Offering Rate Tracker via brokers - not a strategic priority
By
Larry Schlesinger
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24/11/2009 1:00:00 PM
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19
comments
Brokers have once again been denied the opportunity to sell Bankwest's Rate Tracker home loan, after the bank recently recommenced marketing the product
Television commercials and messages on the Bankwest website emphasise the product is only available in Bankwest branches or over the phone
Mark Reid, head of retail sales at Bankwest, told Broker news the product had not been available to brokers since October 2008.
"Up until recently, Rate Tracker was not marketed. There have been some short term changes made earlier this month, that specifically effect the east coast," he said.
He said the "key element" behind this decision was to "continue to drive the success of Bankwest as a challenger brand".
"It's critical that we deliver on our strategic priorities, maintaining the momentum behind our east coast network expansion and the pursuit of a national agenda for the company as a whole," he said.
"This is a business decision that has been made in line with our strategic target, as we continue to build awareness of the Bankwest brand on the east coast," he added.
Reid said the broker channel remained "an important distribution channel for retail in Bankwest and will continue to do so in the future".
The Rate Tracker home loan offers a 1% p.a. smaller interest rate than the average standard variable rate of the big four banks. This is an introductory variable rate for two years.
Bankwest's Capped Home Loan, Mortgage Shredder, Premium Home Loan and Low Doc Loan are all still available via the broker channel.
History of Rate Tracker:
- 30 July 2008 - Bankwest tells Broker news it will no longer offer its Rate Tracker product via the broker channel.
- Feb 2009 - Bankwest introduced Rate Tracker Ultra Home Loan through brokers and branches
- Sept 2009 - Capped Rate Home Loan offered via broker channel
- 12 October 2009 - Bankwest stops taking applications for Rate Tracker Ultra Home Loan.
- November 2009 - Bankwest advertises Rate Tracker Home Loan as "direct only" product
Related stories:
BankWest pulls top product from brokers - BankWest will no longer offer its RateTracker product via the broker channel, with the firm's head of retail sales Mark Reid saying the bank's hand had been forced due to the loan's popularity
Latest Comments
Total:
19
comment(s)
melb broker on
24 Nov 2009 07:24 PM
Simple.....dont use them
TL on
25 Nov 2009 12:21 PM
Bankwest have proven over the last couple of years NOT to support brokers, I''m surprised why any broker would put ANY business with them. Also rate tracker only competitive during the first 2 years then customer pays a premium - easy to sell against.
Mike R on
25 Nov 2009 12:25 PM
BankWest is an important lender in my distribution channel, however I have taken a strategic decision not to use them. Now BW can read my garbage. p.s. I have a long memory.
Jamil Allouche on
25 Nov 2009 12:30 PM
This is absolute disregard and undermining of the broker channel. Funny, coming from a lender that supposedly depends on a large volume of business through brokers.
Nothing will change until we (brokers) begin to voice our opinions through the lenders we recommend. One voice will sound like a whisper but collectively would sound like thunder. Stop being dictated to!!
Damien on
25 Nov 2009 12:31 PM
Care factor is zero, the product is ordinary , their service is disgraceful. I have used them twice in 8 years and quite franky I''d rather have my teeth extracted, as it would be a far more enjoyable experience that putting up with what they deem as service....
Tony on
25 Nov 2009 12:41 PM
If Bankwest won''t provide a level playing field, then I, for one, won''t use them. With 80% of their business coming from brokers, they will soon realise the error of their ways.
Mark on
25 Nov 2009 12:53 PM
Their actions speak much louder than their words. If Mark Reid thinks brokers will continue to be an important distribution channel for BW in the future, he''s kidding. Either make it an even playing field, or stop the charade and just stop using brokers altogether.
BBB on
25 Nov 2009 01:02 PM
I was a big fan of BankWest before you know who took them over. I now find their service is terrible, their web site ( lendnet) is at time unable to be be understood, and their phone centres the WORST. Settlements are a shambles, with the solicitors I speak to on behalf of clients saying to me they find the settlements process an absolute nightmare , but what can we expect when they have a parent bank that they have.
Now the Rate e tracker being offered through their branches is the last straw , PLEASE FELLOW BROKERS DO NOT USE THEM
Gavin Maslen on
25 Nov 2009 01:05 PM
It''s disappointing that Bankwest have removed the product from the broker channel. Any move that contributes towards a perception that it is more expensive to use a broker, is not one that I will ever support.
Goodo on
25 Nov 2009 02:56 PM
Resi''s 2 yr intro loan "Switch & Save" is much a better deal than the Bankwest offer which has high fees and a high revert rate.
Tuff guy on
25 Nov 2009 03:08 PM
I love it! I love when a lender comes out with something brokers don''t like everyone says ''don''t use them''. Have a look at yourselves guys, if you all keep banging on like this you''ll soon have no lenders to use at all.
kevin collins on
25 Nov 2009 04:02 PM
Where is your MFAA in all of this, taking a fight to Bankwest.
Better get used to it guys, this is just the start in the war on Brokers, when are other lenders going to introduce a competitive product and say brokers can't sell it? Stand by.
kc.
Phil on
25 Nov 2009 05:17 PM
KC they already are, ring Westpac direct, pose as a client and see what rate you get..... 5.31%
Positive Broker on
26 Nov 2009 07:20 AM
This just highlights the need for brokers to find a broker friendly lender and support them big time. I don''t care if they are a bank or a non bank. I have only come to this conclusion lately due to an pathetic experince with ANZ and I am now trimming my panel substantially to ensure I only use lenders who can provde the product and service required by my clients,
A loanmarket broker on
27 Nov 2009 12:46 PM
This is absolute disregard and undermining of the broker channel. Funny, coming from a lender that supposedly depends on a large volume of business through brokers.
Nothing will change until we (brokers) begin to voice our opinions through the lenders we recommend. One voice will sound like a whisper but collectively would sound like thunder. Stop being dictated to!!
Bankwest Tolerant on
27 Nov 2009 05:52 PM
While not happy with the current decision, Bankwest have been a huge supporter of my business for almost a decade. When other lenders weren''t quite sure, Bankwest was always there. I don''t like the decision but understand it may have been necessary to prop up its fledgling east coast branches. Please though return to an even playing field before 2010.
POME Broker on
30 Nov 2009 01:01 PM
I love Bankwest, they have been a huge supporter of my business and although we can not sell this product, I don''t rate it and can easily sell against its high application fee and short honeymoon period. At the end of the day, my customers deal with ME and rely on my professional service. Bankwest are a business like any other, I''d hate to lose them altogether should their parent company pull the plug. Good luck BW, I look forward to new competetive products in the future.
Broker on
30 Nov 2009 01:37 PM
I had my accreditation cancelled due to our aggregator not meeting their stupid volume requirements, then we were taken over by a larger group, so they invited me to reaccredit myself once again, that invite went straight into the rubbish bin!
Ex pat on
01 Dec 2009 05:01 PM
i finalised a rate tracker deal jnust before the cut off, the client visited a branch to sort credit card, cheque book and debit cards, well, i have certainly almost lost him due to the poor effort put in by the branch, if Bankwest want to sell this product through the branches only they have a lot of work to do to sell the bank as well as us brokers do