Gone are the days where commission is the main reason for brokers looking to change aggregators. With rapid advances in technology The MPA Brokers on Aggregators survey 2016 showed poor IT and CRM support being the highest reasons to change aggregators (36%).
According to the survey, the proportion of people considering leaving their current aggregator is increasing but the majority of brokers are still unlikely to change. There is so much more on offer to brokers now than previously which may reflect the increased shift in brokers considering leaving aggregators.
The first step to take is spending time reading and understanding your current agreement. Most contracts involve a 30 day term for release period which can slow down the process of switching over, so you should select an aggregator that will support you through this time. You should also consider the time it will take to complete new lender accreditations and wait for lender approval which could also take weeks. Planning the right time to migrate as well as having an action plan in place ahead of time is integral to a smooth migration. Sure business will slow down temporarily and it might seem like precious money being lost but like any change in life, it takes time, effort and may be a little uncomfortable through the teething stages. You need to weigh up if you are motivated enough to endure the change and if it will optimise client outcomes enough in the long run to make the switch.
Secondly you need to do your own research comparing different features on offer to find the best overall package available to suit your business. Choosing commission splits that suit you are still as important as they were ten years ago but with advances in technology brokers now have a lot more to consider alongside commission. The latest advances in software technology such as improved marketing capacity, lead generation and more efficient CRM platforms should be enough to make any broker start contemplating if their current aggregator is really meeting the demands of their business, or if the change is worth the time and sweat for better outcomes. IT and compliance support, quality of BDM and customer service may also be influencing factors to think about.
The latest MPA survey showed that the top three obstacles to brokers leaving were:
- Data migration issues
- Clawbacks/trail issues
- Contractual obligations
These issues seem to be enough to deter most brokers from actually committing to any changes. Data migration is still an issue but there have been advances in software platforms which have the ability to capture and transfer most critical data resulting in minimal data loss. Depending on the agreement there may also be trail loss complications associated with changing aggregators making it harder for some brokers to break away. Brokers need to determine what their motivations are, their current business position and if they have enough cash flow to survive without their trail income for a substantial amount of time.
In the end it all comes down to your individual business and what you really need to grow and work as efficiently as you can. If your current system is working fine or you aren’t in a financial position to change then there’s no need to change a thing. On the other hand if you are struggling with constant inefficiencies which are out of your power such as data dropout or poor customer service, or you feel like you’re ready to grow and need more leads, then changing aggregators is definitely worth looking into.
Disclaimer: The information provided in this article is not legal or financial advice. It has been prepared without taking into account your objectives, situation or needs. Before acting on this information, you should consider the appropriateness of the recommendations, having regard to your own objectives, situation and needs. We encourage you to consult a professional before acting on any suggestions provided in this article or on this website.