Broker business absolutely critical: MacRae

by Kevin Eddy15 Mar 2012

Westpac head of mortgage distribution Tony MacRae has declared third party brokers are 'absolutely critical' to the growth prospects of the bank over the coming year.

On the Sydney leg of national roadshow entitled 'Building Great Partnerships', MacRae said that 45% of Westpac's business continues to be sourced from its mortgage broking network.

MacRae said 78% of these mortgage broker-sourced customers fall into the bank's key 'affluent' segment, and about 80% of those affluent customers sign up with a Westpac local branch.

"The broker business is absolutely critical to Westpac, and really critical at the local level for our retail network," MacRae said.

MacRae outlined a suite of initiatives it was pursuing in 2012 to build its offering for brokers, key to which was product development.

"We’ve started work on a channel-specific suite of products that should be delivering value to you and your customers," MacRae told brokers. "We’re also looking at product opportunities, where we can give you the opportunity to sell a broader range of Westpac products and you h ave the opportunity to earn additional revenue."

MacRae said the bank was specifically looking at opportunities in SMSFs, where it has started to roll out training and information sessions for its broking network.

"We’ve already introduced that to over 280 brokers. We’ll lift that rollout over time," he said.

Westpac aims to continue building deeper partnerships with top tier brokers, MacRae said, specifically through its recently launched 'Platinum Broker' top tier offering.

The aim is to be a 'relationship bank' that thrives on partnerships with stakeholders.

"We want great partnerships with each other, great partnerships with brokers and aggregators, great partnerships with our retail network, our product team, and operations," he said.

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COMMENTS

  • by Geoff - Melbourne 15/03/2012 10:14:08 AM

    Why not restore our upfronts to 0.70%? We now have choice and power again. Waiting for response.

  • by Country Broker 15/03/2012 10:55:45 AM

    How could you go back to Westpac , first to discount trailers and up fronts , first to charge for accredation , no way. If they really want broker business bring in a fixed for the life of the relationship up front and trailer agreement .

  • by JBJB 15/03/2012 12:08:35 PM

    You can't reduce broker commissions by 40%, increase clawbacks to 2 years and then turn around and say how much you value broker business.