter broker suspicions at MPA Aggregators Roundtable
Bank-owned aggregators have defended their response to proposed commission changes during yesterday’s MPA Aggregators Roundtable.
NAB-owned Choice Aggregation Services, FAST and Plan Australia were present, as well as Connective (part owned by Macquarie), publicly owned eChoice and independently owned Specialist Finance Group and Outsource Financial.
Asked whether a bank-owned aggregator could balance broker needs with banks’ commitment to the Sedgwick Review proposals, FAST CEO Brendan Wright was adamant: “FAST happens to be an aggregator owned by a lender but we happen to be an aggregation business that needs to deliver on its value proposition to brokers.”
“The fact that we are owned by a bank that needs to line up behind Sedgwick – as do all the banks, and have committed to that – means that we need to make sure it’s done in light of the third party industry.”
Choice CEO Stephen Moore argued that NAB’s investment in its aggregators demonstrated its commitment to the channel and that bank-broker cooperation in the ongoing combined industry forum show “we have the same vested interested and that is the success of the industry.”
Anja Pannek, Plan’s CEO, was part of the Challenger team that originally acquired the aggregators before its sale to NAB. Bank-ownership brought with it the potential to influence policy, she urged: “we’ve got a direct voice to one of the largest financial institutions in Australia…what my team is able to do is connect the sentiments of our members with our shareholders”
Challenges of part-ownership
Connective is part-owned by Macquarie Bank, but director Mark Haron insisted it had no effect on Connective’s approach to broker remuneration: “from the outset, we made it clear to Macquarie Bank that this ownership would not get them one iota more loans unless they get out there and earn it.”
Haron echoed Moore’s point about investment: “the investment by banks into mortgage broking and aggregation sends us a very important message that they actually see the value in the industry and are getting behind it.”
Asked whether shareholders could affect eChoice’s view of remuneration, general manager Blake Buchanan said brokers should “absolutely not” be concerned.
Suspicion remains
Outsource Financial CEO Tanya Sale remained suspicious: “I’m not saying any of the aggregators on this panel are told what to say on the media side of these things, but they could be guided on what they can’t say because they’re parent company and owner are a bank”
However even independent aggregators had to maintain good relations with lenders, she noted: “I’m never going to go out and bag the hell out of our lending panel; our lending panel are our business partners.”
We'll be focusing on other points from MPA's Aggregator Roundtable, which you can watch for free online.
Bank-owned aggregators have defended their response to proposed commission changes during yesterday’s MPA Aggregators Roundtable.
NAB-owned Choice Aggregation Services, FAST and Plan Australia were present, as well as Connective (part owned by Macquarie), publicly owned eChoice and independently owned Specialist Finance Group and Outsource Financial.
Asked whether a bank-owned aggregator could balance broker needs with banks’ commitment to the Sedgwick Review proposals, FAST CEO Brendan Wright was adamant: “FAST happens to be an aggregator owned by a lender but we happen to be an aggregation business that needs to deliver on its value proposition to brokers.”
“The fact that we are owned by a bank that needs to line up behind Sedgwick – as do all the banks, and have committed to that – means that we need to make sure it’s done in light of the third party industry.”
Choice CEO Stephen Moore argued that NAB’s investment in its aggregators demonstrated its commitment to the channel and that bank-broker cooperation in the ongoing combined industry forum show “we have the same vested interested and that is the success of the industry.”
Anja Pannek, Plan’s CEO, was part of the Challenger team that originally acquired the aggregators before its sale to NAB. Bank-ownership brought with it the potential to influence policy, she urged: “we’ve got a direct voice to one of the largest financial institutions in Australia…what my team is able to do is connect the sentiments of our members with our shareholders”
Challenges of part-ownership
Connective is part-owned by Macquarie Bank, but director Mark Haron insisted it had no effect on Connective’s approach to broker remuneration: “from the outset, we made it clear to Macquarie Bank that this ownership would not get them one iota more loans unless they get out there and earn it.”
Haron echoed Moore’s point about investment: “the investment by banks into mortgage broking and aggregation sends us a very important message that they actually see the value in the industry and are getting behind it.”
Asked whether shareholders could affect eChoice’s view of remuneration, general manager Blake Buchanan said brokers should “absolutely not” be concerned.
Suspicion remains
Outsource Financial CEO Tanya Sale remained suspicious: “I’m not saying any of the aggregators on this panel are told what to say on the media side of these things, but they could be guided on what they can’t say because they’re parent company and owner are a bank”
However even independent aggregators had to maintain good relations with lenders, she noted: “I’m never going to go out and bag the hell out of our lending panel; our lending panel are our business partners.”
We'll be focusing on other points from MPA's Aggregator Roundtable, which you can watch for free online.
