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Diamond broker: Segmentation averts blockages

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Australian Broker | 16 Feb 2012, 02:45 AM Agree 0
A Diamond broker has praised segmentation programs, and called CBA's segmentation policy the best in the market
  • Coast Broker | 16 Feb 2012, 10:43 AM Agree 0
    I agree with James Green's on only one part of his comments being about a broker that is not experienced slowing up the channel for all brokers. However to qualify to be one of these top brokers with a lender you must be writing the majority of your business to that Bank. That being the case you may as well go and work for that lender as you would not be good at knowing the niches and policies of the other lenders. Are you giving impartial advise also is a question that needs to be answered with NCCP requirements. I would hardly see ASIC saying it was okay to a Diamond Broker to write the majority of your business to CBA just so you can keep you Diamond Status. By the way I have worked in the industry for over 30 years and have worked for lenders assessing and approving Broker introduced loans.
  • Steve | 16 Feb 2012, 12:03 PM Agree 0
    James should be careful making sweeping generalizations about low volume or inexperienced brokers. There are different business models & low volumes does not necessarily equate to low quality business.
  • ozboy | 16 Feb 2012, 12:11 PM Agree 0
    "Segmentation is important because low volume and inexperienced brokers cause blockages. Our experienced team can’t afford to have an urgent buyer [or] loan held up by these blockages," he said.

    I would disagree with this, it's another of those unquantified statements like branches are cheaper than brokers. Where is the proof? Online lodging can assist, clear simple procedures can assist, credit staff who know their own policies can assist and pushing back to that particular broker can assist.

    CBA has on many occasions used that statement but there has been very little follow up or proof to confirm what is said. I get it that your top performers should get preferential treatment that's good business sense but to justify it by constantly repeating an unsubstantiated line doesn't make it true.

    There is nothing wrong with segmentation or non segmentation it is a business operation each with pro's and con's, I am just getting a little sick and tired of the public put downs of others so a few can feel important.
  • Wayne | 16 Feb 2012, 01:06 PM Agree 0
    I would have to agree with Coast Broker. Most of these "Top Performing" Brokers are little more than Mobile Lenders for a particular bank. They channel most of their business through one lender because it is easier for them and only write them with someone else if it doesn't fit with their main lender. They do no favours for the industry because by supporting these monster banks they give them the power. If they did a bit more Broking and a lot less Banking then the Broking Industry, and the broader public would all benefit.
  • Michael | 18 Nov 2015, 10:43 AM Agree 0
    I have been in the broking business for 19 years and strongly believe segmentation not only treats me as a 2nd class broker but also treats my clients as 2nd class - great way to introduce a new client. This segmentation policy of the majors is used primarily to increase their volume from lazy brokers or who I call order takers. My volume with the majors has dropped significantly over the last 2 years as there are better options for my clients. Being a broker, I work for the client.
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