Speakers.

Like sharks circling schools of fish, the feeding frenzy of broking group mergers, acquisitions and consolidations are leaving brokers with fewer options and a feeling of increased insignificance in the ever-growing mass.

These predator-like groups are headed up by leaders whose only two mandates are getting the most out of the masses for shareholder returns.

Conformity, uniformity and control become the order of the day and whilst this might suit the unimaginative, an ever-growing cohort of brokers are choosing to avoid these predators in favour of a better outcome.

A completely contrarian mindset lies in the Purple Circle aggregation methodology. Here, brokers belong to a steering committee which provides direction and advice to the company leaders. The leaders’ mandates are ‘to enable and empower’.

Not only this, but brokers can also earn shares in Purple Circle upon hitting milestones, meaning they participate in all the upsides that come with owning their own aggregation business.

The ‘2020 Boutique broking group of the Year’ is experiencing unprecedented growth in broker numbers, with almost 2 brokers a week currently joining the movement.

Purple Circle CEO, Michael Stephens says “Never before in the history of mortgage broking have we experienced a similar and enduring season of uncertainty and confusion. Brokers find themselves treated as a commodity and pawn in a much bigger game, one in which they receive no benefit.

Purple Circle gives the balance of power back to its brokers, enabling them to be masters of their own destiny. Many of the brokers contacting us just want some control back and to create a better future for themselves in the process.”

It is true, we are a pretty independent bunch. The very nature of our industry forces us to be this way.

But it doesn’t matter how independent or resilient you are, sometimes things can become a bit much and you just need a shoulder to lean on. Someone who understands, and even better, someone who can help.

Over the past year, we have all gained a far better sense of self than ever before, and we have learned that it is OK to be vulnerable and to seek support from our community.

Imagine a community of finance brokers coming together for this reason. Supporting one another through tough times, and celebrating each other through good times. Who are genuinely interested and concerned for their fellow broker. Why? Because that is just who they are.

From the moment you join Purple Circle, you can feel the sense of community… It comes in the form of a welcome phone call from a fellow broker in your area, a small gift just because you chose us, a genuine interest in you and your well-being.

Our brokers are the cornerstone of everything we do. Every decision we make. We take counsel from our brokers and then reward them with shares.

Australia’s reigning best Boutique broking group was independently awarded that title for a reason. A part of which lies in our culture. Our belief system. Our drivers. All of which will become yours too, when you join us.

There has been a quiet revolution building in the mortgage broking space…

A game-changing broking group has been gaining momentum over the past 3 years and now the well-kept secret is finally out with independent judges voting it the best in Australia.

The long-standing monopoly held by several broking groups is being seriously threatened by Australian Broker Awards newly crowned ‘Boutique broking group of the Year’ (less than 500 brokers) – Purple Circle Financial Services.

In a little more than 3 years, Purple Circle has risen from a start-up with a difference into Australia’s most exciting group in the broking group space.

Mortgage Brokers have grown tired of being placed at the bottom of the food-chain by high-mileage broking groups more interested in building lending distribution capacities for their shareholders and institutional owners than they are in looking after their brokers.

Purple Circle has turned this dated concept on its head by placing brokers at the very top of the food chain and making them shareholders in this unique company.

Broker-owned means broker-driven.

Have a voice and have a say… At Purple Circle, we take a co-operative approach to building best practice. Our Members have a strong say in the strategic direction of the company which allows us to not only provide what Brokers need to succeed in business but also what they want!

‘We created Purple Circle as a way to give back to brokers’, Greg Pennells says. ‘Traditionally the only people who enjoy the fruits of an aggregation group are broking group heads and institutional owners. These fruits can be in the form of profits and/or capital gains.’

‘The time is right for this wealth to make its way back to the very people responsible for the success of the groups – the brokers themselves’ says Greg.

Purple Circle is the brainchild and latest venture for Greg Pennells, co-founder of Choice Aggregation Services and Choice Home Loans.

To continue to provide its member network with innovative lending solutions Purple Circle has partnered with an exciting new lender.

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Drives for economies of scale by mortgage broking groups may not deliver as many benefits to brokers as these groups claim.

Boutique independent broking groups may in fact be better suited to serve brokers and further assist with keeping the market on an even keel due to in part our strong collaborative approach and robust service propositions.

Being bigger isn’t necessarily being better.

There’s only so much efficiency you can get from economies of scale through size and this does not necessarily translate to a better service proposition. I’d like to think the boutique independent broking groups provide a better service proposition as we’re more attuned with what brokers require for their business, with this translating to attracting a high calibre of broker.

These big businesses aren’t team-spirited co-operatives anymore because of size and due to many of them being either bank or institution owned.

As boutique independent broking groups, we do not deal with thousands of brokers and as such along with strong collaboration we pay greater attention to broker needs with a core value proposition being ‘quality rather than quantity’.

We do things a little differently – we believe we are more hands on and intimate with regards to understanding our business partners’ needs. Our value proposition as a boutique is not just on the aggregation; it’s always been centred around the full service – collaboration, value adding and helping brokers build better businesses and create additional revenue. As we know, a more intimate broking group-broker relationship can provide a broker with the right tools and a greater structured hands-on guidance to grow. Whether it is tailored offerings for single writers, small brokering groups through large brokering groups, boutiques cater better.

