Banks react: Commissions will stay put

by Ben Abbott29 Nov 2011

NAB's major bank competitors have all reacted to NAB Broker's commission restructure by saying they plan no immediate changes to their own broker remuneration structures.

Yesterday, NAB Broker announced that it would pay 65 basis points up-front to all brokers from 1 January next year, as part of a wider change to its star segmentation system.

However, major banks are planning no immediate changes despite intense market competition.

ANZ broker distribution head Meg Bonighton said the bank has never segregated brokers, and that they have always had access to the same commission structure.

"The feedback we get from our brokers is that this is very competitive, and we have no plans for any changes at this point in time," she said.

Westpac general manager of broker distribution Tony MacRae said there would be no changes to the bank's current position for both up-front and trail commissions.

"Westpac is committed to the mortgage broker market, through an ongoing focus on strengthening our overall service proposition with brokers and their customers," MacRae said.

"We will continue to do this through our branch, operations and broker teams working together to provide expert BDMs, quick consistent service, transparent communication, and create opportunities for brokers to meet with our local bank managers to build local business partnerships."

The Commonwealth Bank's executive general manager of distribution Kathy Cummings also said there were no changes planned for the bank.

"Commonwealth Bank has no immediate plans to change current broker remuneration," she said.

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CBA to review commission clarity


  • by craig 29/11/2011 11:06:29 AM

    We shall see as banks volume dwindle.
    They will have no choice within 3 mths I predict We do far better job than there mobile bankers or branches do.

  • by James Green 30/11/2011 12:06:02 AM

    Banks pricing teams are discounting at record levels. (I would guess 20 to 35 bps above standard pricing ranges.)
    Therefore, why wouldn't a lender give just +3bps (10 bps upfront)?
    NAB's momentum is going to be hard to stop.
    Wining back this marketshare will be very expensive. 3bps is it worth the risk?