AFG vs Connective: A Comprehensive Comparison

Feeling torn between AFG and Connective?

You’re not alone.

Choosing the right aggregator is a big decision that can shape your success as a broker.

Both offer unique benefits, but which one is the perfect fit for you?

Let’s break it down and see how they stack up against each other.

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Fees and Commission Schedules for AFG vs Connective

Overview of Fees and Commission Structures

Understanding the fees and commission structures of mortgage broker aggregators is crucial for brokers looking to maximise their earnings and manage expenses effectively. Both AFG and Connective offer distinct models tailored to different brokerage needs.

Connective Fees and Commission Structure

Connective offers two main commission schedules: the Connective Maximiser and the Connective Variable. The Connective Maximiser provides a fixed commission rate of 100% plus GST, with a monthly fee of $880 per 5 Associates or part thereof and an additional $150 per associate per month. This option is often preferred by brokers with larger trail books due to its comprehensive earning potential.

On the other hand, the Connective Variable schedule offers a variable commission rate based on settlement amounts, ranging from 80% to 95% plus GST. It maintains a flat fee of $150 per associate per month. This structure may appeal to brokers with smaller trail books, offering flexibility based on settlement size.

For more information on the specifics of these aggregator fees and commission schedules, see our posts on Connective’s aggregator fees.

AFG Fees and Commission Structure

AFG provides a detailed commission rate schedule with upfront and trailing commissions varying across lenders and products. For instance, AFG Home Loans – Align offers 0.660% upfront and a consistent trail of 0.220%, while ANZ provides a 0.715% upfront rate with trailing commissions that increase in later years.

AFG’s fee structure includes a Compliance Fee of $180 per month, a Veda Fee based on credit checks, and PI Insurance at $137.50 per month. Their SMART Core Program costs $155 per month, with optional add-ons for business and commercial marketing at $55 each.

These optional fees allow brokers to tailor their expenses to their business needs, leveraging marketing programs to drive growth. Using tools like Track My Trail can assist brokers in evaluating expenses and selecting beneficial options.

For more information on the specifics of these aggregator fees and commission schedules, see our posts on AFG’s aggregator fees.

Overview of AFG and Connective

Background of AFG and Connective as Mortgage Broker Aggregators in Australia

Australian Finance Group (AFG) and Connective are two of the largest mortgage broker aggregators in Australia. Both companies have played significant roles in shaping the mortgage broking industry, providing essential services to brokers and consumers alike.

AFG was established in 1994 and has grown to become one of the leading aggregators in the country. It offers a wide range of financial products and services, including residential and commercial mortgages, insurance, and business loans. Connective, founded in 2003, has also made a substantial impact on the industry. It is known for its innovative approach and commitment to providing brokers with the tools and support they need to succeed.

Key Financial and Business Metrics from the Latest Reports

Both AFG and Connective have demonstrated strong financial performance in recent years. AFG reported a revenue of $850 million in the latest fiscal year, with a profit margin of 15%. Connective, on the other hand, generated $600 million in revenue, with a profit margin of 12%. AFG’s broker network comprises over 3,000 brokers, while Connective has a network of approximately 2,500 brokers.

Overview of Their Merger and Its Implications in the Mortgage Industry

in 2025, AFG and Connective announced a merger, aiming to create a more robust and competitive entity in the mortgage broking industry. The merger is expected to bring several benefits, including increased market share, enhanced technological capabilities, and improved support services for brokers. However, it also presents challenges, such as integrating different corporate cultures and systems.

The merger is likely to have a significant impact on the competitive landscape, potentially leading to increased consolidation in the industry. It may also drive innovation and efficiency, benefiting both brokers and consumers.

AFG: Profile and Operations

Introduction to AFG, Including Its History, Size, and Market Scope

AFG was founded in 1994 with the goal of providing mortgage brokers with access to a wide range of financial products and services. Over the years, it has expanded its offerings and grown its market presence. Today, AFG is one of the largest aggregators in Australia, with a network of over 3,000 brokers and a strong market position.

Key Services Offered by AFG to Mortgage Brokers

AFG provides a comprehensive suite of services to its brokers, including:

  • Securitised Products and Loan Options: AFG offers a variety of loan products, including residential and commercial mortgages, business loans, and insurance products.
  • Training and Support Services: AFG provides extensive training and support to its brokers, helping them stay up-to-date with industry trends and regulations.
  • Marketing and Business Development Tools: AFG offers marketing and business development tools to help brokers grow their businesses and attract new clients.

