Connective gross total settlements hits $93.8bn

Connective reported gross total settlements across residential, commercial and asset finance grew to $93.8 billion, with its brokers lodging $106.01 billion in residential home loan applications and $80.1 billion in total residential settlements last year.

According to Connective, residential settlements continued to rise over 2022 despite slowing mortgage demand in the second half of the year and the consecutive rate hikes by the Reserve Bank of Australia (RBA).

For commercial lending, the aggregator reported 20 per cent growth in commercial settlements for 2022, totalling $9.8 billion. Connective stated June 2022 was its strongest performing month for commercial members, reaching just under $1 billion in settlements, a 53 per cent increase on the same period in 2021.

Connective’s asset finance broker member community grew by 18 per cent in 2022, now sitting at 1,187 members, with national asset finance settlements reaching $3.3 billion (up 32 per cent) for the calendar year.

The aggregator expects settlement growth from asset finance members to surpass $4.1 billion in 2023.

Connective CEO Glenn Lees stated the success was driven by brokers “deepening client relationships” while being ready and able to support during the year.

“We’re really proud to have been able to support our brokers in achieving several remarkable consecutive years of growth.

“Based on the performance of our members in 2022, we’re confident about the opportunity 2023 presents – although the market has shifted, brokers continue to play an increasingly vital role in supporting borrowers to navigate a complex market,” Mr Lees said.

“We’re seeing a combination of more high performing commercial brokers choosing Connective along with more of our existing brokers expanding their offering and expertise into commercial broking,” Mr Lees said of the commercial results.

“Finally, the key enabler for Connective in supporting our members achieve these stunning results has been the fantastic Connective team.

“Our investment in people has continued, with our team growing by almost 15 per cent last year to a total of 200. We will continue to invest in our people and platforms to ensure that our members get the support they need and deserve,” Mr Lees concluded.

Fixed-rate cliff puts client retention at risk

Last month (February 2023) Connective reminded brokers to leverage digital marketing capabilities as roughly $350 billion in fixed rate loans are set to expire this year.

The aggregator anticipates 2023 will be a “historic year” of refinancing, presenting a valuable opportunity for proactive brokers.

[RELATED: Client retention at risk as fixed rates expire, Connective warns] 

Written by Adrian Suljanovic

Last Updated: 29 March 2023

Published: 30 March 2023