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Major extends commission incentive as competition heats up

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Australian Broker | 05 Sep 2013, 07:00 AM Agree 0
A major bank has said it will extend a commission incentive that has seen brokers receiving an extra 10bps upfront
  • Keith of the west | 05 Sep 2013, 09:31 AM Agree 0
    And during the Gfc they were the first to cut commissions!

    Thanks but no thanks
  • Alex | 05 Sep 2013, 09:41 AM Agree 0
    Sad that WBC still believes good brokers recommend based on commission, WBC Product and Policy and procedure and staff responses are so bad I don't remember them being on a loan comparison for the last 18 months.
  • Skeptikal | 05 Sep 2013, 10:16 AM Agree 0
    Is 10bps worth the frustration of dealing with them It costs us far more than that for the extra work we have to put in
  • Old Time Broker | 05 Sep 2013, 10:36 AM Agree 0
    Increasing commissions works.

    When Westpac dropped commissions their 3rd party market share plummeted.

    Should Westpac change their commission rates to be equal with CBA, they would become a top competitor in the 3rd party space again.

    Saying you would hold a grudge over their pull back during the GFC period and the period where they swallowed a cow buying St George, is simply a bad idea.

    Westpac was one of the first to pay brokers a decent upfront and trail. Their Mortgage Company was the biggest in 3rd party during the 90s and could easily become #1 again...
  • oldBroker | 05 Sep 2013, 10:40 AM Agree 0
    I can't understand this strategy. So you have a part-time incompetent broker who settles 1 deal out of 100 but because he is part of a tier-one aggregator he gets an extra 10 point bump. What logic is this? How is this helping the industry?
    And who cares that applications are up 14%... what is the settlement increase?
    Get rid of clawbacks and the banks can pay the brokers individually and then good-riddance aggregators. One good result of this is the elimination of contractual and trail issues associated with aggregators.
  • Gibbo | 05 Sep 2013, 10:42 AM Agree 0
    Good old Westpac, it never changes, burn the brokers and then buy them back. Haven't you Brokers got a memory! Take the money while you can but get ready for a huge kick in the head eventually, AGAIN.
  • Capt Haddock | 05 Sep 2013, 10:43 AM Agree 0
    Volume bonus' are abhorrent. Good brokers will direct business where it is best suited not where best commission and bonus' are.
  • Broker | 05 Sep 2013, 11:26 AM Agree 0
    No thanks Westpac , my memory is still quite sharp , unlike yours!
  • Gibbo | 05 Sep 2013, 12:18 PM Agree 0
    Hey Old Broker,
    Westpac have burnt Brokers over and over again. It is irrelevant that they were one of the first to pay commissions and they could again be a top competitor in the 3rd party space again. It is not just a matter of commission; it is a matter of their inconsistencies and contempt for Brokers that they have.
    I recall some years ago they did a huge branch roll out and dropped brokers remuneration, believing they could do it all themselves, they failed. Time and time again they try to roll out programs to push brokers aside only then to find themselves loosing market share, having to come back and buy us all back or roll out some “we love you brokers” program.
  • Mary | 06 Sep 2013, 09:51 AM Agree 0
    I appreciate the comments from Old Time Broker, well said. I totally agree with all stated.
    Cheers
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