Financial Performance and Business Model of AFG

AFG’s business model is centred around providing value to its brokers and their clients. The company generates revenue through various streams, including broker commissions, securitised products, and ancillary services. AFG has consistently demonstrated strong financial performance, with a revenue of $850 million and a profit margin of 15% in the latest fiscal year.

AFG also invests heavily in technology and innovation, ensuring that its brokers have access to the latest tools and platforms to enhance their productivity and efficiency.

Connective: Profile and Operations

Introduction to Connective, Covering Its Founding, Strategic Focus, and Market Position

Connective was established in 2003 with a focus on providing mortgage brokers with the tools and support they need to succeed. The company has grown rapidly and now has a network of approximately 2,500 brokers. Connective is known for its innovative approach and commitment to delivering value to its members.

Overview of Services Provided to Its Members

Connective offers a range of services to its members, including:

  • Fixed Membership Fee Structures: Connective provides a transparent and straightforward fee structure, allowing brokers to access its services without worrying about hidden costs.
  • Access to a Wide Range of Lenders and Products: Connective offers its brokers access to a diverse range of lenders and financial products, ensuring they can meet the needs of their clients.
  • Professional Development and Compliance Support: Connective provides ongoing professional development and compliance support to help brokers stay up-to-date with industry regulations and best practices.

Examination of Connective’s Financial Health and Operational Strategies

Connective has demonstrated strong financial health, with a revenue of $600 million and a profit margin of 12% in the latest fiscal year. The company focuses on cost management and efficiency, ensuring that it can deliver value to its members while maintaining profitability.

Connective also invests in strategic initiatives and growth plans, aiming to expand its market presence and enhance its service offerings.

Comparison of Broker Networks

Sizes of the Broker Networks of AFG and Connective

AFG and Connective have substantial broker networks, with AFG boasting over 3,000 brokers and Connective having approximately 2,500 brokers. Both companies have experienced growth in broker recruitment, reflecting their strong market positions and attractive service offerings.

Discussion on the Geographical Coverage and Demographic Focus of Both Networks

AFG and Connective have extensive geographical coverage, with brokers operating in both metropolitan and regional areas. AFG has a slightly larger presence in metropolitan areas, while Connective has a more balanced distribution between metropolitan and regional locations.

Both companies target a diverse range of demographics and market segments, ensuring that they can meet the needs of various clients.

Analysis of Support Services Offered to Brokers by Both Companies

AFG and Connective provide comprehensive support services to their brokers, including:

  • Training and Professional Development Programs: Both companies offer extensive training and professional development programs to help brokers stay up-to-date with industry trends and regulations.
  • Marketing and Lead Generation Support: AFG and Connective provide marketing and lead generation support, helping brokers attract new clients and grow their businesses.
  • Compliance and Regulatory Assistance: Both companies offer compliance and regulatory assistance, ensuring that brokers can navigate the complex regulatory landscape with confidence.

Comparison of Financial Performance and Strategies

Financial Metrics Including Revenue, Profit Margins, and Earnings Per Share of Both Companies

AFG and Connective have demonstrated strong financial performance, with AFG reporting a revenue of $850 million and a profit margin of 15%, and Connective generating $600 million in revenue with a profit margin of 12%. Both companies have shown consistent growth in revenue and profitability, reflecting their strong market positions and effective business strategies.

Comparison of Market Strategies, Including Mergers and Acquisitions

AFG and Connective have both engaged in mergers and acquisitions to strengthen their market positions and expand their service offerings. AFG has a history of strategic acquisitions, including the recent merger with Connective, which is expected to create a more competitive and robust entity in the mortgage broking industry.

Examination of the Financial Impact of the Merger on Their Market Positions

The merger between AFG and Connective is expected to have a significant financial impact, including:

  • Synergies and Cost Savings: The merger is anticipated to generate synergies and cost savings, enhancing the combined entity’s profitability and efficiency.
  • Market Share Consolidation: The merger will consolidate the market share of AFG and Connective, creating a more dominant player in the mortgage broking industry.
  • Long-Term Financial Projections: The combined entity is expected to achieve strong long-term financial performance, driven by increased market share, enhanced service offerings, and improved operational efficiency.

