AFG forges ahead on digital journey
IN Partnership with
Leading aggregator AFG will introduce new technology and products for its brokers and their clients in 2022. Head of distribution Chris Slater discusses the exciting opportunities ahead for brokers
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2021 WAS a momentous year for AFG.
The aggregator, which has over 3,000 brokers, recorded impressive results for Q1 FY22, with its brokers lodging $24.1bn in home loans, a $6bn rise on 2020.
AFG recently acquired asset aggregator Fintelligence and workflow management platform BrokerEngine. It is also working on an Australian-first banking app with Volt and Frollo.
The broker network has big plans for the year ahead.
“At AFG, we’re excited to deliver new technology, a new digital product and more opportunities for our brokers to diversify revenue in 2022,” says head of distribution Chris Slater.
“ ‘Speed to yes’ and on-the-ground support for our brokers are two things we are focusing on heavily in 2022, and we will continue to find ways to support our brokers to attract, serve and retain more customers.”
AFG’s founders saw an opportunity for mortgage brokers to provide a better solution for Australians’ finance needs. So, 26 years ago, they established the company and helped create an industry.
Today, we’re just as passionate about brokers. We believe in our community of brokers. Australians trust their brokers with their biggest assets, and, in turn, our brokers trust us with theirs.
When our brokers grow, we grow. Together, our brokers have built robust, secure and successful businesses. We’re proud of that legacy, and it’s also a big part of why we’re now one of Australia’s most secure and prosperous mortgage aggregators.
Find out more
“ ‘Speed to yes’ and
on-the-ground support for our brokers are two things we’re focusing on heavily in 2022. We will continue to find ways to support our brokers to attract, serve and retain more customers”
Chris Slater,
AFG
Technology revolution
Slater says AFG will be rolling out its new CRM platform across the network, including its latest version of Customer360.
“We will also be launching our new digital loan product, Sparc, which is exclusive to our brokers, along with our new mobile app called ‘Handl. by AFG’, which is powered by Volt Bank. It’s one of the most exciting initiatives the industry has seen in a long time.
“We will also be doing a lot of work on integrating our latest two acquisitions [BrokerEngine and Fintelligence] into the AFG family of companies, with some exciting things coming for our brokers off the back of those acquisitions.”
Slater says open banking will change the way customer data is gathered and consumed, providing many benefits to customers and AFG brokers.
“Things like easier collection of information and accuracy of that information allowing quicker applications and quicker decisions will be good for the industry.
“I think real-time [live] predictability of finance approval, or certainty of approval, will be one of the great benefits to come from open banking. Our brokers' trusted positions with their customers will be crucial as open banking rolls out, and AFG intends to be at the cutting edge of this.”
Slater says AFG has introduced tech tools to help brokers, including:
“Having a plan around resources in the business, managing workflow and setting your business up to bed down the growth from 2021 will be essential. It’s going to be another milestone year for the broking industry”
Chris Slater,
AFG
MFAA figures show brokers hit a record-high market share last year, writing 66.9% of all new residential loans.
“I think it will continue to rise for sure,” says Slater. “The broker proposition stepped up during COVID.
“We have thousands of small business operators across Australia who have always done a great job helping Australians find solutions when they need them, and they always step up.”
Technology has improved the overall customer experience, Slater says, but it still comes down to the broker's personal service and the choices they offer.
Broker market share
Highlights of AFG FY21 results
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extensive data analytics
a new Customer Portal
its award-winning automated marketing platform, SMART
an AI customer retention tool
The biggest unknown is how the markets will play out, Slater says.
“We are coming off the back of surging housing prices, low unemployment, record-low interest rates and some of the strongest government incentives the housing market has seen in my lifetime.
“Brokers were well placed to help customers during COVID, and I believe as borders open up in 2022, our brokers will be busier than ever.
“Having a plan around resources in the business, managing workflow and setting your business up to bed down the growth from 2021 will be essential. It’s going to be another milestone year for the broking industry.”
Busy year for brokers
When it comes to face-to-face communication, Slater says “the horse has bolted”.
“Our brokers have been very clear to us that one of the ways they could handle the surge in opportunities in 2021 was by using technology that allowed non-face-to-face.
“Their very strong view, which I agree with, is they will never return to the ‘old ways’ of all-face-to-face. It will be a combination of both.”
Brokers’ interactions with each other and lender BDMs will still involve plenty of face-to-face meetings, “as a huge part of what we do is relationship-based”.
How COVID has changed broker communication
Reported NPAT of
$51.3m
underlying NPAT of $49.6m
AFG Securities settlements of
in line with FY20
$1.35bn
White label AFG Home Loan settlements grew
to $2.1bn
18%
Residential settlements of
a rise of 28%
$43.63bn
Combined residential and commercial loan book of
up 8% on FY20
$175.7bn
1 H2 FY21 settlements up 35% compared to H2 FY20. Loan book now at $3.4bn – a 17% increase on 30 June 2020
1
“Technology has enhanced the process of assisting with onboarding customers, product choice, information required and document gathering, and lodging and settling loans.
“Our turnaround-time tracking tool has enabled brokers to manage deal flow and match customer expectations with lender performance a lot better. This has meant a faster time to yes, increasing our brokers' productivity.
“Valuations of brokers’ businesses are at all-time highs, and customer numbers are at all-time highs – it’s a great time to be a broker.”
Slater says the biggest change since 2020 has been the maturing of the sector and the surge in Australians using a broker.
“The last 18 months have seen many of our brokers' businesses double in size, which means the support they are looking for has changed. They are incredibly busy, time-poor, and are challenged to attract the staff they need, so solving those pain points has been a massive focus.”
He says the long-term sustainability of aggregators and brokers is also something AFG has had to consider as new players emerge.
The changing role of aggregators
“Being our brokers' advocates is vital. They are small business operators with little time to engage at a regulatory or political level; that is where we come in. We pulled out all stops to get the right outcome from the royal commission, and we will do the same whenever our brokers need us to be their voice.”
Aggregators “have to continue to evolve”, Slater says.
“Competition forces us to do more with less, and playing in our space will require us to invest and think outside the box continually.
“With open banking, digital banks and digital brokers emerging, I see our broker businesses playing a pivotal role in society as trusted advisers.”
Broker market share at record high
More than
home loans are now written by mortgage brokers
2 in 3
Between July and September 2021, mortgage brokers wrote
of all new residential home loans
66.9%
Market share is a significant
percentage points higher than previous record of 60.1% in September 2020 quarter
6.8
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“Having a plan around resources in the business, managing workflow and setting your business up to bed down the growth from 2021 will be essential. It’s going to be another milestone year for the broking industry”
Chris Slater,
AFG
“Technology has enhanced the process of assisting with onboarding customers, product choice, information required and document gathering, and lodging and settling loans.
“Our turnaround-time tracking tool has enabled brokers to manage deal flow and match customer expectations with lender performance a lot better. This has meant a faster time to yes, increasing our brokers' productivity.
“Valuations of brokers’ businesses are at all-time highs, and customer numbers are at all-time highs – it’s a great time to be a broker.”
More
AFG forges ahead on digital journey
IN Partnership with
Leading aggregator AFG will introduce new technology and products for its brokers and their clients in 2022. Head of distribution Chris Slater discusses the exciting opportunities ahead for brokers
Leading aggregator AFG will introduce new technology and products for its brokers and their clients in 2022. Head of distribution Chris Slater discusses the exciting opportunities ahead for brokers
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TV
Updates
Features
Resources
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