Let’s face it, a lot of broking groups have very high mileage on their clocks.

Their engines are out-dated legacy models using too much fuel and under-powered by today’s standards.
Despite this their many owners over the years squeezed as much out of them as they possibly could, before passing them on like an unwanted gift to the next owner.
The paintwork is chipped and their tyres have no tread. But still, they keep on going…

Now that the elections are over and we’re all breathing a bit easier, the time is right to treat yourself to a new and improved model.

Seriously though, some new broking groups out there are worth a closer look.

Today’s best businesses are platforms for their members to contribute to and to learn from, is in stark contrast to the old fashioned 90’s autocracies. In those models, absolute power was held by only the chosen few.
Platform style businesses give up the old overarching control, instead allowing everyone full collaboration, inclusion and transparency. They encourage members to not ‘hoard’ their good ideas, but throw them ‘in the pot’ for all to enjoy and learn from.

‘Boutique broking group of the Year’ finalist 2018 and 2019 and ‘Innovator of the Year’ finalist 2019, Purple Circle Financial Services represents a new breed of broking group.

Giving it’s members shares and living by an ethos of inclusion and mutuality, ‘Empowering Brokers’ is at the heart and soul of the company.
Believing every broker member has the ability to be a leader, PCFS brokers are involved in important company decisions like lender panel, software platforms, CRM’s, Cross-selling and up-selling integrations etc.
Only 2 and a half years old, Purple Circle recently went past the magical $500 million in settled loans, growing it’s member numbers month on month, completely bucking the recent trend being experienced by most broking groups.

This open platform methodology is attracting brokers who have grown tired of the old ways of being treated like a number, and who are ready to embrace the new world of broking in post-Royal Commission Australia.

If you would like to know more, please contact the team.

Time and time again, history has shown us that when the going gets tough, an institution will always deflect blame and think nothing of removing itself from the ‘problem’. We saw it play out in the financial planning arena, and now the exact same thing is being repeated in Finance Broking.

By virtue of the Royal Commission’s highlighting of banks’ shortfalls, and despite the MFAA providing indisputable proof to the contrary, the blame game has been aimed squarely at mortgage brokers.

Now that a convenient ‘fall guy’ has been identified, the ‘problem’ is being dealt with in a ‘Clean and timely’ manner.

For the mortgage broker who has entrusted their business to an institutional owned broking group, one thing is certain about your future; uncertainty.

As a result of this uncertainty, an ever-increasing band of brokers have gathered together and shouted ‘ENOUGH IS ENOUGH’. They are now collectively taking control of their future.

If the polar opposite of being owned by an institution is being owned by it’s members, then a mutually-owned broking group is the solution.

Boasting an unrivalled sense of camaraderie and belonging, Purple Circle Financial Services operates on an ethos of mutuality;

• No institutional ownership
• Members are owners and shareholders
• Brokers are empowered to achieve their goals
• With shared values, members are part of a society in which everybody contributes
• A Broker Steering Committee represents all broker members at Board level
• The Leadership team is made up of industry legends and high-achievers
• Profits are allocated to shareholder members

The company’s mission statement includes the following;

• Decisions are based on what is best for the members
• The benefit for members shapes all decisions
• Long term focus on security and safety for members

Mutuality is insurance in it’s highest form

John Bainbridge English author and activist

Today, all brokers work hard to establish a good name and reputation to ensure they receive regular referrals and repeat business. Without this, the business is going to go south pretty quickly.

There are lots of good reasons to be a Finance Broker, one of which is the fact that when you are ready to retire or change careers, there is a fairly predictable formula used to calculate the value of your business. There is some certainty in what you can expect to receive (Royal Commission outcomes not withstanding!).

Depending on how and how often you can demonstrate communication with your clients (trail book) can also deliver a better or worse payday for you, as any purchaser of your business will look to take over this relationship. Also, they may pay a bit more for goodwill if there is the guarantee of new business coming in after the sale.

Now, if you compare the formula used to determine the value of a single broking business against the formula used to determine the value of an broking group’s business, you will see a huge discrepancy in the numbers used:

A single broking business could usually expect to receive between 1-2 times the annual trail book income, as well as a bit extra for goodwill, whereas an broking group can receive anything up to a 20 times multiple or more of the revenue of the business.

Why is this so?

There could be many reasons. Some of which are:

1. The purchaser of an aggregation business could look at the potential to distribute their own products through the broker network, thus increasing profitability;
2. The broking group could be on a growth trajectory, meaning the purchase calculation could be based on the future potential;
3. The purchaser may own a similar business, therefore the ability to consolidate duplicated costs will have an instant positive impact of the bottom line;

and so on…

The good news is, there is now a way for broking businesses to seriously multiply the value of their business.

How… by owning a piece of your own broking group!

Purple Circle Financial Services allows brokers to earn shares in the aggregation company, simply by doing what you do, writing loans.

You will still build up the value in your own business as you always have, but now you will also own shares in your own broking group.

This has been described by many brokers who have seized on the opportunity as a ‘no-brainer’.

Once earned, the shares are yours for life, no handcuffs or unfair conditions.

As with all things good, this amazing opportunity is strictly limited and is offered on a first-come, first-in basis.

If you would like to know more, please contact the team.