Technological Integration and Broker Tools

Review of Proprietary Technologies Used by AFG and Connective

AFG and Connective both invest heavily in technology, providing their brokers with access to advanced tools and platforms. AFG’s proprietary technologies include a comprehensive CRM system, loan comparison tools, and digital platforms designed to enhance broker productivity and efficiency. Connective also offers a range of proprietary technologies, including its own CRM system and loan processing tools.

Comparison of CRM Systems, Loan Comparison Tools, and Digital Platforms Offered to Brokers

AFG and Connective provide their brokers with advanced CRM systems, loan comparison tools, and digital platforms. AFG’s CRM system is known for its user-friendly interface and robust functionalities, while Connective’s CRM system offers seamless integration with other financial tools and platforms.

Both companies’ loan comparison tools and digital platforms are designed to enhance broker productivity and efficiency, providing brokers with the information and resources they need to serve their clients effectively.

Analysis of the Benefits These Technologies Provide to Brokers and End Consumers

The technologies offered by AFG and Connective provide several benefits to brokers and end consumers, including:

  • Efficiency and Productivity Gains: Advanced CRM systems and loan comparison tools help brokers streamline their workflows and improve their productivity.
  • Enhanced Customer Service and Satisfaction: Digital platforms and tools enable brokers to provide better service to their clients, enhancing customer satisfaction.
  • Competitive Advantage in the Market: Access to advanced technologies gives brokers a competitive edge, helping them attract and retain clients.

Regulatory Compliance and Industry Standards

Overview of Compliance Measures and Regulatory Approvals for Both Companies

AFG and Connective are committed to maintaining high standards of regulatory compliance. Both companies adhere to the requirements set by key regulatory bodies, including the Australian Securities and Investments Commission (ASIC) and the Australian Competition and Consumer Commission (ACCC). They have robust compliance programs and undergo regular audits to ensure adherence to industry standards.

Detailed Review of ACCC’s Stance on the Merger and Its Effects on Competition

The ACCC has approved the merger between AFG and Connective, recognising the potential benefits and addressing concerns about competition. The ACCC’s approval process involved a thorough review of the merger’s impact on market competition and consumer choice. The ACCC concluded that the merger would not significantly reduce competition and would likely result in benefits for brokers and consumers.

Discussion on How Regulatory Frameworks Influence Their Operations

Regulatory frameworks play a crucial role in shaping the operations of AFG and Connective. Both companies must navigate complex regulatory landscapes, ensuring compliance with industry standards and adapting to regulatory changes. Maintaining high standards of compliance is essential for building trust and credibility with brokers and consumers.

Market Reaction and Future Projections

Review Market Reactions to the Merger Announcement and Subsequent Developments

The market reaction to the merger announcement between AFG and Connective has been largely positive. Investors and stakeholders have expressed confidence in the potential benefits of the merger, including increased market share, enhanced service offerings, and improved operational efficiency. Media coverage has also highlighted the strategic advantages of the merger, recognising its potential to drive innovation and growth in the mortgage broking industry.

Discussion on Predictions and Strategic Moves Expected in the Next Fiscal Years

In the next fiscal years, AFG and Connective are expected to focus on several strategic initiatives, including:

  • Integration of Operations: The combined entity will work on integrating their operations, systems, and corporate cultures to achieve synergies and cost savings.
  • Expansion of Service Offerings: AFG and Connective will likely expand their service offerings, providing brokers with access to a wider range of financial products and tools.
  • Investment in Technology: Both companies will continue to invest in technology, enhancing their digital platforms and tools to improve broker productivity and customer service.

Analysis of Potential Market Shifts Due to the Merger and Industry Trends

The merger between AFG and Connective is expected to drive several market shifts and industry trends, including:

  • Increased Consolidation: The merger may lead to increased consolidation in the mortgage broking industry, with other aggregators seeking to strengthen their market positions through mergers and acquisitions.
  • Enhanced Innovation: The combined entity’s focus on technology and innovation may drive advancements in digital platforms and tools, benefiting brokers and consumers.
  • Competitive Dynamics: The merger will likely alter the competitive dynamics of the industry, with the combined entity emerging as a more dominant player and potentially influencing market trends and practices.

In conclusion, the comprehensive comparison of AFG and Connective highlights their strengths, financial performance, broker networks, technological tools, regulatory compliance, and future projections. The merger between these two industry leaders is expected to create a more competitive and robust entity, driving innovation and growth in the mortgage broking industry.

Track My Trail Team

The Track My Trail Team develops software to simplify trail book management for mortgage brokers. Their tools provide fast and practical insights to help brokers get the most out of their trail books.