Citibank readies segmentation strategy

by Ben Abbott11 Nov 2011

Citibank will take the wraps off a new broker segmentation strategy in coming months, following the appointment of new head of broker distribution Aaron Milburn to drive its third party push.

Exiting his role at Bankwest where he was head of broker sales, Milburn has been charged with growing Citibank's broker application volumes, which account for 80% of its business.

Citibank head of mortgages Vibha Coburn told Australian BrokerNews a key aspect of Milburn's role will be to bring to market a premium broker service, the shape of which is still being finalised.

"Something I identified when I came on board was that we would like to offer a premier broker service," Coburn said. "We will begin by trialling that with a few key brokers in the market."

Coburn said a segmentation of the bank's third party agents in the market made sense, as it would essentially mirror its approach to directly-sourced customers.

She added it would also serve to cement the relationship that brokers had with the bank, and would assist in boosting loan volumes and conversions.

"Brokers want to be comfortable that they will get a decision within a certain time and in a certain manner," she said. "If they can have that promise, the broker will feel comfortable with us. It builds the trust, respect and confidence that they have with us," she said.

Citibank's application volumes have increased by 2.4 times year-on-year, with Coburn saying that Milburn will play a key role in pushing for similar growth in 2012. 

"Aaorn has been in the market for a while, and is well known among key aggregators and brokers," Coburn said. "He has a track record in growing business, so he is a good addition for our strategy."

Matthew Wood, who was acting head of distribution this year, will step back into his former role as key account manager for Citibank, where he will focus on strategy development.

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