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JP Morgan slams banks over discounting

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Australian Broker | 20 Oct 2016, 07:00 AM Agree 0
The wealth management firm’s latest mortgage industry report contained a number of warnings about bank pricing discipline
  • chrisC | 20 Oct 2016, 10:13 AM Agree 0
    If the major Banks would set a fair pricing position from the start and actually provide 'service' instead of thinking 'the product sale' or their 'processes and system constraints' their service or their service levels, discounting needs would reduce. They only mark up the margin to charge annual fees and discount anyway. Other Lenders don't. The discounts are generally on new business - a small percentage of their book. Banks by offering these discounts for short terms and not carrying them (they eventually get reeled into normal pricing over time) are literally telling the borrower to look around / refinance in time. We know there is no loyalty by the banks - they have taught us that but they expect loyalty back and play on their customers laziness / its too hard to change banks, keeps the base tied in. Banks make huge profits / record profits even when other businesses are falling down around them in recessions and Governments support them with their policies to keep a strong banking industry. Come on JP Morgan, let a few discounts through to at least let the customer think they are getting some value for their money.
  • John | 20 Oct 2016, 02:31 PM Agree 0
    Under responsible lending, if a customer came to you and said I a want a better rate? The first thing is ask their existing lender? If they don't come to the party and lender B does, is this churning? Or is it responsible lending?
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