Banks must stop branch managers from poaching broker business: White

by Julia Corderoy09 Sep 2014
An industry leader has praised the recent move by banks to increase broker commissions, but says that banks need to stop branch managers from taking business away from brokers if they really want to support the third party channel.

FBAA CEO, Peter White responded to an article written by Australian Broker last week quoting the latest J.P. Morgan Australian Mortgage Industry Report that “points out that the banks are increasingly looking to increase upfront and trail commissions to attract greater market share.”

Australian Broker spoke with the principal of Digital Finance Analytics and co-producer of the report Martin North, who said “banks have become more reliant on brokers as an essential pipeline for new business”.

However, White has responded by saying that the relationship must be a “two-way street”. 

“We’ve had a number of members telling us that bank branch managers have intentionally tried to influence their clients to switch to bank products directly, bypassing the broker who introduced the client to the bank in the first place,” he said.

“If the banks truly believe what the surveys are saying – that brokers are more regarded by consumers than banks – and they want to increase broker business, then they must educate their branch managers to support our clients. Branch managers should not intentionally try and claim brokers’ clients but should refer them back to the broker.”

The FBAA recently called on ASIC to extend their power to investigate bank branch managers over lending issues, following the regulators move to target branch managers over dodgy deals done by their financial planners.



  • by King Clive from Canberra 9/09/2014 9:29:38 AM

    The banks are always asking for opportunities to "Bank "our asset finance clients with the false promise that the clients are the brokers and they will respect the relationship.
    They rarely do and are hopeless at dealing with the customers.

    Brokers don't let these bankers near your customers under any circumstances.
    You are their banker .

  • by Lyle_NSW 9/09/2014 9:40:41 AM

    Well said Peter White. One of the major 4 is the absolute worst at it. It feels like they are "white anting" us brokers all the time. When caught all they say is "Oh its just an individual branch manager". Hogwash. When you challenge the branch manager they say its coming from head office.

  • by Country Broker 9/09/2014 10:03:26 AM

    Agree and its not only manager its in house home loan consultants who are on commissions and do not hesitate to knock off a broker client . Any of the big four are doing this .

    I had a CBA staff member tell mu client " it will still be with the broker: and then promptly rewrote the deal and advanced another 30 K .
    I fought to have the claw back reversed , after I received a letter of complaint from my client