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White takes aim at broker bashing association

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Julia Corderoy | 17 Jul 2015, 08:20 AM Agree 0
The FBAA has defended brokers after a banking association took aim at the third party channel
  • Tony | 17 Jul 2015, 08:58 AM Agree 0
    Well said Peter White!
  • Buderim Broker | 17 Jul 2015, 09:01 AM Agree 0
    Well said Peter White, a common sense story for once, who is COBA anyway???
  • John | 17 Jul 2015, 09:04 AM Agree 0
    Why do you think the broker arm is gaining more and more of the market? The answer is we know what we are talking about and give better service?
  • Trev | 17 Jul 2015, 09:11 AM Agree 0
    Where is the MFAA in all of this? Gone silent since Phil left!
  • Paul@TMC | 17 Jul 2015, 09:22 AM Agree 0
    Peter & Siobhan.
    I think I speak for a few of my broker colleagues when I say that we are sick of the stigma cast upon us by the banks, and yes this is a broad conclusion given the COBA represents the general opinion of the banks. Talk has become "cheap" on both sides of the fence, we need to make it clear we are not going to put up with the general smear against our industry, this is our livelihood and in other forums it would be classed as slander and defamatory. What are we going to do about this??? Surely the comments by the COBA can be construed as defaming the FBAA & MFAA.
  • CJ | 17 Jul 2015, 09:24 AM Agree 0
    Ease up precious. Dictatorship? Now who's name calling.
  • Buddo | 17 Jul 2015, 09:58 AM Agree 0
    Well said Peter. Some straight shooting for a change, & as mentioned already by others, it would be nice to see the MFAA back up these comments. Any chance of AB asking them to comment? I think the more brokers & professional bodies that come out & call this for what it is (naive & ill informed) the better.
  • Broker | 17 Jul 2015, 10:02 AM Agree 0
    The commentary from COBA confirms just how irrelevant and out of touch these organisations really are – I mean just what percentage of the population would’ve even heard of them?

    All they do is make utter fools out of themselves with such immature, stupid and misinformed commentary – they would be better served to get of their collective arses and conduct some real surveys with real people that have utilised the services of a professional Mortgage Broker. Our share of the pie is 50% plus for a reason.

    To also suggest that we are incentivised by differing commission levels is simply ridiculous , when one considers that these commissions are basically colluded and price fixed anyway!


  • Steve McClure | 17 Jul 2015, 10:10 AM Agree 0
    The COBA website states:
    "The Customer Owned Banking Association represents a vigorous and allied group of independent Australian customer owned financial service providers" ... end quote.

    This raises questions, as some of their members and associates actively source business from brokers, e.g. MyState, IMB (commercial). Sure, those members might not have proposed the submission, but do they support their association or do they support their brokers?

    Another point is they may need to check their compliance in advertising, as you can only use the word independent if you don't receive commissions - and I'm pretty sure credit unions and the like do. Hence Peter's valid comments.
  • Neil Williams | 17 Jul 2015, 10:20 AM Agree 0
    Gees, what is COBA's reason to exist? To make remarkably poor commentary on the broker fraternity? I hope COBA keep up the lame attempt to smear us hard-working brokers. This will simply make more consumers seek out brokers to form a clear understanding of the value proposition we brokers offer. We have nothing to fear. The vast majority of us are tested for our compliance regularly, participate in ongoing educational forums for our professional development and meet many regulatory checks in order to remain in business. As for incentives, is this really a new issue to throw at us. Twenty two years ago when working for a very popular lender I received incentives to hit targets. Wow. Welcome to the 21st century COBA.
  • Adelaide Finance Broker | 17 Jul 2015, 10:26 AM Agree 0
    Our firm offers a range of services including home, commercial, equipment & motor vehicle finance. We have access to almost 30 financial institutions and major lenders derivative products. We are very much involved in assisting our clients with their transactional banking requirements and unlike the banks, We have an in-house financial planner who is ethical and well versed in all aspects of his profession. We have arrangements with insurance brokers who offer a much wider choice of insurance products and provide better customer service experience. Please let me know of any person with such skills in a bank branch. I would like to offer them a job so that they can better service their client.
  • Terry S | 17 Jul 2015, 12:11 PM Agree 0
    I love it when ill informed groups make ridiculous commentary such as COBA hove done. It gives the broking fraternity the perfect platform to promote our superior services and offerings compared to the single platforms such as the banks and Building societies etc.
    Thank you COBA, your great for business.
  • Stephen Dinte | 17 Jul 2015, 01:06 PM Agree 0
    It may be all good and well for us to get hot under the collar about this COBA submission, but did anyone in the wider community actually see that story or their submission?
    I for one have not seen or heard anything about the submission outside of our industry mags, so in all probability, this is just a storm in a tea cup.
    The members of the parliamentary committee would likely treat the submission with the distain it deserves.
    We all know that we are wonderful, so let's just get back to the task of continuing to provide a sublime service to our clients and let that do the "talking".
  • Stephen Dinte | 17 Jul 2015, 02:31 PM Agree 0
    It may be all good and well for us to get hot under the collar about this COBA submission, but did anyone in the wider community actually see that story or their submission?
    I for one have not seen or heard anything about the submission outside of our industry mags, so in all probability, this is just a storm in a tea cup.
    The members of the parliamentary committee would likely treat the submission with the distain it deserves.
    We all know that we are wonderful, so let's just get back to the task of continuing to provide a sublime service to our clients and let that do the "talking".
  • Siobhan Hayden, CEO MFAA | 20 Jul 2015, 09:19 AM Agree 0
    I had commented on the original article posted last week. Below is my and the MFAA's response on the matter.

    The feel commentary listed in the COBA article shows a sad reflection on the professionalism of COBA as an industry body as it lacks supporting data on the claims made, ignores the industry trends that reflect current consumer confidence in brokers and appears to have no spokesperson.

    The facts are that brokers have a 51.9% share of settled loans with a more than 60% share of market growth. This is economics 101 demonstrating that consumers are using and recommending the third party channel. This is supported in the definitive Ernst & Young Report that we commissioned independently earlier this year.

    COBA also reference the big four owned aggregator groups implying a potential bias within the broker community based on these ownership arrangements. I find this commentary to be offensive. It is not supported by any data that shows, despite an overall market share of around 80% of all new loans by the major brands, the industry only refers to them in 68.9% of cases. This shows again either a lack of industry knowledge or simply unsupported commentary by COBA in this submission.

    I strongly support the broker channel which creates greater consumer competition with access for the vast majority of brokers to an enormous number of products (many have access to 300 - 500 products which is more than adequate to meet consumer needs). In addition, MFAA finance brokers are the best educated industry professionals in their field in the country.

    COBA has stated that a broker’s requirement to provide a “not unsuitable” product is a “far cry from the best home loan for the customer”. This ignores the fact that brokers must consider the customer’s circumstances including their need for features such as off-set accounts, redraw or additional repayments while providing access to multiple lenders.

    Naïve statements such as “the best price is often not part of the broker’s considerations” only highlights the poor understanding of the broker model from COBA’s spokesperson.
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