Bankwest to reward quality applications

by Mackenzie McCarty16 Jul 2012

Bankwest has pledged to increasingly gear commissions towards rewarding quality broker loan applications, which enable increased efficiencies for the lender.

Speaking with Australian BrokerNews TV, head of specialist banking Ian Rakhit said the bank would focus increasingly on rewarding quality - which could even see brokers earn more.

"What I think will happen going forward is we will look at the quality of submission as being the real driver for commissions and incentives," Rakhit said.

"It makes philosophical sense that a broker who packages a deal correctly or costs me less in terms of processing time may well get rewarded better than a broker who passes an applicant in with no pay slips, no supporting documents, and costs me more in terms of processing time because we need to go back to the broker and the client for additional information," he said.

Rakhit said banks were facing a difficult economic environment where commissions were under pressure, but said broker channel heads had been successful in maintaining remuneration levels.

"I think the heads of the broker channels within the banks should all be applauded that broker commissions haven't changed for the negative during a very difficult period of time," he said.

Want to view the full multimedia exclusive? Watch it today on Australian Broker TV.


  • by Country Broker 16/07/2012 10:14:04 AM

    This is smoke and mirrors to me. If Bankwest want quality business,in a quality input , they should look a their own internal processes first, There is nothing wrong with their product what they need to do is process quickly and effeciently brokers will support lenders who do this ,
    To claim broker commissions are under pressure must be questioned when this and other lenders have NOT passed on rate cuts in full for some time, to ease the pressure if there is any get the back office efficent .

  • by Casey 16/07/2012 2:43:20 PM

    I think it's more of a shared responsibility rather than a push back to brokers remuneration. The lenders need to shoulder an even share.

    After GFC banks started and continue to reduce staffing numbers. If history is an indicator, all the experienced long serving staff took up redundancies, voluntarily or otherwise. This leaves the less experienced staff to fill the void. In a tighter credit environment with lesser experienced staff and greater emphasis on objective decisioning there is bound to be a slowdown in process.

    In addition there has been major consolidation in back office processes among majors and their subsidiaries. There is no way this type of major platform consolidation won't cause an issue on the front side processes.

    This is not to say broker don't have similar burdens. Rejuvenating the talent pool when a lot of experienced brokers are cashing out is just as difficult. Training someone with the increased time expenditure of NCCP is just as onerous as what the lenders are doing, albeit on a smaller scale but very on par when relative to size and scale.

    So let's all stop saber-rattling and focus on getting things right. Engage brokers, don't punish them for lack of engagement.