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Broker backflip as BoQ seeks profit turnaround

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Australian Broker | 29 Mar 2012, 05:45 AM Agree 0
Bank of Queensland will attempt an about-face with plans to open the mortgage broker channel as a strategy to turn around flagging fortunes
  • ozboy | 29 Mar 2012, 10:00 AM Agree 0
    Well that's interesting Mr Liddy stated the broker business was unprofitable, then earlier this week BOQ flagged that they were reducing commissions paid to the branch owner managers. So the question that every broker will be asking is: "What is the commission plan BOQ will release? and can they handle the business?" Knowing quite a few insiders both BOQ and owner managers I can tell you the biggest hurdle they all deal with is the antiquated systems. We already have enough 2nd tier lenders who want the business but then can't handle it we don't really need another. Mind you I could be wrong....na!
  • Brent | 29 Mar 2012, 10:16 AM Agree 0
    Look at the positive move it has had on their profitability now. They swing back into broker world again to we can save the day! I suspect there will be a lot of brokers that will be pretty hesitant to use them.
  • Country Broker | 29 Mar 2012, 10:17 AM Agree 0
    very intersting , why would a broker go back to them now when we have so many choices like ANZ, HOMESIDE, Bankwest and even the CBA and so on who are keen to see the buisness they write with the broker chanel increase,AND they all supported the broker chanel during the GFC fall out times. i for one will not be going near them.
  • Wes | 29 Mar 2012, 10:20 AM Agree 0
    Apart from a current distribution model which is barren, the latest capital raising really underlines BoQ as a brand with a questionable conscience. I would be very wary before dealing with BoQ. If they treat their small shareholders badly at the expense of institutional investors, how are they going to treat their B2B clients ?
  • Robert | 29 Mar 2012, 10:31 AM Agree 0
    This sends a good message to the banks that the broker channel really does underpin there business. Lets see the support it deserves.
  • mark | 29 Mar 2012, 10:38 AM Agree 0
    Who ?
  • PeterT | 29 Mar 2012, 10:42 AM Agree 0
    The evil part of me says this could be a great opportunity to target BOQ customers. Headline could be, "BOQ is loosing money. Move before their mortgage rates go through the roof!"

    Steve has also stated that reengaging brokers is a short term priortiy to ramp up business. This suggests that if things turn around for them, they'll ditch the brokers again. No way in hell I'll work with them.
  • Rach | 29 Mar 2012, 10:43 AM Agree 0
    So with this statement they're already saying they'll just be in it for a good time, not along time ???

    "BoQ chief executive Stuart Grimshaw has tapped mortgage broker use as a short-term priority to revive the bank's struggling profits. In a presentation to investors, the bank called opening the mortgage broker channel "a quick win" to ramp up business."

    As soon as things improve, they'll just dump and run again ?

  • John Black | 29 Mar 2012, 10:51 AM Agree 0
    In my opinion any additional lender available to the broker channel is a plus. The more lenders the stronger is the broker offering of choice. Welcome back BOQ the brokers will improve your bottom line with an efficiency internal salaried staff cannot match.
  • Keith Bridges | 29 Mar 2012, 10:55 AM Agree 0
    They are just joining the bandwagon of Members Equity, Credit Unions that have returned to the broker space becuase the pie is so much smaller and they have no chance of reaching growth projections!. Their products are bland and lack market penetration as their franchaise owners already know, so I doubt there will be much success here for them.
  • MLH | 29 Mar 2012, 11:22 AM Agree 0
    Macquarie, CU's and now BoQ. Suncorp are also providing us with an improved commisison model. Next will be RAMS...
  • Brisbane broker | 29 Mar 2012, 12:10 PM Agree 0
    Ha Ha.

    What would happen if client go to BoQ branch to sign the docs and manager/owner goes to them ‘we would not charge you this and that’ and client goes ‘then do it’ and give flick to broker. It did happen back in 2004 and that was one of the reason why BoQ got out of broker channel because broker were complaining regarding BoQ manager/owners.
  • Paul Shahinian | 29 Mar 2012, 01:27 PM Agree 0
    Mr Liddy with said BOQ does not need brokers and their is no future for broker introduced business. What does he think brokers are just a tap?? We have quality and viable business and don't need players jumping in and out of the market as it suits. In future he should talk less, I would be suprised if brokers give BOQ a second chance.
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