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Competition to see banks cut out brokers

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Australian Broker | 26 Sep 2011, 07:00 AM Agree 0
A financial services consultant has claimed banks will increasingly try to shut out brokers as the mortgage market becomes more competitive
  • BCentral | 26 Sep 2011, 10:56 AM Agree 0
    Banks cutting off brokers would be like brokers cutting off referral partners. 2/3 of clients I deal with are unaware that the banks are offering these margains, and most clients on my database are not willing to refinance for a 0.2 saving. The banks have been direct merketing since Adam was a boy, yet brokers still manage to gain good market share. All I can say is good luck to them, if they cut us off, we'll move to the next!
  • Neil Williams | 26 Sep 2011, 11:11 AM Agree 0
    Imagine that!!! Banks wanting to cut thier brokers adrift. When did this start!!! Keep going - the move to 2nd tier lenders should have started years ago. The major banks do not deserve the business from brokers, and they never did.
  • John Ruddick | 26 Sep 2011, 03:32 PM Agree 0
    I suspect that the person who wrote this article has not spent any time in the broker's office and seen how much effort goes into each loan. Do you really think the average bank branch wants all this work to go back inside their offices? I dont think so - their staff wont be able to cope. Brokers are hear to stay because consumers love us - and the consumer is king.
  • South Coast Broker | 26 Sep 2011, 04:36 PM Agree 0
    Clearly the writer does not understand mortgage broking and why banks deal with brokers. Do you really believe that the "direct" channel has no costs? The Banks have to pay their staff wages, training, premises expenses, car and phone costs whether the deal is approved and written or not. For brokers, we only get paid on a success basis -- and we get clawed back. The broker channel is definitely not un-competitive, and it will continue to thrive whilst ever there are professional brokers offering professional services.
  • Broker | 26 Sep 2011, 05:49 PM Agree 0
    You are spot on John, my clients can't stand the thought of dealing with a branch directly and see zero benefit and a lot of time wasting in doing so.
  • The Author | 16 Feb 2012, 05:05 PM Agree 0
    Not to make too finer a point but I started in Finacial services in 1982, have managed distribution channels in all sectors in cluding Banking and Bancassurance and in 2009 sold a profitable Mortgage business, I would hardly say I do not understand the process.....so lets not get personal lets stay objective and ask why would i see a broker when abank will match the offer or better it........second tier lenders and non conforming lenders will always need a Broker ...but thats another market segment....a high turnover one at that.....
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