Aussie Home Loans has revealed its new franchise model, with the pathway set to reshape how trail, leads, and brands are treated inside its retail network.
Aussie Home Loans has outlined plans for a new franchise pathway, Aussie Modular, which introduces a banded trail structure offering up to 90 per cent pass‑through on self‑generated business.
Aussie said Modular would sit alongside its three existing franchise models as a fourth option aimed at operators who actively build their own business.
It described the concept as a way of recognising sustainable, self‑driven growth while continuing to support long‑term business building.
Brad Cramb, CEO of distribution at Aussie, said the move reflected a steady evolution of the group’s strategy.
“It’s just been a story of constant evolution. We’re always looking to find new ways to create value for customers, for brokers, and ultimately for the industry,” he said.
“This next phase with modular is not just about category growth, this is about differentiation and how brokers can build businesses that stand out in what is becoming a cluttered marketplace for broking.”
Cramb said that after rolling out Find, Buy, Own and AI capabilities, Modular was intended to pull those threads together into a unified commercial proposition.
“What modular is, is the capstone to that. This is about bringing that broader evolution together with something that’s commercially meaningful for business owners,” he said.
Indexed trail bands and higher pass‑through
A key feature of the proposed model is the treatment of self‑generated trail via an indexed, banded structure.
Aussie said that different portions of an operator’s portfolio would sit within defined bands, with each band attracting its own pass‑through setting.
Within that framework, Modular would introduce up to 90 per cent pass‑through on self‑generated business.
Cramb said that if a franchisee generated the customer relationship, then they should be rewarded.
“If you generate the customer, you build that relationship, you’ve carried the acquisition cost, well you should be rewarded for that value,” he said.
“This is not unusual in the industry, over 80 per cent of the industry is self‑generated.”
He said that the detailed rules around differentiating self‑generated and company‑generated opportunities were still being developed.
“We’re very much in consultation stage, we think we’ve got the kernel of an idea, but a lot of the mechanics is yet to be defined,” Cramb said.
Buffet v à la carte
Aussie’s traditional model has bundled brand, support tools, client solutions, lead generation, and loan packaging into one comprehensive offering.
In contrast, Modular aims to let operators pick and choose which elements they tap into while keeping a greater share of trail they originated themselves.
“Currently the branded proposition in Aussie is like the buffet. You get everything,” he said.
“What we are trying to do here is create an à la carte menu. Then by taking the à la carte menu, you can not only choose your own way, but be rewarded for the economics, for the value that you’re creating, and so that’s compelling, we think, for the business owners.”
Existing books, ownership, and valuation impact
Yet Cramb said that the treatment of pre‑existing books was one of the most sensitive elements in consultation.
“Existing customers and relationships are key, the framing here is we’re still in dialogue with the network, and how this might work,” he said.
“Trail is effectively the asset that a mortgage broking business is building and no matter which way we go, we will be respecting that.”
He said that franchise valuations were often based on multiples of trail, adding that higher pass‑through on self‑generated trail should flow through to asset values over time.
“By offering a higher pass-through on the component of trail that they generate themselves, we’re actually increasing the value of their business,” Cramb said.
“They’re trying to create an asset value in the future, for many of them, it’s their superannuation, their retirement, it’s the business they want to put on for multi-generations.”
Internal pathways and external entrants
While the concept began as an internal discussion, Aussie expects Modular to have appeal beyond its current network.
“This gives another way for that pathway to occur, for some brokers that are coming from mobile they may see an opportunity to grow with a more self‑gen and a more on‑demand service,” he said.
“This did start with an internal conversation about how to support growth, but we do want to attract stronger operators into our business as well.”
For external operators, Cramb said that Modular offered a compelling proposition.
“For external brokers, it’s a really interesting question. We believe that modular will give us a much stronger way and a more differentiated position to take to the marketplace now,” he said.
He said that Aussie was offering what he labelled a “bring your own brand” economic level, where operators could retain commercially attractive settings while partnering with Aussie.
“This is quite unique in the marketplace. We’re not aware of anyone who’s going to be offering such convincing headline rates, along with the strength of the Aussie brand,” Cramb said.
Ecosystem play and market share ambitions
Cramb said this broader evolution was central to Aussie’s ambition to hold and grow a 20 per cent share of the mortgage market over time.
“So, 20 per cent is our ambition, and that’s clearly a long‑term ambition,” he said.
“That’s going to take time. Modular is only one part of this strategy, but it’s a key vehicle to continue to grow into the future.”
Cramb said that the focus was on recruiting and retaining “stronger operators”.
He also said that by bringing more referral relationships in‑house, Modular could help fuel that growth.
“A lot of broking businesses today would have those referral relationships, but by bringing it in-house, they can help solve customers’ problems better, give customers a better experience – but ultimately to be able to also participate in the economics is a nice byproduct of that outcome,” he said.
Cramb said that for existing franchisees, the new pathway remained optional.
Aussie is continuing consultation with its network and expects to make decisions on how Modular will go to market later in the year.
[Related: Court date set in ‘junk insurance’ case against Aussie]
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