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Data migration and IT issues present the biggest barrier for brokers who want to switch aggregators, according to Australian Broker sister publication MPA’s 2013 Brokers on Aggregators survey,
While very few of this year’s respondents expected to leave their aggregator anytime soon, a small number of comments suggested that certain brokers were unlikely to leave, not because they were happy with the service received, but because the barriers to leaving were too great.
So what’s stopping them? When asked the question ‘if you were to change aggregators today, what would be the biggest obstacle to you leaving?’, the top three responses by quite a margin were data migration/IT issues (30.5% of responses), contractual obligations (24.5%) and clawbacks/trail issues (20%).
Interestingly, a few comments suggested that one option that was not provided as part of this year’s survey – difficulties in gaining reaccreditation with a new aggregator’s lending panel – was also proving to be a significant barrier to switching.
Main barrier to leaving:
|
Clawbacks/trail issues |
20% |
|
Contractual obligations |
24.5% |
|
Data migration/IT issues |
30.5% |
|
Licensing issues |
8.5% |
|
Loss of back-office services |
7% |
|
Loss of marketing services |
6% |
|
Upfront commission issues |
3.5% |
