Previous News Items
The 30% commission cuts of 2008 made life more difficult for everyone - but particularly for aggregators, according to UK bound GM for broker platforms at Advantedge Steve Weston.
"Simply, if you looked at the profitability of the aggregators then it's going to be hard for them to remain viable with those lower revenues," Weston told the MortgageMix.
The upshot of this, the industry stalwart predicted, is that it is going to make life 'really difficult' for brokers.
"Because now more than ever, brokers need aggregators in their corner," he added
"Ninety per cent of brokers in Australia are one or two person operators who work from home or a single office. They haven't got people to bounce ideas off and help them improve their business, and that will more and more become the role of the aggregator," Weston said.
But he warned that while aggregator's will want to invest more in their broker platforms, such investment is costly and the commission cuts have seen aggregators profits 'going backwards'.
Weston is scheduled to finish his current role with Advantage at the end of March.
He will take up the post of MD of retail lending for the Barclays UK business; responsible for mortgages, consumer lending and broker distribution.
Speaking earlier about the move, he said it presented an excellent professional opportunity.
Shock, respect as Weston departs - The online chatter is already buzzing as the sudden news of Steven Weston's move to Barclays Bank in the UK reverberates across the industry's media channels.
Good brokers will leverage NCCP - Steve Weston - The NCCP regulation has changed the market forever and if brokers don't adapt to these changes one of two things will happen, Advantedge's Steve Weston has said. They will go broke, or end up doing more work for the same amount of income.
Did you like this article?
Subscribe to the MortgageMix to receive our Newsletter and weekly News-Wrap
|Phone (02) 9939 8771|