Aggregator — What It Means and How It Works

An aggregator is the organisation that sits between finance brokers and lenders, providing the infrastructure that makes broking possible. If you work with a broker to arrange a home loan, business loan or asset finance deal, the broker almost certainly operates under an aggregator. Understanding this relationship helps you see how your broker accesses products, gets paid, and stays compliant.

What does an aggregator do?

An aggregator negotiates and maintains relationships with a panel of lenders on behalf of its broker network. Instead of each broker individually approaching dozens of banks, non-bank lenders and specialist funders, the aggregator establishes volume-based agreements that give its brokers access to a wide range of credit products through a single platform.

Beyond lender access, aggregators provide the operational backbone for broking businesses. Their core functions include:

• Lender panel management — curating and maintaining accreditation with lenders across home loans, commercial lending, equipment finance and personal lending.
• Technology platforms — CRM systems, application lodgement software, comparison tools and reporting dashboards that brokers use to manage clients and submit deals.
• Compliance support — file auditing, quality assurance, policy templates and guidance on responsible lending obligations under the NCCP Act.
• Commission processing — receiving lender commissions and distributing them to brokers, handling reconciliation, GST and reporting.
• Training and professional development — accreditation courses, CPD programs and industry updates to keep brokers current with regulatory changes and lender policy shifts.

How the aggregator model works

The typical workflow looks like this:

1. A broker joins an aggregator and signs a membership agreement covering fees, commission splits, compliance obligations and exit terms.
2. The aggregator grants the broker access to its lender panel and technology platform.
3. When a client needs finance, the broker uses the aggregator's tools to compare products, prepare the application and lodge it with the chosen lender.
4. On settlement, the lender pays upfront and trail commission to the aggregator, which takes its agreed share and passes the remainder to the broker.
5. The aggregator monitors file quality, conducts audits and provides ongoing compliance oversight.

This model is a defining feature of the Australian broking industry. The major aggregators — including AFG, Connective, Finsure, Loan Market, PLAN and Mortgage Choice — collectively support thousands of brokers and process billions of dollars in lending each year.

Why brokers use aggregators

For most brokers, building direct lender relationships with 30 or 40 funders, plus maintaining the technology, compliance frameworks and accreditation requirements that come with each, is not practical. An aggregator bundles all of this into a single relationship.

The key benefits are:

• Breadth of product access — a well-stocked panel means the broker can match a wider range of borrower needs, from straightforward home loans to complex commercial or chattel mortgage deals.
• Compliance infrastructure — aggregators help brokers meet their best interests duty and responsible lending obligations through structured file review and audit programs.
• Efficiency — a single platform for lodgement, tracking and reporting saves time compared to using each lender's own portal.
• Negotiating power — aggregated volume gives brokers access to better commission structures than they could negotiate individually.

Costs and commercial terms

Aggregators are paid through a share of the commissions that lenders pay on settled loans. The most common structures are:

• Commission split — the aggregator retains a percentage of upfront and trail commission. Splits vary but a broker might receive 80–90% of upfront and 80–90% of trail, with the aggregator keeping the balance.
• Platform or membership fees — some aggregators charge a monthly or annual fee for technology and services, sometimes in exchange for a more favourable commission split.
• Franchise fees — franchise-model aggregators may charge licensing fees, marketing contributions and other franchise costs.

When comparing aggregators, look at the net earnings on a typical deal — not just the headline split. Factor in platform fees, marketing levies, insurance costs and any volume-based thresholds that affect your split.

Licensing and compliance

Aggregators play a critical role in the compliance chain. Some brokers hold their own Australian Credit Licence, while others operate as credit representatives under the aggregator's ACL. The distinction matters:

• Own-ACL brokers are directly responsible for their own compliance, but the aggregator still provides support, file auditing and lender access.
• Credit representatives operate under the aggregator's licence. The aggregator bears ultimate responsibility for the representative's conduct, which means tighter oversight and potentially less operational flexibility.

Regardless of structure, ASIC expects both the aggregator and the broker to maintain adequate compliance systems. Aggregators must ensure their brokers are properly trained, accredited and meeting their disclosure and responsible lending obligations.

How to choose an aggregator

Selecting an aggregator is one of the most important business decisions a broker makes. Key criteria to evaluate:

• Panel size and relevance — does the panel include the lenders and product types your clients need? A large panel is only useful if it covers your market (residential, commercial, asset finance).
• Technology quality — is the platform intuitive, reliable and well-integrated with lender systems? Poor tech slows down lodgement and creates compliance gaps.
• Commission structure — what are the actual splits, and are there fees or levies that reduce your net income?
• Compliance support — how rigorous is the audit program? What training and guidance is provided?
• Contract terms — review exit notice periods, restraint clauses, data ownership and what happens to your trail book if you leave.
• Culture and support — do they provide mentoring, BDM support and a community of peers? This matters especially for newer brokers building their business.

Before signing, ask for a sample net-earnings statement on a typical deal, and speak to brokers already in the network about their experience.

Switching aggregators

Brokers can and do switch aggregators, but the process requires careful planning. Key considerations include:

• Trail book portability — will your existing trail commission transfer with you, or does it stay with the old aggregator? This is often the single biggest financial issue.
• Client data and files — confirm who owns client records and how they will be transferred.
• Lender accreditation — you may need to re-accredit with some lenders through the new aggregator.
• Exit notice periods — most agreements require 30–90 days' notice.
• Restraint clauses — check for non-compete or non-solicitation provisions.

Plan the transition carefully to avoid disruption to clients and pipeline deals.

FAQ

Key takeaways

An aggregator is the backbone of a broker's business, providing lender access, technology, compliance support and commission processing. For borrowers, the aggregator's panel determines the range of products your broker can offer. For brokers, choosing the right aggregator affects earnings, compliance support and long-term business flexibility.

Further reading

• MFAA — Choosing an aggregator
• ASIC — Credit licensing obligations
• FBAA — Broker resources

This article is general information only and is not legal, tax or financial advice.