A major bank figure has rubbished criticism of broker conversion ratios, saying brokers are actually outdoing lenders.
Speaking to the MFAA Convention in Adelaide, NAB Broker general manager of distribution John Flavell has suggested that bank complaints over broker conversions are often unfair. Flavell presented statistics showing that conversions through third party channels in 2011 were 64%, compared to 63% for bank proprietary channels.
“We can see the trend that conversion rates for broker channels are actually exceeding those of proprietary channels, and I would expect that trend to continue so long as we work collaborative," Flavell said.
Flavell criticised banks for "taking [to brokers] with a stick" over conversion ratios, calling it "a lot of wasted energy and a lot of wasted effort," he said.
"What's incumbent upon [lenders] to make their policies and processes clear, and it's incumbent upon brokers to understand those policies and processes," he said.
Flavell praised broker conversion rates, saying that brokers did well in understanding that processes of a variety of lenders.
"Given the complexity associated with having to have knowledge of processes across a broad base of lenders, I think the broker channel does very well," he said.