Trail CRM to launch aggregator group

Kiwi software provider Trail CRM has launched plans to start its own mortgage adviser aggregator group, TMM Online can reveal. [Updated with correct fee structure].

Friday, December 18th 2020, 6:52AM

The company, which provides CRM software and compliance tools to mortgage brokers and insurance advisers, has begun preparations to launch its own alternative, the Kiwi Adviser Network.

A new group has been set up in the NZ Companies Register under the name. Its directors are listed as Trail chief executive Chuck Slogrove and Trail chief technology officer Benjamin Krebs.

Trail CRM's management team, including chief executive Chuck Slogrove, have already given a presentation to select mortgage advisers to detail their proposition.

It claimed that 30 advisers, representing $1 billion in lending, had signed a letter of intent to join the new group.

The group is in discussions with banks about head agreements, with a "full panel" of "second-tier lenders" approached.

When it launches, commission management will be handled in Trail's software, while payments will be managed by KAN.

In the presentation, Trail said the new group was required due to the rising cost of regulation and pressure surrounding commission.

According to the presentation, the new group will let advisers take their own licence or come under the group FAP.

The company argues it is best placed to offer strong data security and technology services to its advisers.

In its presentation, the group said there would be a technology-led approach to training, audit and monitoring.

The new broker group is set to launch in March next year as the new financial advisers' regulatory regime comes into effect.

For insurance-only advisers, the new group will charge $600 a month per person for one-person businesses, to $500 per month per person for businesses with more than six people.

For mortgage advisers, the group will charge $900 per person per month for one-person businesses, to $750 per person per month for businesses with more than six people.

The new competitor will push compliance features as a strong selling point.

The group will be included in KAN's compliance assurance plan and get a yearly Strategi audit. The group will provide adviser training in professional standards, periodic business monitoring, and a licensing and compliance support service.

Trail CRM chief executive Slogrove declined to comment when approached by TMM Online.

Correction: the original article stated that membership for advisers would range from $600 to $500 a month per person per month. Those figures refer to insurance-only advisers.

Tags: aggregation technology