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Banks 'stealing' from brokers

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Australian Broker | 08 Feb 2013, 08:00 AM Agree 0
Big banks are 'stealing' brokers' business and it's not enough to wait on the MFAA to speak up, says Mortgage House's Sarah Roberts
  • SteveL | 08 Feb 2013, 09:01 AM Agree 0
    Individual brokers who provide a truly diversified product offering (Mortgages, Financial Planning, Accounting, property etc)have very little to no risk of this happening. You don't need to be a "Huge player" to be able to do this just great with relationships and having the clients true financial interests at heart.
  • MortgageBroker.com.au | 08 Feb 2013, 10:43 AM Agree 0
    Fully agree with the statement 'Brokers need to get closer to their clients'.

    Others cant push between you and your client unless you give them an opportunity!

    Don't squeeze them too hard though, they may not like it!
  • Keith B | 08 Feb 2013, 10:45 AM Agree 0
    Nothing new to report here, banks have been stealing clients' for since time began.
  • Tony | 08 Feb 2013, 10:45 AM Agree 0
    A recent round table of the Banks suggested that they did not consider online application for mortgages was something that would gather any steam for at least three years
  • Mike C | 08 Feb 2013, 10:45 AM Agree 0
    Wholeheartedly concur with Steve L. We are a group operation of 'Planners', Accountants & 'Broking' / 'Consulting'. We set this up 10 years ago & already have that close relationship. At the end of the day the consumer understands that the individual banks/institution sells product in a non-impartial way. Whats the difference between that & purchasing a box of cereal of a supermarket shelf?
  • Stan | 08 Feb 2013, 10:47 AM Agree 0
    Sarah is quite correct. What she forgets is that there is already an association run for Brokers by Brokers - FBAA.

    Perhaps she should think of joining and, when she sees what we are about, putting her hand up for a State Councillor position.

    Motivated and interested people are always welcome.

    Full Disclosure: I am one of the founding members of FBAA and am the National Secretary.

    Sarah: Have a look at our web site and contact your State President or Peter White our National President.
  • Coast Broker | 08 Feb 2013, 10:52 AM Agree 0
    St George have been doing it since they got taken over by Westpac. Use to give St George a lot of my Business. Give then very little now. Branch staff will actively refinance an existing Broker introduced home loan if the customer asks about a Personal Loan for a Car even if it is only for $10k. Makes the St George Lender look good with their bosses. But not a good move for the Customer to finance a car over a 30 year home loan term. It is important to keep in touch with your clients.
  • Sylvia | 08 Feb 2013, 10:59 AM Agree 0
    With all due respect to Roberts, I think she has her head in the clouds.The very same banks that we work with us brokers are also our competitors.The MFAA is also in bed with the mouth that feeds us and them. Bank are a business, they have all the control and quite frankly can do what they want.What the consumer needs is proper education about what a broker is and does and how they can benefit from one. The MFAA does not do enough to promote this education process.If brokers want more business and better pay then they need to penetrate the market more so that the banks have no choice but to accept that most of their business is coming from a creditable source and market share that they have less control over.Is Roberts suggesting that brokers go to banks whinging for a fair share of their business and then ask the banks to pay for it?? Commical!! I wish all buisness competition could be challenged like that.
  • Anonimous | 08 Feb 2013, 11:15 AM Agree 0
    Many valid points. sure there is a need for brokers to have a strategy, a voice and to know their place in the market. In Sydney we formed a group called the Brokers Forum, we meet on the last Friday of each month. Many brokers have come and gone and many have benefited from the collective wisdom and contributions. our website is called http://www.ifbf.com.au please have a look and join.
  • Ray-Perth | 08 Feb 2013, 11:22 AM Agree 0
    This is a free market and lenders have the right to sell themselves, in the same way we do.

    Its up to the lenders or us to get closer to the clients. We as brokers are lucky cause we can do this because of our more personal service.

    I have never lost an existing client to a lender's direct or indirect approach. Almost every occassion they actually contact me and tell me what the lender did or said !!
  • Anom | 08 Feb 2013, 11:54 AM Agree 0
    Most disappointing when client says Bank didn't ask me all these documents...you are asking too many questions and documents.......
  • Mark Perth | 08 Feb 2013, 12:27 PM Agree 0
    I agree with the main point that we need to get closer to the clients since banks are "competing" (and not stealing) with us for them. As Ray above said, it's a free market. But that all this is all to blame to the "making it ‘easy’ for clients to seek out and apply for products online", Roberts, Really?!?
  • Richard Angus & Associates | 08 Feb 2013, 12:38 PM Agree 0
    Try NAB, they wont nick your clients
  • 1martym1 | 08 Feb 2013, 01:32 PM Agree 0
    I must have missed the CBA commission change at the end of last year. Please elaborate?
  • Broker | 15 Feb 2013, 09:42 AM Agree 0
    Couldn't care less, if I lose or lost a client to a branch , they are more than likely a client I won't miss too much ,and in the end they will get the service and advice what they deserve!
  • SunnyCoastBroker | 18 Feb 2013, 10:49 AM Agree 0
    I'm with Sylvia. Why doesn't the MFAA spend some of our hard-earned membership fees on a prime time TV advertising campaign, highlighting the advantages of using brokers? This wouldn't jeopardise the funding they receive from the Big 4. Would it?
  • bayside broker | 18 Feb 2013, 11:20 PM Agree 0
    Yep. Banks are a factory. They pump out porducts having them sold with little to no human intervention or more importantly ...advice. What next a mortgage vending machine....
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